| Disclaimer You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of private advice
Authorisation Number: 1051779883716
Date of advice: 12 November 2020
Ruling
Subject: GST and the supply of Uconnect audio devices
Question
Is the supply of a device used to assist a person with a hearing impairment GST-free under subsection 38-45(1) of the A New Tax System (Goods and Services) Tax Act 1999 (GST Act)?
Answer
Yes, the supply of a device used to assist people with a hearing impairment is GST-free under subsection 38-45(1) of the GST Act.
Relevant facts and circumstances
Entity A (you) are registered for GST. You supply a range of devices to assist hearing impaired people.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 section 38-45
A New Tax System (Goods and Services Tax) Regulations2019 section 38-45.01
Reasons for decision
Under subsection 38-45(1) of the GST Act, the supply of certain medical aids and appliances will be 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 2019 (GST Regulations); and
• is specifically designed for people with an illness or disability; and
• is not widely used by people without an illness or disability.
Item 11 of Schedule 3 to the GST Regulations (item 11) lists 'hearing loops'. The term 'hearing loop' is not defined in the GST Act. However, ATO Interpretative Decision, ATO ID 2001/139, provides the ATO view on the meaning of the term 'hearing loop' for the purposed of the GST Act.
ATO ID 2001/139 states that from the accepted industry definitions of these hearing systems, it is considered that the term 'hearing loop' refers to the integral components of a system that transforms a voice into a current or signal and either transmits it directly to a receiver worn by the listener, or induces a corresponding current within a loop receiver or hearing aid equipped with a 'T' or telecoil circuit. Other types of hearing loops include infra-red or frequency modulation (FM) hearing loops that operate either by transmitting an infra-red or FM signal that is picked up by a receiver used by the deaf or hearing impaired person.
Based on the information provided, the devices you supply fall within the meaning of 'hearing loops' in item 11.
As the device is specifically designed for people with an illness or disability and is not widely used by people without an illness or disability, the supply of the device is a GST-free supply under subsection 38-45(1) of the GST Act.