GST and hospital bed mattresses as pressure management devices

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 hospital bed mattress that has an in-built layer of convoluted egg crate foam?

Yes, the entity is making a GST-free supply under subsection 38-45(1) of the GST Act when it supplies a hospital bed mattress that has an in-built layer of convoluted egg crate foam.

The entity is a supplier of medical aids and appliances. The entity supplies a hospital bed mattress that has an in-built layer of convoluted egg crate foam. The convoluted egg crate foam assists in the even distribution of pressure for patients who may be lying down for prolonged periods, such as patients in a hospital setting.

The mattresses have a PVC cover to prevent penetration of fluids. The cover is either welded shut or may have a zip allowing the cover to be removed. Those mattresses with a zip have a flap over the zip. The mattresses are specifically designed to fit hospital beds and are predominately used in hospitals and nursing homes.

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 2019 , • is specifically designed for people with an illness or disability, and • is not widely used by people without an illness or disability.

Item 66 in the table in Schedule 3 (Item 66) lists 'pressure management mattresses and overlays'. A mattress will be a 'pressure management mattress' where it is designed to provide comfort and prevent bed sores by evenly distributing the pressure exerted by the mattress on the patient's body.

The entity is supplying a hospital bed mattress that has an in-built layer of convoluted egg crate foam forming part of the mattress. The egg crate foam assists in the even distribution of pressure for patients who may be lying down for prolonged periods, such as patients in a hospital setting. As such, the entity's hospital bed mattress is a pressure management mattress, covered by Item 66.

The entity's mattresses have a PVC cover which is either welded or has a covered zip, to prevent bodily fluids from permeating the mattress. The mattresses are designed to fit specifically onto hospital type beds and are predominately used in hospitals and nursing homes where patients may be lying down for prolonged periods. Therefore, the shape and construction of the mattresses are such that the entity's mattresses 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 a hospital bed mattress that has an in-built layer of convoluted egg crate foam.

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 .