Edited version of private ruling

Authorisation Number: 1011677961515

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Ruling

Subject: GST and supply of medical aids and appliances

Question

Are the following devices GST-free under subsection 38-45(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act):

· product X1

· product X2

· product Y, and

· product W.

Advice

Yes, the following devices are GST-free under subsection 38-45(1) of the GST Act:

· product X1

· product X2

· product Y, and

· product W.

Relevant facts

You work with the deaf and hard of hearing communities and people by assisting them in improving their accessibility with the general community. Your goods or services are provided to either the end user or organisations and associations that support the end user. These organisations also support deaf and hearing impaired people.

You have imported the following products and would like to know if they are GST-free under subsection 38-45(1) of the GST Act:

· product X1

· product X2

· product Y, and

· product W.

Product Range X

Products X1 and X2 are personal hearing systems.

Product Y

Y is a speech-related product.

Product W

Product W is an assistive listening device.

You have provided relevant additional information.

Reason for decision

Under subsection 38-45(1) of the GST Act the supply of certain medical aids and appliances 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); and

· is specifically designed for people with an illness or disability, and is not widely used by people without an illness or disability.

Once an item meets all of the above requirements then its supply is GST-free all the way down the supply chain and not only when supplied to a person who has an illness or disability.

Paragraph 38-45(1)(a) of the GST Act

The first item to be satisfied for an item to be GST-free under subsection 38-45(1) of the GST Act is for it to be covered under Schedule 3 or specified in the GST Regulations.

Communication aids for people with disabilities are listed in Schedule 3. Of particular relevance is item 14 in Schedule 3 which lists speech amplification/clarification aids.

'Speech amplification/clarification aids' is described as a device which is designed to make a person's voice or sound appear larger and/or clearer and more intelligible. It is considered that devices which are designed to increase the volume of the user's voice or clarify the user's voice will be covered by this item.

From the information received, you are providing the following devices for use by people with a hearing impairment.

· product X1

· product X2

· product Y, and

· product W.

These devices can be used in conjunction with a hearing aid or alone (in place of a hearing aid) to obtain better speech clarity or volume in noisier situations. As these devices provide clarity by removing the acoustic interference and amplify the sound they are speech amplification/clarification aid under item 14.

The requirement in paragraph 38-45(1)(a) of the GST Act is satisfied.

Paragraph 38-45(1)(b) of the GST Act

These devices are designed and manufactured to benefit a person with a hearing impairment and are not widely used by people with an illness or disability.

The requirements in paragraph 38-45(1)(b) of the GST Act are satisfied.

Summary

Since all the requirements in subsection 38-45(1) of the GST Act are satisfied, the supply of the product X1, product X2, product Y and product W is GST-free.