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This edited version has been archived due to the length of time since original publication.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

Authorisation Number: 1011830294120

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Ruling

Subject: GST and medical aids and appliances

Question

Is your supply of certain medical aids and appliances (and associated replacement parts) either by sale or hire GST-free?

Answer

Those medical aids and appliances satisfying the requirements of subsection 38-45(1) of the A New Tax System (Goods and services Tax) Act 1999 (GST Act) will be GST-free when sold or hired.

Relevant facts and circumstances

    · You are registered for GST.

    · You are to supply medical aids and appliances.

    · You do not have an agreement with your customer that the supply of the medical aids and appliances will not be GST-free.

Relevant legislative provisions

GST Act

Section 38-45 with reference to Schedule 3.

A New Tax System (Goods and Services Tax) Regulations 1999 (GST Regulations)

Schedule 3.

Reasons for decision

Summary

Those medical aids and appliances satisfying the requirements of subsection 38-45(1) of the GST Act will be GST-free when sold or hired.

Detailed reasoning

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 or in Schedule 3 to the GST Regulations

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

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

Your medical aids and appliances meet the requirements of section 38-45 of the GST Act. Consequently, your supply of the medical aid or appliance will be GST-free.

Hire of equipment

The GST Act does not stipulate that the medical aid or appliance must be purchased for it to be GST-free. Hence, any medical aid or appliance that is GST-free when sold is also GST-free when hired.


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