4. Section 38-45 Medical aids and appliances
Non-interpretative – straight application of the law.
Section 38-45 provides that where the elements of that section are satisfied, a medical aid or appliance listed in Schedule 3 will be GST-free. The elements of section 38-45(1) are that the medical aid or appliance is:
- covered by Schedule 3 or subsequent regulation, and
- specifically designed for people with an illness or disability, and
- not widely used by people without an illness or disability.
Once an item meets all of the above elements then its supply will be GST-free all the way down the supply chain and not only when supplied to a person who has an illness or disability.
Further, section 38-45(2) provides that a spare part that is specifically designed as a spare part for a GST-free medical aid or appliance will be GST-free.
Medical aids or appliances can be added to Schedule 3 by regulation.
The following questions explore what is within the concept of ‘medical aid and appliance’ for the purposes of section 38-45. None of the questions and answers should be read in isolation but rather as part of the whole of the information contained in this document.