ATO Interpretative Decision
ATO ID 2002/230
Goods and Services Tax
GST and tactile alerting tiles for the visually impairedFOI status: may be released
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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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 tiles, 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 tactile alerting tiles that are designed to aid a person who is visually impaired?
Decision
Yes, the entity is making a GST-free supply under subsection 38-45(1) of the GST Act when it supplies tactile alerting tiles that are designed to aid a person who is visually impaired.
Facts
The entity is a supplier of tiles. The entity supplies tactile alerting tiles that are designed to aid a person who is visually impaired.
The tiles have a distinct raised surface and are used both inside and outside of buildings as tactile ground surface indicators. A visually impaired person will be alerted to potential hazards, such as the presence of stairs or the need to change direction to avoid danger, through sensory contact with the tiles.
In this case, the tiles comply with Australian Standards for, 'Design for access and mobility - Tactile ground surface indicators for the orientation of people with vision impairment'. As such, the tactile alerting tiles are specifically designed for people with an illness or disability.
The tactile alerting tiles do not have an application other than to alert the visually impaired. As such, the tactile alerting tiles 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 a medical aid or appliance is GST-free where the medical aid or appliance:
- •
- is covered by Schedule 3 to the GST Act (Schedule 3), or specified in the A New Tax System (Goods and Services Tax) Regulations 2019(GST Regulations);
- •
- is specifically designed for people with an illness or disability; and
- •
- is not widely used by people without an illness or disability.
Item 151 in the table in Schedule 3 (Item 151) lists 'auditory/tactile alerting devices'. The phrase 'auditory/tactile alerting devices' is not defined in the GST Act.
Accordingly, it is appropriate to examine the ordinary meaning of that phrase.
The Macquarie Dictionary (1997) defines 'auditory' to mean 'relating to hearing, or the sense of hearing ...', 'tactile' to mean '1. of or relating to the organs or sense of touch. 2. perceptible to the touch...'; and 'alert' to mean '...4. an alarm or warning..'
Accordingly, it is considered that an auditory/tactile alerting device is a device which is designed to alert a visually impaired person to a strong occurrence, danger or presence through the person's sense of touch or hearing.
The tactile alerting tiles have a distinct raised surface and are used both inside and outside of buildings as tactile ground surface indicators. The tiles alert visually impaired people to potential hazards such as the presence of stairs or the need to change direction to avoid danger. Therefore, the tactile alerting tiles are considered a tactile alerting device and are covered by Item 151.
The tactile alerting tiles are specifically designed for people with an illness or disability and are not widely used by people without an illness or disability. Accordingly, the supply meets the remaining requirements of subsection 38-45(1) of the GST Act.
Therefore, the entity is making a GST-free supply under subsection 38-45(1) of the GST Act when it supplies tactile alerting tiles that are designed to aid a person who is visually impaired.
Amendment History
| Date of Amendment | Part | Comment |
|---|---|---|
| 9 April 2019 | Throughout | Updated A New Tax System (Goods and Services Tax) Regulations 1999 to A New Tax System (Goods and Services Tax) Regulations 2019. |
Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
subsection 38-45
subsection 38-45(1)
Schedule 3
Schedule 3 table item 151
The Regulations
Other References:
The Macquarie Dictionary, 1997, 3rd edn, The Macquarie Library Pty Ltd, New South Wales
Australian Standard, AS 1428.4 - 1992 - Design for access and mobility - Tactile ground surface indicators for the orientation of people with vision impairment.
Keywords
Goods and Services Tax
GST free
GST health
Section 38-45 - medical aids & appliances
ISSN: 1445-2782