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Is the entity, a builder, making a GST-free supply under subsection 38-45(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it constructs a lift shaft for a wheelchair lift?

No, the entity is not making a GST-free supply under subsection 38-45(1) of the GST Act when it constructs a lift shaft for a wheelchair lift. The entity is making a taxable supply under section 9-5 of the GST Act.

The entity is a builder. The entity constructs a lift shaft for a wheelchair lift that is to be used by a disabled person. The disabled person contracts with a separate supplier for the purchase and installation of the actual wheelchair lift.

The entity does not receive any form of government funding in relation to the supply.

The entity is registered for goods and services tax (GST). The supply of the construction services satisfies the other positive limbs of section 9-5 of the GST Act.

Under subsection 38-45(1) of the GST Act, a supply of a medical aid or appliance is GST-free if 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); and • is specifically designed for people with an illness or disability; and • is not widely used by people without an illness or disability.

None of the medical aids or appliances specified in the GST Regulations are relevant to this case. Only item 57 in the table in Schedule 3 (Item 57) is relevant.

Item 57 lists 'electric/hydraulic wheelchair lifting devices'.

In this instance, the entity is supplying the construction of a lift shaft. The entity is not supplying the lift itself. The lift shaft is not an 'electric/hydraulic wheelchair lifting device'. Although the construction of the lift shaft is necessary for the installation of the actual lift, a lift shaft, as a supply separate from the supply of the lift, is not covered by Item 57. Therefore, the entity is not making a GST-free supply under subsection 38-45(1) of the GST Act.

In addition, as the entity does not receive any form of government funding in relation to the supply, the supply is not GST-free under any other provision of Division 38 of the GST Act.

The entity is registered for GST and the supply meets the other positive limbs of section 9-5 of the GST Act. Furthermore, the supply is neither GST-free under Division 38 of the GST Act nor input taxed under Division 40 of the GST Act. Therefore, the entity is making a taxable supply under section 9-5 of the GST Act when it constructs a lift shaft for a wheelchair lift.