ATO Interpretative Decision

ATO ID 2002/441

Goods and Services Tax

GST and bathroom rod accessories
FOI status: may be released

This ATO ID contains references to provisions of the A New Tax System (Goods and Services Tax) Regulations 1999, which have been replaced by the A New Tax System (Goods and Services Tax) Regulations 2019. This ATO ID continues to apply in relation to the remade Regulations.
A comparison table which provides the replacement provisions in the A New Tax System (Goods and Services Tax) Regulations 2019 for regulations which are referenced in this ATO ID is available.

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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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 bathroom accessories, 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 bathroom rod accessories, namely a modular shelf and a towel holder, installed for people with a physical disability?

Decision

No, the entity is not making a GST-free supply under subsection 38-45(1) of the GST Act when it supplies bathroom rod accessories, namely a modular shelf and a towel holder, installed for people with a physical disability. The entity is making a taxable supply under section 9-5 of the GST Act.

Facts

The entity is a supplier of bathroom accessories. The entity is supplying a modular shelf and a towel holder that are accessories for a bathroom rod.

The bathroom rod is fixed to the wall of the bathroom, but is not designed to support the weight of an individual. The modular shelf and the towel holder are then attached to the bathroom rod. The modular shelf and towel holder are installed for people with a physical disability.

The entity is registered for goods and services tax (GST). The supply satisfies the other positive limbs of section 9-5 of the GST Act.

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 or in the A New Tax System (Goods and Services Tax) Regulations 1999 (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 18 in the table in Schedule 3 to the GST Regulations (Item 18) lists 'customised modifications and accessories for the aids and appliances mentioned in items 111 to 121 of Schedule 3 to the GST Act'.

The entity is supplying accessories (a modular shelf and a towel holder) for a bathroom rod. Therefore, it must first be determined whether the bathroom rod is a medical aid or appliance covered by items 111 to 121 in the table in Schedule 3 to the GST Act.

The relevant items listed in the table in Schedule 3 to the GST Act that may cover the bathroom rod are:

•: Item 112 - bath supports;
•: Item 114 - shower supports;
•: Item 121 - toilet supports.

For the bathroom rod to be accepted as a bath support, a shower support, or a toilet support, it is considered that the bathroom rod must be able to support the weight of an individual when the rod is attached to a wall. In this case, although the bathroom rod is attached to a wall, it is not designed to support the weight of an individual. Therefore, the bathroom rod is not a bath support, shower support or a toilet support as listed in Schedule 3 to the GST Act. Further, it is not covered by anything else in items 111 to 121 in the table in Schedule 3 to the GST Act. Accordingly, the modular shelf and towel holder, are not covered by Item 18 because they are not customised modifications and accessories for a medical aid or appliance that is covered by items 111 to 121 in the table in Schedule 3 to the GST Act.

Therefore, the first requirement of subsection 38-45(1) of the GST Act is not satisfied. Accordingly, the entity is not making a GST-free supply under subsection 38-45(1) of the GST Act when it supplies bathroom rod accessories, namely a modular shelf and a towel holder.

The entity is registered for GST and the supply satisfies the other positive limbs of section 9-5 of the GST Act. Furthermore, the supply is neither GST-free under any of the other provisions in Division 38 of the GST Act not input taxed under Division 40 of the GST Act. The entity is making a taxable supply under section 9-5 of the GST Act when it supplies bathroom rod accessories, namely a modular shelf and a towel holder installed for people with a physical disability.

Date of decision: 18 December 2001

Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
   section 9-5
   Division 38
   subsection 38-45(1)
   Division 40
   Schedule 3
   Schedule 3 table item 111
   Schedule 3 table item 112
   Schedule 3 table item 113
   Schedule 3 table item 114
   Schedule 3 table item 115
   Schedule 3 table item 116
   Schedule 3 table item 117
   Schedule 3 table item 118
   Schedule 3 table item 119
   Schedule 3 table item 120
   Schedule 3 table item 121

A New Tax System (Goods and Services Tax) Regulations 1999
Schedule 3 table item 18

Related ATO Interpretative Decisions
ATO ID 2002/442

Keywords
Goods & services tax
GST free
GST health
Section 38-45 - medical aids & appliances
GST supplies & acquisitions
Taxable supply

Siebel/TDMS Reference Number: CW248746A

Business Line: Indirect Tax

Date of publication: 17 April 2002

ISSN: 1445-2782

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