Issue
Is the entity, a supplier of wheelchair accessories, 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 a wheelchair cushion?
Decision
Yes, the entity is making a GST-free supply under subsection 38-45(1) of the GST Act when it supplies a wheelchair cushion.
Facts
The entity is a supplier of wheelchair accessories. The entity supplies a product that is marketed as a wheelchair cushion.
The wheelchair cushion is shock absorbent and therefore, prevents back injury due to excessive jolting and jarring for people confined to wheelchairs or for people who need to use scooters to aid their mobility.
There is no agreement between the entity and the recipient that the supply will not be treated as a GST-free supply.
The entity is registered for goods and services tax (GST).
Reasons for Decision
Under subsection 38-45(1) of the GST Act, the supply of certain medical aids and appliances 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 (Regulations); • is specifically designed for people with an illness or disability; and • is not widely used by people without an illness or disability.
Item 106 in the table in Schedule 3 (Item 106) lists 'accessories associated with wheelchairs, motorised wheelchairs, scooters, tricycles, spinal carriages and other goods for the carriage of people with disabilities'.
In this case, the wheelchair cushion is shock absorbent to prevent back injury for people confined to wheelchairs or for people who need to use scooters to aid their mobility. Therefore, it is considered that the wheelchair cushion is an accessory associated with wheelchairs and scooters and therefore, comes within the scope of Item 106.
Furthermore, as the wheelchair cushion is designed to assist people using wheelchairs or scooters, it is considered that the wheelchair cushion is specifically designed for people with an illness or disability and not widely used by people without an illness or disability. Accordingly, the supply of the wheelchair cushion satisfies the requirements in subsection 38-45(1) of the GST Act.
Therefore, the entity is making a GST-free supply under subsection 38-45(1) of the GST Act when it supplies a wheelchair cushion.
Amendment History
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 .