| Disclaimer This edited version has been archived due to the length of time since original publication.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. You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of your private ruling
Authorisation Number: 1012521570887
Ruling
Subject: GST and medical aids and appliances
Question 1
Is the goods and services tax (GST) payable for sales of the xx mattresses and pumps?
Answer
No. GST is not payable for sales of the xx mattresses and pumps as you are making a GST-free supply.
Question 2
Are you making a taxable importation when you import the xx mattresses and pumps?
Answer
No. You are not making a taxable importation when you import the xx mattresses and pumps.
Relevant facts and circumstances
You are a xx registered for GST carrying on an enterprise xx.
Your customs brokers will complete the customs formalities to release the goods from customs as your agents and you are named as the owner on the import entry documents.
The import entry document for xx was issued to you on xx from your supplier xx located in xx, it relates to the xx and xx products.
You provided a copy of the brochure which provides details the xx mattresses and pumps products it includes the designers/manufacturer's photographs and descriptions.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 Subsection 38-45(1),
A New Tax System (Goods and Services Tax) Act 1999 Schedule 3 table item 66, and
A New Tax System (Goods and Services Tax) Regulations 1999 Regulation 38-45.01.
Reasons for decision
Question 1
Under subsection 38-45(1) of the A New Tax System (Goods and Services Tax) Act 1999 (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.
The supply of a medical aid or appliance will be GST-free when all of the above requirements are met.
Item 66 in the table in Schedule 3 (Item 66) lists 'pressure management mattresses and overlays' for the mobility of people with disabilities-physical.
The xx mattresses and pumps are not designed as a general home care product for general use. Rather they are designed to reduce a wide range of skin conditions due to prolonged static body weight pressure. They aim to provide preventative action to avoid pressure ulcers. The xx aims to manage all states of the pressure ulcers. As such, the xx mattresses and pumps are designed specifically for people with disabilities and are covered by Item 66. Furthermore, the xx mattresses and pumps are not expected to be used by people without an illness or disability.
Therefore, as all of the requirements of subsection 38-45(1) of the GST Act will be met, you will be making GST-free supplies under subsection 38-45(1) of the GST Act when you supply the xx mattresses and pumps which are designed to reduce a range of conditions, including the prevention of and management of serious pressure ulcers specifically to people with an illness or disability.
Question 2
Section 13-10 of the GST Act states:
An importation is a non-taxable importation if:
(a) it is a non-taxable importation under Part 3-2; or
(b) it would have been a taxable supply that was GST-free or input taxed if it had a been a supply
As the mattress and pump is a GST free supply it will become a non taxable importation when you import the mattresses and pumps. Therefore, when you import these products, they will not be subject to GST