ATO Interpretative Decision
ATO ID 2001/640 (Withdrawn)
Goods and Services Tax
GST and manual pressure infusersFOI status: may be released
-
Decision withdrawn. This ATO ID is withdrawn as the ATO view on 'infusion sets' is contained in ATO ID 2005/295.This document incorporates revisions made since original publication.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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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 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 manual pressure infusers?
Decision
Yes, the entity is making a GST-free supply under subsection 38-45(1) of the GST Act when it supplies manual pressure infusers.
Facts
The entity is a supplier of medical appliances. In this case, the entity is making a supply of manual pressure infusers.
The manual pressure infusers are used to infuse fluids, such as saline, into a patient. The infuser contains attached equipment to enable the infusion of fluids, at the desired pressure, with a one-hand operation. It contains a pressure relief valve and is supplied as a whole set for immediate use.
The manual pressure infusers are specifically designed for people with an illness or disability and 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, 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 1999 (GST Regulations); and
- •
- is specifically designed for people with an illness or disability; and
- •
- is not widely used by people without an illness or disability.
The only item of relevance to this case is item 12 in the table in Schedule 3 to the GST Regulations (Item 12). Item 12 lists 'infusion sets'.
The phrase 'infusion sets' is not defined in the GST Act or GST Regulations.
Generally, where a phrase is not defined in the relevant Act or regulations, it is usually interpreted in accordance with its ordinary meaning, unless it has a special or technical meaning. Where a phrase has a special or technical meaning, it is necessary to determine its meaning by reference to the industry to which that phrase relates (Herbert Adams Ltd v FCT (1932) 47 CLR 222). Steadman's Medical Dictionary (1999) defines the word 'infusion' to include, 'The introduction of fluid other than blood, e.g., saline solution, into a vein.'
In this instance the manual pressure infuser is a complete set to manually infuse fluids, including saline, into the patient. Therefore, the manual pressure infusion sets are specified at Item 12.
These manual pressure infusers are specifically designed for people with an illness or disability and not widely used by people without an illness or disability.
As such, the entity is making a GST-free supply under subsection 38-45(1) of the GST Act when it supplies manual pressure infusers.
Date of decision: 7 September 2001
Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
subsection 38-45(1)
Schedule 3 table item 12
Case References:
Herbert Adams Ltd v FCT
47 CLR 222
Other References:
The Macquarie Dictionary, 1997, 3rd edn, The Macquarie Library Pty Ltd, New South Wales
Keywords
Goods & services tax
GST free
GST health
Section 38-45 - medical aids & appliances
ISSN: 1445-2782
| Date: | Version: | |
| 7 September 2001 | Original statement | |
| You are here | 4 November 2005 | Archived |
Copyright notice
© Australian Taxation Office for the Commonwealth of Australia
You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).
