Edited version of your private ruling

Authorisation Number: 1012452127754

Ruling

Subject: Lifts for people with limited mobility

Question

Is a limited mobility lifts for people with illness or disability GST-free under subsection 38-45(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?

Answer:

Yes

Relevant facts:

· You are not registered for the goods and services tax (GST).

· You have contracted with a supplier to supply and install a domestic lift (new lifts) at your home for the benefit of one of the residents who has limited mobility.

· The new lift has been specifically designed and equipped with components to accommodate the needs of a person with limited mobility to move between floors in your home.

· The new lift complies with Australian Standard AS 1735.16. (AS 1735 part 16). The standard features required in AS 1735 part 16 lifts (restricted -use lift for people with limited mobility) are:

Maximum travel (m)	12
fully enclosed lift well	Yes
type of control	automatic and key-lockable
Maximum speed m/s	025
Maximum floor area (square metre)	1.6

· The key features in the new lifts are the specifically designed key lock to disable use, braille buttons, and full height door sensor, round handrail, automatic sliding doors, and a floor area of less than 106 square metres.

· The new lift is electrically operated and does not contain the costly features in a general purposes lifts for normal persons. The lift is designed for people with limited mobility. The lift is a slow speed vertical lift and is not widely used by people without an illness or disability

· You advised that you and the supplier have not entered into an agreement to treat the supply of the lift as a taxable supply.

Reasons for decision

Under subsection 38-45(1) of the GST Act, the supply of a medical aid or 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.

Schedule 3

Item 88 in the table in Schedule 3 (Item 88) is listed under the "Mobility of people with disabilities - physical transfer aids" category and the medical aids and appliance listed under this items are 'manual, electric, ceiling track or pool hoists specifically designed for people with disabilities'.

Therefore the usual devices that are covered by Item 88 are medical aids and appliance that are used to "hoist" people with disabilities and transfer them, for example, from a bed to a wheelchair or from a wheelchair into a pool.

The word 'hoists' is not defined in the GST Act and therefore will take on the ordinary meaning. The ordinary meaning of 'hoist' is explained in The Macquarie Dictionary (published by The Macquarie Library Pty Ltd) as:

1. To raise or lift, especially by some mechanical appliance 

4. An apparatus for hoisting, as a lift.

5. the act of hoisting a lift.

Based on the above we consider that the ordinary meaning of 'hoist' also covers lifts such as the limited mobility lifts for people with illness or disability. These lifts are used to "hoist" people with disabilities and transfer them between floors. As the lift is electrically operated, it is therefore in the range of hoists to which Item 88 relates subject to it satisfying Item 88 in relation to specific design requirements - specifically designed for people with disabilities.

Specifically designed for people with disabilities

Item 88 restricts the lifts to those which are specifically designed for people with disabilities.

The Australian Standards in relation to lifts that relates to people with limited mobility are outlined in AS 1735.16 which is about passenger lifts that are intended primarily to provide vertical access for persons with limited mobility. Lifts that comply with the AS 1735.16 are lifts that are specifically designed for people with disabilities and not merely general purpose passenger lifts. The standard features in AS 1735 part 16 lifts are automatic and key-lockable controls, slow moving, and fully enclosed lift well with a maximum 1.6 square metre floor area.

Based on the information provided, the new lift complies with the relevant part of the Australian Standard Code AS1735 part 16 and is especially designed for people with limited mobility.

The key features in the new lifts are the specifically designed key lock to disable use, Braille buttons, and full height door sensor, round handrail, automatic sliding doors, and a floor area of less than 106 square metres. The lift is electrically operated, slow moving and does not contain the costly features in a general purposes lifts for normal persons.

Therefore, the lift satisfies all the requirements of Item 88 as a lift specifically designed for people with limited mobility. Accordingly, the lift satisfies the second requirement in subsection 38-45(1) of the GST Act.

Not widely used by people without an illness or disability

The third requirement in subsection 38-45(1) of the GST Act is that the thing supplied is not widely used by people without an illness or disability. The new lift is a slow moving lift with a floor area to accommodate a wheel chair. The lift are not be widely used by people without an illness or disability. Therefore, the third requirement is also satisfied.

As all the requirements in subsection 38-45(1) of the GST Act are satisfied, the supply of the lift that is specifically designed for use primarily by people with limited mobility is GST-free under section 38-45 of the GST Act.

Please note: You confirmed you and the supplier have not entered into any agreement under subsection 38-45(3) of the GST Act to treat the supply of the lift as a taxable supply.

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