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Edited version of your written advice
Authorisation Number: 1051485912573
Date of advice: 01 March 2019
Ruling
Subject: GST and importation of medical devices
Question
Are the importations of Device A and Device B non-taxable importations under section 13-10 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?
Answer
Yes, the importations of Device A and Device B are non-taxable importation under section 13-10 of the GST Act.
The scheme commences on:
1 January 2019
Relevant facts and circumstances
This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling.
You are not registered for GST.
In early 20XX, you imported two Robotic machinery devices, Device A and Device B, for the purpose of your rehabilitation.
You provided information about the products that are available from the supplier’s website.
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 13-15
A New Tax System (Goods and Services Tax) Act 1999 section 38-45
A New Tax System (Goods and Services Tax) Act 1999 section 195-1
A New Tax System (Goods and Services Tax) Act 1999 Schedule 3
Reasons for decision
Detailed reasoning
All legislative references are to the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) unless otherwise stated.
GST is payable on any ‘taxable importation’ that you make regardless of whether the importer is registered for GST.
Under section 13-10 of the GST Act, an importation is a non-taxable importation if:
(a) it is a non-taxable importation under Part 3-2; or
(b) it would have been a supply that was *GST-free or *input taxed if it had been a supply.
Note that *asterisk denotes a defined term in section 195-1.
Under subsection 38-45(1) of the GST Act, a supply is GST-free if:
(a) it is covered by Schedule 3 (medical aids and appliances), or specified in the regulations; and
(a) 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.
Of relevance, item 70 and item 102 of Schedule 3 list ‘upper limb orthoses’ and ‘specialised ambulatory orthoses’ as medical aids and appliances respectively for the purposes of paragraph 38-45(1)(a).
The word ‘orthoses’ is not defined in the GST Act and accordingly takes its ordinary meaning.
The Macquarie Dictionary (2019 online version) defines orthosis (the singular of the word ‘orthoses’) as ‘a device applied to the body to modify position or motion, as a supporting collar, plaster cast, etc.’
Device A
Item 102, ‘Specialised ambulatory orthoses’, is an orthosis which has an additional specialised character or function, or has been made or adapted to the specific illness or disability of a person, for the purpose of enabling that person to be capable of walking.
The features of Device A meet the definition of ‘specialised ambulatory orthoses’. It is specifically designed for use by people with restricted walking movement and would not be widely used by people without an illness or disability.
Device B
Item 70, ‘Upper limb orthoses’, is a device designed to be applied to the body to change or alter position or motion, or prevent movement of the shoulder, arm, forearm, wrist or hand for the treatment of an illness or disability to that shoulder etc.
Device B is a device that fits the definition of ‘upper limb orthoses’ for the purpose of Schedule 3. It is also specifically designed for use by people with an illness or disability and would not be widely used by people without an illness or disability.
Conclusion
The supplies of Device A and Device B satisfy the requirements of a GST-free medical aid and appliance under subsection 38-45(1). Therefore, your importations of Device A and Device B are non-taxable under paragraph 13-10(b) and GST is not payable on these importations.