GST and hydro gel based advanced burn treatment products

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 hydro gel based advanced burn treatment product?

Yes, the entity is making a GST-free supply under subsection 38-45(1) of the GST Act when it supplies a hydro gel based advanced burn treatment product.

The entity is a supplier of medical aids and appliances. The entity supplies hydro gel based burn treatment products such as: • non-woven medical grade dressing soaked in sterile hydro gel (hydro gel based dressing). This product is designed for use in emergency first-aid treatment of burns and is available in different sizes and shapes including a facemask. • worsted wool cloth fire blanket soaked in hydro gel (hydro gel based fire blanket). This product is designed for use in serious emergencies to protect burn victims against airborne contamination and is placed on a burn wound to stabilise victims pending formal treatment.

Hydro gels are preparations whose bases usually consist of water, glycerol (glycerine) or propylene glycol gelled with suitable gelling agents such as tragacanth, starch, cellulose derivatives, carboxyvinyl polymers and magnesium-aluminium silicates. Hydro gels provide optimal circumstances for wound healing.

The entity's products are used primarily to treat burns and are specifically designed for burns victims. The products are not widely used by people without an illness or disability.

There is no agreement between the entity and the recipient of the supply 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 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 (GST Regulations) • is specifically designed for people with an illness or disability, and • is not widely used by people without an illness or disability.

Paragraph (c) of item 1 in subsection 38-45.01(1) of the GST Regulations (paragraph (c) item 1) lists 'hydro gel'.

The entity's products, hydro gel soaked dressings and blankets, consist primarily of hydro gel and fall within paragraph (c) item 1. As such, these products satisfy the first requirement under subsection 38-45(1) of the GST Act.

The entity's products are used primarily to treat burns and are specifically designed for burns victims. The products are not widely used by people without an illness or disability. Therefore, the remaining requirements in subsection 38-45(1) of the GST Act are met.

The entity is making a GST-free supply under subsection 38-45(1) of the GST Act when it supplies a hydro gel based advanced burn treatment product.

Date of Amendment Part Comment 26 September 2025 Throughout Updated A New Tax System (Goods and Services Tax) Regulations 1999 to A New Tax System (Goods and Services Tax) Regulations 2019 . Reasons for decision Removed the reference to The GST Pharmaceutical Health Forum - Issues Register - Attachment B as this has been withdrawn. Other Note added

Date of Amendment | Part | Comment

26 September 2025 | Throughout | Updated A New Tax System (Goods and Services Tax) Regulations 1999 to A New Tax System (Goods and Services Tax) Regulations 2019 .

Reasons for decision | Removed the reference to The GST Pharmaceutical Health Forum - Issues Register - Attachment B as this has been withdrawn.

Other | Note added