GST and pelvic floor muscle exercise device

Is the entity, a supplier of medical aids and appliances, 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 pelvic floor muscle exercise device designed to help women with stress incontinence?

Yes, the entity is making a GST-free supply under subsection 38-45(1) of the GST Act when it supplies a pelvic floor muscle exercise device designed to help women with stress incontinence.

The entity is a supplier of medical aids and appliances. In this case, the entity supplies a pelvic floor muscle exercise device.

The pelvic floor muscle exercise device is designed to help women with stress incontinence which is brought about by an overall weakness in the pelvic floor muscles.

The device comprises a number of vaginal cones and a set of weights.

Once the weighted vaginal cone is inserted, the pelvic floor muscles automatically contract to keep the cone in place. This reflex action exercises and strengthens the pelvic floor muscles. The improvement in pelvic muscle tone, which usually takes up to 12 weeks to be realised, results in greater bladder control.

In this case, the pelvic floor muscle exercise device is specifically designed for people with an illness or disability and is not widely used by people without an illness or disability.

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).

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 (Regulations); and • is specifically designed for people with an illness or disability; and • is not widely used by people without an illness or disability.

The only item of relevance to this case is item 20 in the table in Schedule 3 (Item 20). Item 20 lists 'incontinence appliances'.

The pelvic floor muscle exercise device is designed to help women with stress incontinence, and as such, is considered to be an incontinence appliance for the purposes of Item 20.

Additionally, the pelvic floor muscle exercise device is specifically designed for people with an illness or disability and is not widely used by people without an illness or disability. As such, the requirements of subsection 38-45(1) of the GST Act are satisfied.

Therefore, the supply of the pelvic floor muscle exercise device designed to help women with stress incontinence, is GST-free under subsection 38-45(1) of the GST Act.

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 .