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Is the entity, a supplier of computer equipment, 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 supplies an alternative joystick?

Yes, the entity is making a GST-free supply under subsection 38-45(1) of the GST Act when it supplies an alternative joystick.

The entity is a supplier of computer equipment. The entity supplies an alternative joystick. The alternative joystick is a substitute for a standard mouse designed for people who, due to their disability, are unable to use their hands. The joystick is controlled by the mouth or chin and is activated by a sip/puff switch.

The joystick is not widely used by people without an illness or disability. There is no agreement between the entity and the recipient that the supply is not to be treated as a GST-free supply. The entity is registered for goods and services tax (GST).

Under subsection 38-45(1) of the GST Act, the supply of a medical aid or appliance is 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); • 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 (Item 11) lists 'mouth/head sticks/pointers'. The entity is supplying an alternate joystick designed to be controlled by a person's mouth or chin and is activated by a sip/puff switch. This falls within the description of a mouth/head stick in Item 11. Therefore, the alternative joystick is covered by Schedule 3.

The alternative joystick is designed for people that are unable to use their hands due to their disability. Therefore it is designed for people with an illness or disability. In addition, the joystick is not widely used by people without an illness or disability. Accordingly, the requirements in subsection 38-45(1) of the GST Act are met.

Therefore, the entity is making a GST-free supply under subsection 38-45(1) of the GST Act when it supplies an alternative joystick.

Date of Amendment Part Comment 9 April 2019 Throughout Updated A New Tax System (Goods and Services Tax) Regulations 1999 to A New Tax System (Goods and Services Tax) Regulations 2019 .

Date of Amendment | Part | Comment

9 April 2019 | Throughout | Updated A New Tax System (Goods and Services Tax) Regulations 1999 to A New Tax System (Goods and Services Tax) Regulations 2019 .