TAXATION RULING NO. ST 2417

ST 2417

SALES TAX : MEDICAL BODY SPLINT AND SUPPORT

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FOI status:

PREAMBLE

This Ruling considers the sales tax classification of a product for use in various forms as a medical splint and support.

2. Item 41 in the First Schedule to the Sales Tax (Exemptions and Classifications) Act exempts from sales tax surgical instruments and appliances (and parts therefor) and surgical materials, being instruments, appliances or materials which are of a kind:

.

sold exclusively or principally by manufacturers or distributors of such instruments, appliances and materials; and

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used exclusively or principally in hospitals or by medical practitioners, optometrists or persons registered as physiotherapists under a law of a State or Territory of the Commonwealth.

FACTS

3. The goods in question are made from polyvinylalcohol material for use as medical splinting for injured human beings. They are used for the same purposes as casts made from plaster of Paris. The goods are available in a range of shapes and sizes as splints and pre-formed arm, leg and other body shells. Sales are to be made principally to health departments, hospitals and medical practitioners.

4. The material is placed in a steamer until it becomes soft and ready for moulding. It is then shaped to fit to the injured part of the body while kept in place by an elastic bandage. Several minutes after coming out of the steamer the material regains its rigidity and retains its moulded shape.

RULING

5. The product is a surgical material of a kind covered by item 41, First Schedule, and is therefore exempt from sales tax.

COMMISSIONER OF TAXATION
6 June 1988

References

ATO references:
NO 1.88/2191-7

Date of effect:
Immediate

Subject References:
MEDICAL BODY SPLINT AND SUPPORT

Legislative References:
SALES TAX (EXEMPTIONS AND CLASSIFICATIONS) ACT; ITEM 41, FIRST SCHEDULE