ATO Interpretative Decision
ATO ID 2002/302 (Withdrawn)
Goods and Services Tax
GST and the supply of an electrically operated reclining chairFOI status: may be released
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This ATO ID is withdrawn as it is a simple restatement of the law and does not contain an interpretative decision.This document incorporates revisions made since original publication.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.
Status of this decision: Decision Withdrawn 24 November 2006
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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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 supplies an electrically operated reclining chair specifically designed to assist people with disabilities in achieving a standing position with greater ease?
Decision
Yes, the entity is making a GST-free supply under subsection 38-45(1) of the GST Act when it supplies an electrically operated reclining chair specifically designed to assist people with disabilities in achieving a standing position with greater ease.
Facts
The entity is a supplier of medical aids and appliances. The entity is supplying an electrically operated reclining chair.
The chair operates by electronic elevation. The chair is designed to assist elderly or disabled people with knee, leg or hip problems, in achieving a standing position with greater ease. In addition, the chair has a therapeutic design feature whereby the chair reclines to a horizontal position and lifts the user's legs above the heart to aid circulation.
The chair 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, the supply of certain medical aids and appliances is GST-free where the medical aid or appliance:
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- 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);
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- is specifically designed for people with an illness or disability; and
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- is not widely used by people without an illness or disability.
Item 86 in the table in Schedule 3 (Item 86) lists 'electrically operated therapeutic lounge/recliner chairs specifically designed for people with disabilities'. The chair is an electrically operated reclining chair. The question is whether the chair is specifically designed for people with disabilities.
The chair is designed to assist people with knee, leg or hip problems in achieving a standing position. It is also designed to aid circulation. Therefore, the chair is specifically designed for people with disabilities and is covered by Item 86.
Furthermore, the chair is not widely used by people without an illness or disability. Therefore, as all of the requirements of subsection 38-45(1) of the GST Act have been met, the entity is making a GST-free supply under subsection 38-45(1) of the GST Act when it supplies the electrically operated reclining chair specifically designed to assist disabled people in achieving a standing position with greater ease.
Date of decision: 9 December 2001
Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
subsection 38-45(1)
Schedule 3
Schedule 3 table item 86
the Regulations
Keywords
Goods and services tax
GST free
GST health
Section 38-45 - medical aids & appliances
ISSN: 1445-2782
| Date: | Version: | |
| 9 December 2001 | Original statement | |
| You are here → | 24 November 2006 | Archived |
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