GST-free Supply (Health Goods) Determination 2004
I, ToNY ABBOTT, Minister for Health and Ageing, make this Determination under paragraph 177-10(4)(b) of the A New Tax System (Goods and Services Tax) Act 1999.
Dated 4/8/2004
Tony Abbott
Minister for Health and Ageing
1 Name of Determination
This Determination is the GST-free Supply (Health Goods) Determination 2004
2 Commencement
This Determination commences on 6 August 2004.
3 Definition
In this Determination:
Act means the A New Tax System (Goods and Services Tax) Act 1999.
Note: The following expressions that are used in this Determination are defined in the Act:
Australian Register of Therapeutic Goods means the register established under section 9A of the Therapeutic Goods Act 1989.
4 GST-free supplies
For subsection 38-47(1) of the Act, the supply of goods of the kind described in an item in Schedule 1 is GST-free if, under the Therapeutic Goods Act 1989, the goods are required to be included in the Australian Register of Therapeutic Goods, or are goods in a class of goods required to be included in the Australian Register of Therapeutic Goods.
5 Revocation of GST-free Supply (Health Goods) Determination 2000 (No 2)
The GST-free Supply (Health Goods) Determination 2000 (No 2) is revoked from 6 August 2004.
Schedule 1 Health goods the supply of which may be GST-free
Item | Health goods |
1 | Condoms |
2 | Barrier dams, femidoms and harness devices |
3 | Personal and surgical lubricants that: (a) are water-soluble; and (b) are suitable for use with condoms |
4 | Preparations for use by humans: (a) that contain folic acid as a single active ingredient; and (b) have a recommended daily dose of 400 to 500 micrograms |
5 | Sunscreen preparations for dermal application that: (a) are marketed principally for use as sunscreen; and (b) have a sun protection factor rating of 15 or more |
6 | Nicotine for use as an aid in withdrawal from tobacco smoking where: (a) the nicotine is administered in preparations for transdermal use; or (b) the nicotine is administered through chewing gum; or (c) the nicotine is administered through a lozenge. |
Overview
The GST-free Supply (Health Goods) Determination 2004 was enacted to address a specific gap in the taxation of health goods under the A New Tax System (Goods and Services Tax) Act 1999. This legislative instrument was made by Tony Abbott, the Minister for Health and Ageing, and it commenced on 6 August 2004. The primary objective of this Determination is to exempt certain health goods from the Goods and Services Tax (GST), ensuring that these essential products remain affordable for consumers. Specifically, it aims to provide a GST-free status to goods that are mandated to be included in the Australian Register of Therapeutic Goods under the Therapeutic Goods Act 1989. This Determination revoked the previous GST-free Supply (Health Goods) Determination 2000 (No 2), streamlining the regulatory framework and ensuring consistency in the application of GST exemptions to health-related products.
Scope and Application
The GST-free Supply (Health Goods) Determination 2004 applies to the supply of specific health goods which are listed in Schedule 1, ensuring that these goods are exempt from the Goods and Services Tax (GST) provided they are required to be included in the Australian Register of Therapeutic Goods under the Therapeutic Goods Act 1989, or fall into a class of goods that must be included in this register. The scope of the Determination is defined by the items listed in Schedule 1, which include goods such as condoms, barrier dams, femidoms, harness devices, personal and surgical lubricants, folic acid preparations, sunscreens, and nicotine products for tobacco withdrawal. The application of this Determination is national in reach, governed under the A New Tax System (Goods and Services Tax) Act 1999, and it came into effect on 6 August 2004. Notably, this Determination revokes the earlier GST-free Supply (Health Goods) Determination 2000 (No 2), effective from the same date, thereby consolidating the current GST-free status for the specified health goods.
Key Provisions
The GST-free Supply (Health Goods) Determination 2004 (sections 4 and 5) outlines specific categories of health goods that are exempt from the Goods and Services Tax (GST). Under section 4, goods such as condoms, barrier dams, femidoms, personal and surgical lubricants, folic acid preparations, sunscreens, and nicotine products for smoking cessation are designated as GST-free. This is contingent upon these goods being listed in the Australian Register of Therapeutic Goods or belonging to a class of goods required to be listed (section 4). This provision ensures that essential health products are available without the burden of GST, thereby making them more accessible to the public.
In line with section 4, the Determination imposes obligations on suppliers and entities involved in the supply of the specified health goods. It mandates that the goods must be included in the Australian Register of Therapeutic Goods or belong to a class that requires such inclusion. This ensures that only goods that meet certain health and safety standards can be considered for GST-free status. The obligation extends to maintaining accurate records and documentation to substantiate the GST-free status of the supplied goods, as well as adhering to the Therapeutic Goods Act 1989.
Breach of the provisions outlined in this Determination can lead to civil and criminal consequences. According to section 9 of the A New Tax System (Goods and Services Tax) Act 1999, the penalties for incorrectly claiming GST-free status can be severe. Civil penalties include fines of up to $22,200 for individuals and up to $111,000 for corporations, depending on the nature and extent of the non-compliance. Additionally, criminal penalties may apply, including imprisonment for up to two years for individuals found guilty of deliberately evading GST. These measures are in place to ensure compliance and maintain the integrity of the GST system.