We’ve updated our medical aids and appliances web content to clarify how GST applies to:
- burn products made of hydro gel and hydro colloids
- waterproof bedding products, including mattress, pillow and quilt protectors.
These products are only GST-free if they’re:
- listed in schedule 3 to the GST Act or in the GST regulations
- specifically designed for people with an illness or disability, and
- not widely used by people without illness or disability.
For example – GST applies to a mattress protector that many of its purchasers use for everyday protection from spills and stains and also for incontinence. GST would also apply to a burn gel that is marketed to treat ‘mild’ or ‘minor’ burns such as superficial burns, scalds and sunburns, as these are not illnesses or disabilities.
You need to check you're applying GST correctly to burn products or waterproof bedding that your business sells.
We won't devote compliance resources to review how you've applied GST to these products for tax periods ending on or before 31 December 2025. This will give you time to update your systems and contracts.
We’ve also updated emerging GST issues for health products, which gives you early information about guidance we’re considering for specific products.
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