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ATO Interpretative Decision

ATO ID 2001/141 (Withdrawn)

Goods and Services Tax

GST and Bone Density Machine
FOI status: may be released
  • This GST ATO ID is withdrawn on the basis that it is a straight application of the law and does not contain an interpretative decision
    This document incorporates revisions made since original publication. View its history and amending notices, if applicable.

CAUTION: This is an edited and summarised record of a Tax Office decision. This record is not published as a form of advice. It is being made available for your inspection to meet FOI requirements, because it may be used by an officer in making another decision.

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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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 sells a bone density machine?

Decision

No, the entity is not making a GST-free supply under subsection 38-45(1) of the GST Act when it sells a bone density machine. The entity is making a taxable supply under section 9-5 of the GST Act.

Facts

The entity supplies medical aids and appliances and is selling a bone density machine.

The entity is registered for goods and services tax (GST). The supply satisfies the other positive limbs of section 9-5 of the GST Act.

Reasons for Decision

Under subsection 38-45(1) of the GST Act a supply of a medical aid and appliance will be GST-free if:

•
it is covered by Schedule 3 to the GST Act or specified in the A New Tax System (Goods and Services Tax) Regulations 1999 (Regulations); and
•
it is specifically designed for people with an illness or disability; and
•
it is not widely used by people without an illness or disability.

The bone density machine is not GST-free under subsection 38-45(1) of the GST Act, as it is not listed in Schedule 3 to the GST Act or in the Regulations.

The entity is registered for GST and the supply satisfies the positive limbs of section 9-5 of the GST Act. Furthermore, the supply is neither GST-free under Division 38 of the GST Act nor input taxed under Division 40 of the GST Act. Therefore, the sale of the bone density machine is a taxable supply under section 9-5 of the GST Act.

Date of decision:  9 April 2001

Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
   section 9-5
   Division 38
   subsection 38-45(1)
   Division 40
   Schedule 3

A New Tax System (Goods and Services Tax) Regulations 1999
   the Regulations

Keywords
Goods & services tax
GST-free
GST health
Medical aids & appliances

Business Line:  GST

Date of publication:  1 August 2001

ISSN: 1445-2782

history
  Date: Version:
  9 April 2001 Original statement
You are here 24 February 2006 Archived

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