Edited version of your written advice

Authorisation Number: 1012752397809

Ruling

Subject: GST and medical aids

Questions

1. Is the importation of the medical aid, a GST-free medical alert device when imported and sold?

2. Can the private binding ruling issued to you under authorisation xxxxx be used to classify the Goods and Services Tax for the importation of the medical alert products and parts by another entity?

3. Is a pre- paid SIM card fitted to the medical alert so the user can communicate with his / her carers GST exempt if used?

4. Is the Y card used and purchased separately to load and pre-pay the SIM card a spare part of the GST free medical alert?

5. Is the waterproof pouch or the belt pouch used to wear the GST-free medical alert in the shower and elsewhere a GST-free part of the GST-free medical alert?

Answers

1. Yes. The supply of the medical aid, meets the requirement of section 38-45 of the A New Tax System, (Goods and Services Tax) Act 1999 (GST Act) and as such it can be imported and sold to the customers GST-free.

2. No. A private ruling applies only to the entity to which it was given, it is based on the facts presented in that private ruling and the facts will be different for another entity.

3. No. The Y card will not meet all the elements of subsection 38-45(1) of the GST Act.

4. No. the pre-paid SIM card can be used in many products and is therefore not a GST-free part of the medical aid described in your private binding ruling. It will not meet all the elements of subsection 38-45(1) of the GST Act.

5. No. The waterproof pouch can be used as a coin pouch by people without a disability, it is a generic part it is marketed and sold separately from the medical aid alert, as such will not meet all the elements of subsection 38-45(1) of the GST Act. The belt pouch is treated the same way is not GST-free.

Relevant facts and circumstances

• You carry on an enterprise and are registered for GST.

• You retail through direct selling.

• The medical aid is designed to be monitored remotely by family and friends.

Relevant legislative provisions

A New Tax System (Goods and Services Tax) Act 1999 section 38-45

A New Tax System (Goods and Services Tax) Act 1999 section 13-10 paragraph (b)

A New Tax System (Goods and Services Tax) Act 1999 Schedule 3

Reasons for decision

1. Subsection 38-45(1) of the GST Act provides that a supply is GST-free if it is a supply of a medical aid or appliance:

(a) covered by an item contained in Schedule 3 of the GST Act or specified in the regulations; and

(b) the thing supplied is specifically designed for people with an illness or disability, and is not widely used by people without an illness or disability.

Item 33 of Schedule 3 of the GST Act lists a 'medical alert' device as a medical aid or appliance.

The medical aid (FD) meets the first requirement of subsection 38-45(1) of the GST Act.

In addition, FD is designed for people with an illness or disability, and will not be widely used by people without an illness or disability. FD meets the second requirement of subsection 38-45(1) of the GST Act.

Therefore supplies of FD are GST-free.

2. Paragraph (b) of section 13-10 of the GST Act provides that an importation is a non-taxable importation if it would have been a supply that was GST-free or input taxed in Australia.

Therefore as the supply of the FD is GST-free in Australia, their importation is a non- taxable importation. As a consequence, there will not be a GST-free liability on the importation of the FD.

3. Section 105-60 of Schedule 1 to the TAA sets out the rules to apply in deciding whether an indirect tax ruling applies to you. Paragraphs 28-31 of Tax Ruling TR 2006/11 Private Rulings (TR 2006/11) explain who may apply for a private ruling and who is covered by it.

Your private binding ruling protects you from any tax shortfall plus penalties and interest based on the circumstances set out in the relevant facts of your private binding ruling. Paragraph 27 in TR 2006/11 states, the private ruling will identify the entity to whom it applies and the relevant provision to which it relates.

Where another entity is importing the same products and would like the protection that a private ruling provides, they will need to apply for private binding ruling.

Please refer to the fact sheet attached to this private ruling. It explains how your private binding ruling issued to you, protects you from underpaid net amounts or overpaid amounts of indirect tax when you rely on the Commissioner's interpretation of an indirect tax law. This private binding ruling does not provide the same protection to any other entity.

4. These products are generic, they are not specifically designed as a spare part for the GST-free medical aid outlined in section 38-45(2) of the GST Act. Generic spare parts are not GST-free. These products can be used in many devices, they are considered to be a generic spare part of the medical aid described in your private binding ruling. They are not specifically designed as a spare part for the GST-free medical alert aid outlined in section 38-45(2) of the GST Act. Generic spare parts will not be GST-free.

5. The waterproof pouch can be used as a coin pouch by people without a disability, it is a generic part and it is marketed and sold separately from the medical aid alert, as such it will not meet all the elements of subsection 38-45(1) of the GST Act. The belt pouch is treated the same way for GST purposes and is not a GST-free spare part.