ATO Interpretative Decision
ATO ID 2001/217
Goods and Services Tax
GST and Wheelchair RampFOI 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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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, an installer of wheelchair ramps, 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 constructs a wheelchair ramp and incorporates it into the structure of a house?
Decision
Yes, the entity is making a GST-free supply under subsection 38-45(1) of the GST Act when it constructs a wheelchair ramp and incorporates it into the structure of a house.
Facts
The entity is an installer of wheelchair ramps. The entity constructs a wheelchair ramp and incorporates it into the structure of a house in order to provide access to an individual in a wheelchair.
Various components are used to build the wheelchair ramp in situ (on site).
To function properly, the wheelchair ramp is incorporated into the structure of the house.
The wheelchair ramp is specifically designed for people with an illness or disability, and is not widely used by people without an illness or disability.
There is no agreement between the entity and the recipient 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 a supply of a medical aid and appliance will be GST-free if:
- •
- it 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(Regulations);
- •
- it is specifically designed for people with an illness or disability; and
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- it is not widely used by people without an illness or disability.
The category of medical aids and appliances listed in Schedule 3 that is of particular relevance to this case is 'mobility of people with disabilities - motor vehicles'. Within this category, item 56 in the table in Schedule 3 lists 'wheelchair ramp'.
The category heading 'mobility of people with disabilities - motor vehicles' is not an operative part of Schedule 3 (section 182-15 of the GST Act and Note 2 in Schedule 3). As such, the category heading may only be used as an interpretation tool in certain circumstances, for example, where the description of an item listed in Schedule 3 is ambiguous or obscure (paragraph 182-10(2)(c) of the GST Act). In this case, the meaning of the term 'wheelchair ramp' is clear. Therefore, the interpretation of 'wheelchair ramp' is not restricted by its category heading. It is considered that a wheelchair ramp that provides access to a house, falls within the scope of item 56 in the table in Schedule 3.
Furthermore, in this case, the wheelchair ramp is built up in situ (on site) from various components. As the wheelchair ramp needs to be incorporated into the structure of the house to function properly, it is only upon the completion of its construction and incorporation that the ramp becomes identifiable as a wheelchair ramp. As such, the supply by the entity, of the construction and incorporation of the wheelchair ramp (which includes materials and labour), is the supply of a 'wheelchair ramp' as specified in item 56 in the table in Schedule 3.
As this wheelchair ramp is covered by Schedule 3, is specifically designed for people with an illness or disability, and is not widely used by people without an illness or disability; its supply and installation is a GST-free supply of a medical aid or appliance under subsection 38-45(1) of the GST Act.
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
section 182-10
paragraph 182-10(2)(c)
subsection 38-45(1)
section 182-15
Schedule 3
Schedule 3 Note 2
Schedule 3 item 56
The Regulations
Other References:
GST Consultative Forum on Health Issues Log - Issue 4.a.14
Keywords
Goods & services tax
GST free
GST health
Medical aids & appliances
ISSN: 1445-2782
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