ATO Interpretative Decision

ATO ID 2001/690 (Withdrawn)

Goods and Services Tax

GST and supply of a pool hoist
FOI status: may be released

This ATO ID is withdrawn as it is a simple restatement of the law and does not contain an interpretative decision.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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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 pool hoist that is specifically designed for people with disabilities?

Decision

Yes, the entity is making a GST-free supply under subsection 38-45(1) of the GST Act when it sells a pool hoist that is specifically designed for people with disabilities.

Facts

The entity is a supplier of medical aids and appliances. The entity sells a pool hoist.

In this case, the pool hoist is specifically designed for people with disabilities and is not used by people without disabilities. It consists of a pole and winch that is permanently fixed to the side of the pool and has a seat attached to it. When the disabled person is in the seat, it is swung out over the pool and the person is lowered into the pool. This process is reversed when the person gets out of the pool.

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 certain medical aids or appliances 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.

Item 88 in the table in Schedule 3 (Item 88) lists pool hoists specifically designed for people with disabilities. In this case, the pool hoist is specifically designed for people with disabilities. Therefore, the pool hoist satisfies Item 88.

The remaining requirements are that the pool hoist is specifically designed for people with an illness or disability and is not widely used by people without an illness or disability. As discussed, the pool hoist is specifically designed for people with disabilities. In addition, it is not used by people without disabilities. As such, the supply satisfies the 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 sells a pool hoist that is specifically designed for people with disabilities.

Date of decision: 24 October 2001

Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
   subsection 38-45(1)
   Schedule 3
   Schedule 3 table item 88

A New Tax System (Goods and Services Tax) Regulations 1999
ANTS(GST) Regulations 1999

Keywords
Goods & services tax
GST free
GST health
Section 38-45 - medical aids & appliances

Business Line: Goods and Services Tax

Date of publication: 30 November 2001

ISSN: 1445-2782

history

	Date:	Version:
	24 October 2001	Original statement
You are here	24 November 2006	Archived

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