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Edited version of your written advice
Authorisation Number: 1013101314611
Date of advice: 7 October 2016
Ruling
Subject: GST Medical aid or appliance - mobility lift
Question:
Is the supply of a Lift a GST-free supply?
Answers:
Yes.
Relevant facts and circumstances
You are married and both you and your spouse are in your advanced years.
You are currently relatively mobile given your age but are at a high risk of becoming immobile due to your medical conditions. Your spouse also has medical conditions.
You have lived in your present house for X years. The house is multilevel which has not proved to be a problem until now. You would like to prepare for the time when you both are not so mobile by installing a lift. You feel that you need to do that now, before any events overtake you following which your main focus would be on supporting each other, as opposed to going through the process of installing a lift. Due to the nature of your house the lift installation process is lengthy and requires Council approval, so this is something you would prefer to do without other pressures on you.
Your doctor feels that given your present stage in life, it would be much safer for you both to use a lift rather than the steep staircase you have at home.
You intend to purchase a Lift which conforms to Australian Standard AS 1735.16.
The Australian Standard's website states that AS 1735.16 specifies requirements for automatically controlled, low-speed passenger lifts intended for infrequent use by persons with limited mobility. Furthermore, its 'Notes' section states:
NOTES:
1 Guidance on periodic inspection and testing is given in Appendix A.
2 This Standard is not intended to be applied to lifts that transport goods.
3 This Standard is not complementary to either AS 1735.2 or AS 1735.3.
4 Guidance on the selection of the preferred type of lift is given in Appendix B.
5 This Standard applies to lifts that are primarily intended to be used by people with limited mobility who infrequently require a means of elevation to upper floors of their home, and in special cases, small community buildings that are not provided with lifts that comply with AS 1735.2 or 1735.3, subject to approval of the regulatory authorities.
6 Lifts complying with this Standard -
(a) have a low speed of not more than 0.25 m/s, or 0.3 m/s where car door is fitted.
(b) have a small floor area of not more than 1.6 m2;
(c) have a car travel of not more than 12 m; and
(d) have a key-lockable control, so that the use of the lift can be restricted to persons holding a locking means.
You provided part of the following brochure for the Lift that states it complies with AS 1735.16.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 Section 38-45
Reasons for decision
GST-free supplies of medical aids and appliances: Subdivision 38 of the GST Act provides that supplies of certain goods and services relating to health care are GST-free. Subsection 38-45(1) states: |
(1) A supply is GST-free if:
(a) it is covered by Schedule 3 (medical aids and appliances), or specified in the regulations; and
(b) the thing supplied is specifically designed for people with an illness or disability, and is not widely used by people without an illness or disability.
Covered by Schedule 3:
The first requirement in subsection 38-45(1) of the GST Act is that the lift is covered by Schedule 3 to the GST Act. Item 88 in Schedule 3 (Item 88) refers to 'manual, electric, ceiling track or pool hoists specifically designed for people with disabilities'
The ordinary meaning of 'hoist' as defined in The Macquarie Dictionary, 1997, 3rd edition is:
4. an apparatus for hoisting, as a lift.
5. a lift for heavy goods: goods lift.
The usual devices that are covered by Item 88 are used to lift an individual and transfer them, for example, from a bed to a wheelchair or from a wheelchair into a pool. The ordinary meaning of 'hoist' also covers lifts.
The lift is electrically operated. Therefore, it is included in the range of hoists to which Item 88 relates subject to it satisfying Item 88 in relation to specific design requirements.
Specifically designed for people with an illness or disability:
The second requirement is that the lift is specifically designed for people with an illness or disability.
The ATO accepts that lifts that comply with AS 1735.16 satisfy the requirement that the lift is specifically designed for people with an illness or disability.
Not widely used by people without an illness or disability:
A third requirement is contained in paragraph 38-45(1)(b) of the GST Act, i.e. that the lift 'is not widely used by people without an illness or disability'.
The ATO accepts that lifts which comply with AS 1735.16 meet this requirement as the lift is automatically controlled, fully lockable, enclosed and has a slower speed than normal lifts and is intended for infrequent use by persons with limited mobility.
Application of these requirements to the AS 1735.16 lift:
An AS 1735.16 lift meets the requirements of being specifically designed for people with an illness or disability, is not widely used by people without an illness or disability and is covered by Schedule 3. Consequently the supply of such a lift satisfies subsection 38-45(1) of the GST Act and is GST-free.
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