GST and supply of a table with a tilt function

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 table that has a tilt function?

Yes, the entity is making a GST-free supply under subsection 38-45(1) of the GST Act when it supplies a table that has a tilt function.

The entity is a supplier of medical aids and appliances. The entity supplies a table that has a tilt function. The entity supplies the table to hospitals, private practitioners and occasionally to individuals for home use.

The table has a top with a mechanism that allows the top to tilt from horizontal to vertical and at required points in between. The function of the table is such that a patient is able to walk on and walk off safely when the table is at a full vertical tilt. The table is designed for providing physical therapy to patients.

The table 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 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 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) • is specifically designed for people with an illness or disability, and • is not widely used by people without an illness or disability.

Item 19 in the table in Schedule 3 to the GST Regulations (Item 19) lists 'tilt tables'. The term 'tilt table' is not defined in the GST Act. Where a term is not defined in the relevant Act, it takes on its ordinary meaning, unless the term has a special or technical meaning. Where a term has a special or technical meaning, it is necessary to determine its meaning by reference to the industry to which that term relates ( Herbert Adams Pty Ltd v. Federal Commissioner of Taxation (1932) 47 CLR 222; (1932) 2 ATD 31).

Given the context in which the term 'tilt table' appears, the term is considered to have a special or technical meaning. The Stedman's Medical Dictionary (2000), 27th edition, Lippincott Williams & Williams, Baltimore, defines a 'tilt table' as: a table with a top capable of being rotated on its transverse axis so that a patient lying upon it can be brought into the erect position as desired; used in experimental investigations and in physical therapy.

The table that the entity supplies has a top with a mechanism that allows the top to provide a tilt function from horizontal to vertical and at required points in between. The table is generally used for providing physical therapy to patients and the tilt function enables a patient to walk on and walk off safely when the table is at a full vertical tilt. As such, the table falls within the definition of a 'tilt table' and is covered by Item 19.

In addition, the table is designed for people with an illness or disability and is not widely used by people without an illness or disability. Therefore, the entity is making a GST-free supply under subsection 38-45(1) of the GST Act when it supplies a table that has a tilt function.