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Edited version of your written advice
Authorisation Number: 1051185625933
Date of advice: 6 February 2017
Ruling
Subject: Goods and services tax and medical alert devices
Question
Is the entity making a GST-free supply under subsection 38-45(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it supplies medical alert devices designed for people with specific medical conditions?
Answer
Yes, the entity is making a GST-free supply under subsection 38-45(1) of the GST Act when it supplies medical alert devices designed for people with specific medical conditions.
Summary
Detailed reasoning
Under subsection 38-45(1) of the GST Act the supply of a medical aid or appliance is GST-free if:
● it 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 (Regulations); and
● it is specifically designed for people with an illness or disability; and
● it is not widely used by people without an illness or disability.
Item 33 in the table in Schedule 3 (Item 33) specifies 'medical alert' devices. It is considered that a medical alert device is a device that is designed for the purpose of alerting medical/caring personnel or an ambulance service that a person is in need of emergency medical assistance or that the person has a medical condition that may require specific treatment.
The entity's medical alert device will fall within the meaning of Item 33.
Further, the entity's medical alert devices are specifically designed for people with an illness or disability and are not widely used by people without an illness or disability. Therefore, the entity is making a GST-free supply under subsection 38-45(1) of the GST Act when it supplies medical alert devices designed for people with specific medical conditions.
Relevant facts and circumstances
The entity is a wholesaler and online retailer of medical alert devices.
The medical alert devices are specifically designed for people with disabilities or illness that range from ABC to XYZ (the range of disabilities and illnesses listed here are not exhaustive).
The medical alert devices have the wearer's medical condition or allergy printed or engraved on it. The medical alert device alerts the relevant authorities that the person wearing the item has a specific medical condition and therefore may require a specific treatment.
The medical alert devices are not widely used by people without an illness or disability.
There is no agreement between the entity and the recipient of the supply that the supply will not be treated as a GST-free supply.
The entity is registered for goods and services tax (GST).
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999
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
A New Tax System (Goods and Services Tax) Act 1999 Schedule 3 table item 33
A New Tax System (Goods and Services Tax) Regulations 1999