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Edited version of your written advice
Authorisation Number: 1051297509775
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Date of advice: 20 October 2017
Ruling
Subject: GST and tactile alerting tiles
Question 1
Are you making a GST-free supply under subsection 38-45(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?
Answer
Yes.
Relevant facts and circumstances
You are registered for GST.
You sell tactile alerting devices.
The tactile alerting devices are designed to aid a person who is visually impaired.
The tactile alerting devices do not have an application other than to alert persons with visual or hearing impairment to impending hazards or to give guidance.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 subsection 38-45(1)
Reasons for decision
Under subsection 38-45(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), the 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 (Schedule 3), or specified in the A New Tax System (Goods and Services Tax) Regulations 1999 (GST Regulations);
● is specifically designed for people with an illness or disability; and
● is not widely used by people without an illness or disability.
Item 151 in the table in Schedule 3 (Item 151) lists 'auditory/tactile alerting devices'. The phrase 'auditory/tactile alerting devices' is not defined in the GST Act.
Accordingly, it is appropriate to examine the ordinary meaning of that phrase.
The Macquarie Dictionary (1997) defines 'auditory' to mean 'relating to hearing, or the sense of hearing...', 'tactile' to mean '1. of or relating to the organs or sense of touch. 2. perceptible to the touch...'; and 'alert' to mean '...4. an alarm or warning..'
Accordingly, it is considered that an auditory/tactile alerting device is a device which is designed to alert a visually impaired person to a strong occurrence, danger or presence through the person's sense of touch or hearing.
The tactile devices have a distinct raised surface and are used both inside and outside of buildings as tactile ground surface indicators alerting a visually or hearing impaired person to potential hazards, such as the presence of stairs or the need to change direction to avoid danger, through sensory contact with the devices. Therefore, the tactile alerting devices are considered a tactile alerting device and are covered by Item 151.
The tactile devices comply with Australian Standards for, 'Design for access and mobility - Tactile ground surface indicators for the orientation of people with vision or hearing impairment’ and do not have an application other than to alert persons with visual or hearing impairment to impending hazards or to give guidance.
They are a requirement to have them:
● in public areas for disability access points;
● on all commercial areas where ramps are installed.
Therefore the tactile alerting devices are specifically designed for people with an illness or disability and are not widely used by people without an illness or disability. Accordingly, the supply meets the remaining requirements of subsection 38-45(1) of the GST Act.
Therefore, you will be making a GST -free supply under subsection 38-45(1) of the GST Act when you supply tactile alerting devices that are designed to aid a person who is visually impaired.
Subsection 38-45(3) of the GST Act provides that a supply is not GST-free if the supplier and the recipient have agreed that the supply or supplies of a kind that include that supply, not be treated as GST-free supplies.