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Edited version of your written advice
Authorisation Number: 1051294795340
Disclaimer
You cannot rely on this edited version in your tax affairs. You can only rely on the advice that we have given to you or to someone acting on your behalf.
The advice in the Register has been edited and may not contain all the factual details relevant to each decision. Do not use the Register to predict ATO policy or decisions.
Date of advice: 13 October 2017
Ruling
Subject: GST and supply of toilet grab rails as GST-free
Question
Are the supplies of specified grab rails specifically designed and manufactured for people with an illness or disability, GST-free?
Answer
Yes. The supplies of the specified grab rails specifically designed and manufactured for people with an illness or disability will be GST-free.
Relevant facts and circumstances
● You are registered for goods and services tax (GST).
● You make supplies of building fixtures and fittings for household and commercial bathrooms and kitchens.
● You also design and supply grab rails for people with an illness or disability.
● The grab rails you design and supply are not for the use of ordinary people without an illness or disability.
● The grab rails are manufactured to comply with relevant grab rail requirements under AS1428.1-2009 Access and Mobility.
● They are constructed to withstand 1100N force as per requirements and used for access and mobility in the use of toilet suites.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 – subsection 38-45(1)
Reasons for decision
Subsection 38-45(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) provides that the supply of a medical aid or appliance is GST-free where the medical aid or appliance:
● is covered by Schedule 3 (medical aids and appliance), or specified in the regulations; and
● is specifically designed for people with an illness or disability; and
● is not widely used by people without an illness or disability.
A medical aid or appliance that is GST-free under subsection 38-45(1) of the GST Act is GST-free all along the supply chain and not only when it is supplied to a person with an illness or disability.
Under subsection 38-45(2) of the GST Act, a supply is GST-free if the thing supplied as a spare part for, and is specifically designed as a spare part for, another thing the supply of which would be GST-free under subsection 38-45(1) of the GST Act.
Item 121 in the table in Schedule 3 (Item 121) lists ‘toilets supports’. A toilet grab rail may possess the characteristics of a toilet support and be identifiable as a toilet support either at the point of manufacture or, in the case of a generic grab rail at the point of installation in a toilet area. A toilet grab rail is covered by Item 121 if it has the characteristics of and is identifiable as being a toilet support when it is supplied.
You have stated that the grab rails you provide are specifically designed and manufactured for use by people with an illness or disability and are not used by people without an illness or disability. Based on the fact provided, your supply of the grab rails that are specifically designed for people with an illness or disability and not widely used by people without an illness or disability satisfies all the requirements of subsection 38-45(1) of the GST Act. Therefore, the supply of grab rails listed above will be GST-free.
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