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Edited version of private ruling

Authorisation Number: 1011575954947

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Ruling

Subject: GST and a medical aid

Question

Are you making a GST-free supply when you supply the specified detection system?

Answer

Yes, you are 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 you supply the specified detection system.

Relevant facts and circumstances

This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling.

You are registered for GST.

You are the supplier of the specified detection system.

The specified detection system is made specifically for nursing homes and hospitals for use by people with a disability or illness, for example, those with mental or physical difficulties or who are frail due to old age.

The specified detection system provides no benefits for people who do not have a disability or illness.

The specified detection system is a device which interfaces with the nurse call system in a hospital or nursing home environment. It will activate the nurse call system when a patient attempts to exit the bed, or falls out of bed, thereby preventing night time wandering and injuries within a hospital/nursing home environment.

There is no agreement between you and any recipients of the supply that the supply of the specified detection system will not be treated as a GST-free supply.

Relevant legislative provisions

A New Tax System (Goods and Services Tax) Act 1999 Subsection 38-45(1).

A New Tax System (Goods and Services Tax) Act 1999 Subsection 38-45(3).

A New Tax System (Goods and Services Tax) Act 1999 Section 9-5.

A New Tax System (Goods and Services Tax) Act 1999 Schedule 3.

A New Tax System (Goods and Services Tax) Regulations 1999 regulation 38-45.01.

Detailed reasoning

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:

Item 33 in the table in Schedule 3 to the GST Act (Item 33) lists 'medical alert devices'. It is considered that a 'medical alert device' is a device that is designed for the purpose of alerting medical/caring personnel or an ambulance service to the fact that a person is in need of emergency medical assistance or that the person has a medical condition that may require specific treatment.

In your case, the specified detection system is designed for the purpose of alerting nursing personnel to the fact that a patient with a medical condition (with resultant physical or mental difficulties) needs immediate assistance. Therefore, the specified detection system falls within the meaning of Item 33.

Furthermore, the specified detection system is designed for people with an illness or disability and is not widely used by people without an illness or disability.

Therefore, you are making a GST-free supply under subsection 38-45(1) of the GST Act when you supply the specified detection system.

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