GST and manual pressure infusers

Is the entity, a supplier of medical 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 manual pressure infusers?

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

The entity is a supplier of medical appliances. In this case, the entity is making a supply of manual pressure infusers.

The manual pressure infusers are used to infuse fluids, such as saline, into a patient. The infuser contains attached equipment to enable the infusion of fluids, at the desired pressure, with a one-hand operation. It contains a pressure relief valve and is supplied as a whole set for immediate use.

The manual pressure infusers are specifically designed for people with an illness or disability and 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 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.

The only item of relevance to this case is item 12 in the table in Schedule 3 to the GST Regulations (Item 12). Item 12 lists 'infusion sets'.

The phrase 'infusion sets' is not defined in the GST Act or GST Regulations.

Generally, where a phrase is not defined in the relevant Act or regulations, it is usually interpreted in accordance with its ordinary meaning, unless it has a special or technical meaning. Where a phrase has a special or technical meaning, it is necessary to determine its meaning by reference to the industry to which that phrase relates ( Herbert Adams Ltd v FCT (1932) 47 CLR 222). Steadman's Medical Dictionary (1999) defines the word 'infusion' to include, 'The introduction of fluid other than blood, e.g., saline solution, into a vein.'

In this instance the manual pressure infuser is a complete set to manually infuse fluids, including saline, into the patient. Therefore, the manual pressure infusion sets are specified at Item 12.

These manual pressure infusers are specifically designed for people with an illness or disability and not widely used by people without an illness or disability.

As such, the entity is making a GST-free supply under subsection 38-45(1) of the GST Act when it supplies manual pressure infusers.