ATO Interpretative Decision
ATO ID 2003/1102
Goods and Services Tax
GST and hydro gel based advanced burn treatment productsFOI status: may be released
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This ATO ID contains references to provisions of the A New Tax System (Goods and Services Tax) Regulations 1999, which have been replaced by the A New Tax System (Goods and Services Tax) Regulations 2019. This ATO ID continues to apply in relation to the remade Regulations.
A comparison table which provides the replacement provisions in the A New Tax System (Goods and Services Tax) Regulations 2019 for regulations which are referenced in this ATO ID is available.
This document incorporates revisions made since original publication. View its history and amending notices, if applicable.
This ATOID provides you with the following level of protection:
If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.
Issue
Is the entity, a supplier of medical aids and appliances, making a GST-free supply under subsection 38-45(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it supplies a hydro gel based advanced burn treatment product?
Decision
Yes, the entity is making a GST-free supply under subsection 38-45(1) of the GST Act when it supplies a hydro gel based advanced burn treatment product.
Facts
The entity is a supplier of medical aids and appliances. The entity supplies hydro gel based burn treatment products such as:
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- non-woven medical grade dressing soaked in sterile hydro gel (hydro gel based dressing). This product is designed for use in emergency first-aid treatment of burns and is available in different sizes and shapes including a facemask.
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- worsted wool cloth fire blanket soaked in hydro gel (hydro gel based fire blanket). This product is designed for use in serious emergencies to protect burn victims against airborne contamination and is placed on a burn wound to stabilise victims pending formal treatment.
Hydro gels are preparations whose bases usually consist of water, glycerol (glycerine) or propylene glycol gelled with suitable gelling agents such as tragacanth, starch, cellulose derivatives, carboxyvinyl polymers and magnesium-aluminium silicates. Hydro gels provide optimal circumstances for wound healing.
The entity's products are used primarily to treat burns and are specifically designed for burns victims. The products are not widely used by people without an illness or disability.
There is no agreement between the entity and the recipient of the supply that the supply will not be treated as a GST-free supply.
The entity is registered for goods and services tax (GST).
Reasons for Decision
Under subsection 38-45(1) of the GST Act, the supply of certain medical aids and appliances is GST-free where the medical aid or appliance:
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- is covered by Schedule 3 to the GST Act (Schedule 3), or specified in the A New Tax System (Goods and Services Tax) Regulations 1999 (GST Regulations)
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- is specifically designed for people with an illness or disability, and
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- is not widely used by people without an illness or disability.
Item 3 in Schedule 3 to the regulations (Item 3) lists 'hydro gel'. The GST Pharmaceutical Health Forum - Issues Register - Attachment B - Schedule 3 - Medical aids or appliances (Regulation 38-45.01) describes hydro gel as an advance wound care product predominantly consisting of hydro gel.
The entity's products, hydro gel soaked dressings and blankets, consist primarily of hydro gel and fall within Item 3. As such, these products satisfy the first requirement under subsection 38-45(1) of the GST Act.
The entity's products are used primarily to treat burns and are specifically designed for burns victims. The products are not widely used by people without an illness or disability. Therefore, the remaining requirements in subsection 38-45(1) of the GST Act are met.
The entity is making a GST-free supply under subsection 38-45(1) of the GST Act when it supplies a hydro gel based advanced burn treatment product.
Date of decision: 18 June 2003
Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
subsection 38-45(1)
Schedule 3
Schedule 3 table item 3
Other References:
Commonwealth of Australia 2003. GST Pharmaceutical Health Forum - Issues Register - Attachment B - Schedule 3 - Medical aids or appliances (Regulation 38-45.01). Tax Office, viewed 18 June 2003, www.ato.gov.au
Keywords
Goods and services tax
GST free
GST health
Section 38-45 - medical aids & appliances
ISSN: 1445-2782
| Date: | Version: | |
| You are here | 18 June 2003 | Original statement |
| 26 September 2025 | Updated statement |