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This edited version has been archived due to the length of time since original publication.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.

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Edited version of private advice

Authorisation Number: 7920130554593

Date of advice: 4 June 2019

Ruling

Subject: GST and adjustable mattresses

Question

Is your supply of an adjustable bed mattress a GST-free supply under subsection 38-45(1) of A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?

Answer

Yes, your supply of an adjustable bed mattress is a GST-free under subsection 38-45(1) of the GST Act.

Relevant facts and circumstances

·        You are registered for goods and services tax (GST) and supply mattresses.

·        A mattress that serves the same purpose as an adjustable bed.

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 GST Act provides that a supply of a medical aid or appliance is GST-free where it is:

·        Covered by an item listed in Schedule 3 to the GST Act (Schedule 3) or in Schedule 3 to the A New Tax System (Goods and Services Tax) Regulations 1999 (GST Regulations).

·        Specifically designed for people with an illness or disability, and

·        Not widely used by people without an illness or disability.

Item 60 of Schedule 3 (Item 61) lists 'electronically operated adjustable beds'. It is considered a mattress can fall under this category where it can be used on its own as a bed. It is considered that the adjustable mattress that is subject to this ruling is covered by Item 60.

Specifically designed for people with an illness or disability

In determining whether the mattress is specifically designed for people with an illness or disability we need to consider the designer/manufacturers intention of how the good is to be used and its features. Consequently we consider that the design features of the mattress and the manner in which the mattresses are marketed indicate that the mattress satisfies the requirement of being specifically designed for people with an illness or disability.

Not widely used by people without an illness or disability

To determine whether the adjustable mattress is not widely used by people without an illness or disability we need to consider factors such as how it is marketed and where it is supplied. Consequently we agree that the adjustable mattress is not widely used by people without an illness or disability.

Accordingly, the supply by you of the adjustable mattress is a GST-free supply pursuant to the GST Act.

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