| Disclaimer This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law. You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of your written advice
Authorisation Number: 1051255439421
Date of advice: 24 July 2017
Ruling
Subject: GST medical aids and appliances
Question
Is the supply of your medical aid GST-free?
Answer
No. The supply of your medical aid is not GST-free.
Relevant facts and circumstances
You are introducing a medical aid and appliance in the market.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 section 38-45.
Reasons for decision
Under subsection 38-45(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), the supply of a medical aid and 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);
● is specifically designed for people with an illness or disability; and
● is not widely used by people without an illness or disability.
Medical aids and appliances that satisfy all these conditions are GST-Free at every point in the supply chain - from manufacture to consumer.
Your medical aid and appliance is not covered in Schedule 3 nor is it specified in the Regulations to the GST Act. Therefore, a supply of your medical aid and appliance, in itself, does not satisfy the requirement in subsection 38-45(1) of the GST Act.
Copyright notice
© Australian Taxation Office for the Commonwealth of Australia
You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).
