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Edited version of your written advice
Authorisation Number: 1012925498568
Date of advice: 9 December 2015
Ruling
Subject: GST and the supply of modifications to motor vehicles to assist mobility impaired.
Question
Are you, an importer of specified appliances, making a taxable importation under section 13-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when you import these appliances.
Answer
No
Relevant facts and circumstances
You are registered for GST. You import specified appliances. Each of these products is specifically designed for people with disabilities.
You provided a description of the products and referred us to various pamphlets. These products are set out below.
1 Aid No 1
a. Is designed to make getting into and out of cars easier for those with mobility issues
b. Does not require modifications to be made to the vehicle
c. Slides into the door latch when the door is open and
d. Is rated to X lbs.
2 Aid No 2:
a. Is designed to make getting out of the car safely and securely for those with mobility issues.
i. It inserts into the vehicle door frame. This creates an instant easy to operate support arm for exiting the vehicle
ii. The product allows the user to move easily from a seated position to a standing position.
b. It also includes a seatbelt cutter for use in emergencies and
c. A component to be used to break windows in an emergency to enable people trapped inside a car to get out.
3 Aid No 3
a. Is designed to make getting into and out of cars easier for those with mobility issues.
b. Attaches to the frame of the car door to enable individuals to pull themselves out of a car.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 Section 13-5
A New Tax System (Goods and Services Tax) Act 1999 Section 13-10
A New Tax System (Goods and Services Tax) Act 1999 Section 38-45 and
A New Tax System (Goods and Services Tax) Act 1999 Item 58 of Schedule 3 to the GST Act
Reasons for decision
In this reasoning, unless otherwise stated,
• all legislative references are to the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)
Section 13-5 provides that an entity makes a taxable importation if:
• goods are imported goods; and
• the entity enters the goods for home consumption within the meaning of the Customs Act 1901.
However, an importation is not a taxable importation to the extent that it is a non-taxable importation. You are importing the appliances for home consumption within the meaning of the Customs Act 1901. Therefore, the positive requirements of section 13-5 are met.
Under section 13-10, an importation is a non-taxable importation if:
• it is a non-taxable importation under Part 3-2, or
• it would have been a supply that was GST-free or input taxed if it had been a supply.
To determine whether the appliances that you are importing would be GST-free we need to look at subsection 38-45(1). Under subsection 38-45(1), the supply of certain medical aids or 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)
• specifically designed for people with an illness or disability and
• not widely used by people without an illness or disability.
Item 58 in the table in Schedule 3 deals with modifications to motor vehicles to assist the mobility of people with disabilities. The term modifications is not defined in the GST Act, however, it was discussed in the Administrative Appeals Tribunal case Snugfit Australia Pty Ltd and Federal Commissioner of Taxation [2013] AATA 802. This case considered whether the supply of a product was covered by item 82 "night-time positioning equipment modifications' the product was a pillow which modified the night time positioning equipment which was considered to be the bed.
JW Constance, (Deputy President) stated:
The product modifies the shape of a mattress, which is "night time positioning equipment", to accommodate the particular requirement of a person with a disability.
Your products modify the vehicle such that mobility impaired individuals can use them to assist them to exit the vehicle. Therefore, on this basis, all 3 items are considered to be modifications to motor vehicles. Although Aid No 2 has other uses, these are considered incidental to the main use of assisting a disable person into and out of a vehicle.
The items are designed for people with disabilities. Further, although they can be used by people without disabilities they are not widely used by them. As such, the products satisfy the requirements of subsection 38-45(1) of the GST Act.
Therefore, you are not making taxable importations of any of the 3 specified items.