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Edited version of private advice
Authorisation Number: 1051908733374
Date of advice: 13 October 2021
Ruling
Subject: GST and health
Question
Is your supply of the Grab Rail for use in commercial settings by people with illness or disability 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.
Subsection 38-45(1) of the GST Act provides that the supply of a medical aid or appliance is GST-free where the medical aid or appliance:
• is covered by Schedule 3 (medical aids and appliance), or specified in the 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 121 in the table in Schedule 3 (Item 121) lists 'toilets supports'.
A pull-down grab rail may possess the characteristics of a toilet support and be identifiable as a toilet support either at the point of manufacture or, in the case of a generic grab rail at the point of installation in a toilet area. A toilet grab rail is covered by Item 121 if it has the characteristics of, and is identifiable as being a toilet support when it is supplied.
In this case the Grab Rail you supply is specifically designed for use by people with an illness or disability and is not widely used by people without an illness or disability. As such it satisfies the requirements of subsection 38-45(1) of the GST Act. Therefore, the supply of the Grab Rail will be GST-free.
This ruling applies for the following period:
1 October 20XX till quarter ending 31 December 20XX
The scheme commences on:
1 October 20XX
Relevant facts and circumstances
You carry on an enterprise and are registered for GST.
You supply a product which is a 'Pull Down Grab Rail' which is designed for people with an illness or disability.
The Grab Rail is not designed to be widely used by people without an illness or disability.
The Grab Rail is primarily used in commercial settings such as hospitals and ages care homes.
The Grab Rail may not meet the requirements under AS1428.1.2021 as it is a pull-down model and not a non-movable fixture, however it is yet to be assessed against this standard/requirement.
The description of the scheme is also based on the product specification sheet of the Grab Rail together with the 'Installation Guidelines Sheet' which has been provided as part of the private ruling request.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 subsection 38-45(1)