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Edited version of private advice
Authorisation Number: 1012674239779
Ruling
Subject: GST and medical aids and appliances
Question
Is the importation of the power lift chair subject to GST?
Answer
No
Relevant facts and circumstances
You imported a lift seat (Product) from overseas.
Information regarding the manufacturer and the Product is available on the manufacturer's website.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999
Section 13-5
Section 13-10
Section 13-15
Section 38-45
Section 195-1
Schedule 3 - Medical aids and appliances
Reasons for decision
Goods and services tax (GST) is payable on any 'taxable importation' that you make. However an item will not be a taxable importation to the extent it is a 'non-taxable importation'.
An item will be a non-taxable importation where the item would have been GST-free if supplied within Australia.
A 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; and
• specifically designed for people with an illness or disability; and
• not widely used by people without an illness or disability.
All three criteria listed above must be satisfied for the medical aid or appliance to be GST-free.
Items 53 - 58 of Schedule 3 to the GST Act list a number of medical aids and appliances in regard to the 'Mobility of people with disabilities - motor vehicles'. Specifically, item 53 lists 'special purpose car seats'.
We consider the Product falls within the scope of Item 53 of Schedule 3 taking into account the manufacture's product details as listed on their website. That is, the Product is a car seat designed with the specific or special purpose of facilitating the transfer of a person with mobility issues from their wheelchair to their vehicle.
We also consider from the information on the manufacturer's website that the Product is specifically designed for people with an illness or disability and would not be widely used by someone without an illness or disability.
As such, the supply of the Product would be GST-free and therefore would also be a non-taxable importation.