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Edited version of your written advice
Authorisation Number: 1013102972271
Date of advice: 6 October 2016
Ruling
Subject: Whether a specific operated mobile lifting device (lifting device) is GST-free as a medical aid or appliance
Question 1
Is the supply of the specific operated mobile lifting device by you a GST-free supply under section 38-45 of the A New Tax System (Goods and Services) Act 1999 (GST Act)?
Answer
Yes, provided that there is no agreement with the recipient of the supply that the supply not be treated as GST-free.
Subsection 38-45(1) of the GST Act provides that a supply of a medical aid or appliance 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.
Item 88 in Schedule 3 to the GST Act (Item 88) lists 'manual, electric, ceiling track or pool hoists specifically designed for people with disabilities'.
The lifting device satisfies the ordinary meaning of 'hoist' as defined in The Macquarie Dictionary, 2013, 6th edn. The lifting device is powered by batteries so it is an electric hoist.
The lifting device is designed to assist people who are unable to get up without assistance. As such, we consider that the lifting device is specifically designed for people with an illness or disability.
Persons without an illness or disability can generally get up without assistance if they fall over. As such, we consider that the lifting device is not widely used by people without an illness or disability.
The lifting device satisfies the requirements of subsection 38-45(1)of the GST Act because"
• it is covered by Item 88 ('manual, electric, ceiling track or pool hoists specifically designed for people with disabilities') of Schedule 3 to the GST Act,
• it is specifically designed for people with an illness or disability, and
• it is not widely used by people without an illness or disability.
There is no agreement with the recipient of a supply of a lifting device that the supply be treated as GST-free.
Question 2
Is the importation of the lifting device by you a non-taxable importation under section 13-10 of the GST Act?
Answer
Yes, GST is not payable.
Section 13-10 of the GST Act provides that:
An importation is a non-taxable importation if:
(a) it is a non-taxable importation under Part 3-2; or
(b) it would have been a supply that was GST-free or input taxed if it had been a supply.
As the supply of the lifting device is GST-free under section 38-45 of the GST Act, the importation of the lifting device is a non-taxable importation under paragraph 13-10(b) of the GST Act.
Under section 13-15 of the GST Act, GST is payable only on taxable importations.
Relevant facts and circumstances
You are registered for GST.
You import and supply a range of healthcare products, including a specific operated mobile lifting device (lifting device) which helps a fallen person up to almost standing position within a few minutes.
The manufacturer markets the lifting device for ambulance services, home care and those working with physically challenged people.
Your website markets the lifting device to the aged care, manual handling and rehabilitation industries.
The lifting device is listed on the Australian Register of Therapeutic Goods as a Medical Device Class 1 - 'Lift, patient transfer'.
You have advised that there is no agreement with the recipient of a supply of a lifting device that the supply be treated as GST-free.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 (GST Act)
• Section 9-5
• Section 13-5
• Section 13-10
• Section 38-45
• Schedule 3
A New Tax System (Goods and Services Tax) Regulations 1999
• Schedule 3
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