1.g. What is a spare part for the purposes of subsection 38-45(2)? Are supplies of spare parts for GST-free medical aids and appliances only GST-free when supplied to the person with an illness or disability?
This issue is a public ruling for the purposes of section 105-60 of Schedule 1 to the Taxation Administration Act 1953.
A spare part is a part which has been specifically designed to replace a faulty, worn, or broken part of a medical aid or appliance.
Spare parts which are specifically designed as spare parts for a GST-free medical aid or appliance, are GST-free at all points in the supply chain. That is, it is not necessary to determine to whom or for what the part is being supplied. Provided the part has been specifically designed to replace a faulty, worn, or broken part of a GST-free medical aid or appliance, the supply of that part will be GST-free under subsection 38-45(2) at all stages of the supply chain.
For example, rubber stoppers are generic devices designed for various uses, such as stoppers for the bottom of a steel chair. Therefore as rubber stoppers are not specifically designed for use as a spare part for walking sticks, they are not GST-free as a spare part for a medical aid or appliance.