Date of advice: 28 October 2021

Edited version of private advice

Authorisation Number: 1051909616932

Date of advice: 28 October 2021

Ruling

Subject: GST and breast pumps

Question

Are breast pumps (electric and manual) GST-free under Division 38 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?

Are the parts for breast pumps (for example valves, tubing and back flow protectors) GST-free under Division 38 of the GST Act?

Answer

No, the breast pumps are not GST-free under Division 38 of the GST Act.

No, the parts for breast pumps are not GST-free under Division 38 of the GST Act.

Relevant Facts and Circumstances

You are registered as a nurse and a midwife with the Nursing and Midwifery Board. You are registered for GST. You supply lactation services and midwifery services such as post-natal care to mothers and baby. Whilst providing lactation services you also supply breast feeding pumps and parts for the breastfeeding pumps to allow mothers to be able to increase or maintain their milk supply.

The parts you sell for the breast feeding pump includes valves (which creates the vacuum), tubing and back flow protectors which prevents moisture and milk from getting into the pump and any parts that may increase the efficiency and/or comfort of using the breast pump. You also sell nipple shields that may allow a mother to feed her baby directly on the breast and limit and prevent damage to the breast.

Relevant legislative provisions

A New Tax System (Goods and Services Tax) Act 1999 subsection 38-45(1)

A New Tax System (Goods and Services Tax) Act 1999 subsection 38-10(3)

Reasons for Decision

Breast feeding pump

Under subsection 38-45(1) of the GST Act, a supply of a medical aid or appliance is GST-free if:

• it is listed in Schedule 3 to the GST Act or Schedule 3 to the A New Tax System (Goods and Services Tax) Regulations 2019 (GST Regulations),
• it is specifically designed for people with an illness or disability, and
• it is not widely used by people without an illness or disability.

All the above requirements need to be satisfied for a medical aid or appliance to be GST-free.

Schedule 3 to the GST Act lists 158 items and Schedule 3 to the GST Regulations lists 13 items. There are no items in Schedule 3 to the GST Act or Schedule 3 to the GST Regulations that lists breast feeding pumps or anything similar. As such, the supply of breast feeding pumps are not GST-free under subsection 38-45(1) of the GST Act.

Under subsection 38-10(3) of the GST Act, a supply of goods is GST-free if:

1. it is made to a person in the course of supplying to the person a service, the supply of which is GST-free under subsection 38-10(1) of the GST Act, and
2. it is made at the premises at which the service is supplied.

A nursing service is GST-free under subsection 38-10(1) of the GST Act provided you are a recognised professional in relation to nursing and the treatment you provide is generally accepted in the nursing profession as being appropriate treatment for a patient.

Therefore, if you are supplying a GST-free nursing service and during that service, at the same premises whereby you provide the nursing service, you also supply a breast feeding pump - it needs to be determined if the breast feeding pump is supplied in the course of supplying the nursing service.

The phrase 'in the course of supplying to the person a service' in the context of subsection 38-10(3) of the GST Act is interpreted to require that the goods are supplied at the same point in time as the GST-free health service. In addition, the goods will have to have been either:

• customised or manipulated for the exclusive treatment of the illness or disability of the particular patient who is the recipient of the GST-free nursing service, or
• necessarily utilised as an integral part of the patient's treatment required immediately during that specific consultation.

For example, a podiatrist may supply a customised orthotic to fit perfectly the foot of a patient and they supply the orthotic during the GST-free podiatry service. In that case, the supply of the orthotic would be supplied 'in the course of' the GST-free podiatry service. However, a generic orthotic that is taken off the shelf and supplied to the patient would not be GST-free.

An example of a good that would be 'necessarily utilised as an integral part of a patient's treatment' would be where a patient attends a GST-free physiotherapy service and the physiotherapist tapes the patient's ankle and charges them for the tape that was used - the supply of that tape would be GST-free. However, if the physiotherapist then supplies the patient with a roll of tape that they don't utilise at the service, the supply of that tape is not GST-free.

In regard to the breast feeding pumps, these are not customised or manipulated for the particular patient. They are also not a good that is used up during the GST-free nursing service. Whilst the nurse may provide instruction and assistance during the GST-free nursing service on how to use the breast pump, it is not used up at that service like tape or a bandage would be. It has continual use after the service. As such, the supply of the breast feeding pump is not GST-free under subsection 38-10(3) of the GST Act. The supply of the breast pump is a taxable supply under section 9-5 of the GST Act.

Parts for a breast feeding pump

The parts for breast pumps, for example valves, tubing and back flow protectors are not separately listed in Schedule 3 to the GST Act or Schedule 3 to the GST Regulations. Spare parts for GST-free medical aids and appliances can be GST-free under subsection 38-45(2) however in this case the supply of the breast pump is a taxable supply therefore the supply of any spare parts for the breast pump are also a taxable supply.

Note - this ruling is made based on the fact that you are registered under the Nursing and Midwifery Board as a registered nurse. If this changes, the assumption that the services you supply are GST-free may be different.