ATO Interpretative Decision

ATO ID 2002/883 (Withdrawn)

Goods and Services Tax

GST and incontinence appliance
FOI status: may be released

This ATO ID is withdrawn as it is a straight application of the law and does not contain an interpretative decision.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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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 supplies a device used to assist in the control of incontinence?

Decision

Yes, the entity is making a GST-free supply under subsection 38-45(1) of the GST Act when it supplies a device used to assist in the control of incontinence.

Facts

The entity is a supplier of medical aids and appliances. The entity supplies a device used to assist in the management and control of incontinence. The incontinence device is mechanically operated and is specifically designed as an incontinence control appliance for women with bladder control problems.

The device 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 is not to 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.

Item 20 of Schedule 3 to the GST Act (Item 20) lists 'incontinence appliances'.

The device supplied by the entity is designed to assist women with bladder control problems to maintain continence and, as such, is considered to be an incontinence appliance for the purposes of Item 20.

Additionally, the device is specifically designed for people with an illness or disability and is not widely used by people without an illness or disability. As such, the requirements in subsection 38-45(1) of the GST Act are satisfied.

Therefore, the entity is making a GST-free supply under subsection 38-45(1) of the GST Act when it supplies a device used to assist in the control of incontinence.

[Note: As the supply of the incontinence device is GST-free, the importation of the device is a non-taxable importation as defined in section 13-10 of the GST Act.]

Date of decision: 26 March 2002

Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
   section 13-10
   subsection 38-45(1)
   Schedule 3
   Schedule 3 table item 20

A New Tax System (Goods and Services Tax) Regulations 1999
regs

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

Business Line: GST

Date of publication: 28 August 2002

ISSN: 1445-2782

history

	Date:	Version:
	26 March 2002	Original statement
You are here	15 December 2006	Archived

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