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Edited version of your written advice
Authorisation Number: 1012969235952
Date of advice: 24 February 2016
Ruling
Subject: GST and supply of medical aids and appliances
Question
Are the supplies of the specified new products (the products) GST-free supplies under subsection 38-45(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?
Answer
Yes, based on the information that you have provided, the supplies of the products are GST-free supplies because all of the requirements of subsection 38-45(1) of the GST Act are satisfied, as follows:
• the products are considered 'transcutaneous nerve stimulator machines' (TENS machines), which are covered by item 141 in the table in Schedule 3 to the GST Act (item 141);
• the products are designed for people with an illness or disability; and
• the products are not widely used by people without an illness or disability.
Relevant facts and circumstances
You sell medical equipment to hospitals and pharmacies.
You are about to launch a number of new products into the pharmacy market.
You will be acting as a distributor for the manufacturer.
You will be selling the products only within Australia for a recommended retail price of $X.
All the products use the same technology.
The products use a small battery to generate a small electromagnetic current, which stimulates blood flow and reduces the perception of pain.
You have provided a brochure for the products and directed us to your supplier's website for further information.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 Section 9-5.
A New Tax System (Goods and Services Tax) Act 1999 Subsection 38-45.
A New Tax System (Goods and Services Tax) Act 1999 Schedule 3.
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