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Is your importation of the product a taxable importation under section 13-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?

No. Your importation of the product is not a taxable importation under section 13-5 of the GST Act, rather it is a non-taxable importation under section 13-10 of the GST Act.

You are in the business of retailing therapeutic goods and are registered for goods and services tax (GST). You imported a mobility and assistive aid (product) designed to support individuals with limited mobility, including elderly persons and people with mobility impairments. It is not marketed as a general lifestyle or recreational product. You have approval from the Australian Register of Therapeutic Goods Administration for the supply of the product.

A New Tax System (Goods and Services Tax) Act 1999 section 13-5 A New Tax System (Goods and Services Tax) Act 1999 section 13-10 A New Tax System (Goods and Services Tax) Act 1999 section 38-45 A New Tax System (Goods and Services Tax) Act 1999 section 42-5 A New Tax System (Goods and Services Tax) Regulations 2019 section 38-45.01 Customs Act 1901 Customs Tariff Act 1995

All legislative references are to the GST Act, unless otherwise stated. GST is payable on imported goods where the importation of the goods is a taxable importation. Taxable importation Section 13-5 provides that you make a taxable importation when goods are imported and you enter the goods for home consumption (within the meaning of the Customs Act 1901 ). However, the importation is not a taxable importation to the extent that it is a non-taxable importation. Non-taxable importation Section 13-10 provides that an importation is a non-taxable importation if: 1)            it is a non-taxable importation under Part 3-2 (Division 42) or 2)            it would have been a supply that was GST-free or input taxed if it had been a supply. Division 42 Division 42 is summarised in Appendix B of Goods and Services Tax Ruling GSTR 2003/15: importation of goods into Australia . Appendix B provides a list of items and a brief description of the items listed in subsection 42-5(1) which relates to non-taxable importations of goods covered by items in Schedule 4 to the Customs Tariff Act 1995.

Your importation of the product does not satisfy the requirements of any of the items in Division 42. Accordingly, the first item in section 13-10 is not satisfied to make the importation of the product a non-taxable importation. GST-free or input taxed supply An importation is also a non-taxable importation to the extent that, had it been a supply, the supply would have been a GST-free or input taxed supply. There are no provisions in the GST Act that would make the supply of the product an input taxed supply. Subsection 38-45(1) identifies the circumstances in which a supply of medical aids and appliances is GST-free. It essentially has three elements, all of which must be satisfied before the supply can be GST-free. The medical aid or appliance must be: •                     covered by Schedule 3 or specified in the A New Tax System (Goods and Services Tax) Regulations 2019 (GST Regulations) •                     specifically designed for people with an illness or disability, and •                     not widely used by people without an illness or disability. Your product is not specified in Schedule 3 or in the GST Regulations.

However, Item 98 in the table in Schedule 3 lists walking frames - standard adult under the category of Mobility of people with disabilities - physical: walking aids that are considered medical aid and appliances. Table 1:Schedule 3 Medical aids and appliances Item Category Medical aids or appliances 98 Mobility of people with disabilities - physical: walking aids Walking frames - standard adult Your product is covered by Item 98 in Schedule 3 as it is a type of walking frame and it is specifically designed for people with an illness or disability. In addition, GSTD 2021/2 adjustable beds, pressure management mattresses and pressure management overlays states that, as the phrase 'not widely used' is not defined in the GST Act, it takes its ordinary meaning having regard to the context in which it appears. In the context of subsection 38-45(1), we consider 'not widely used' to mean not used by many people who do not have an illness or disability. As your product is a device that provides support and assists a person with limited mobility, it is a product that is not used by many people without an illness or disability.

As all the requirements under subsection 38-45(1) are satisfied, the supply of the product is a GST-free supply of a medical aid or appliance. Consequently, the second requirement under section 13-10 is satisfied and we determine your importation of the product is a non-taxable importation under section 13-10.