Important GST Update: Waterproof Bedding and Burn Products

The Australian Taxation Office (ATO) has clarified how GST applies to these items — and all businesses must ensure compliance by 31 December 2025. 

What the ATO Has Updated 

The ATO recently updated its medical aids and appliances guidance, confirming how GST should apply to: 

• Burn products made from hydrogel or hydrocolloid materials 
• Waterproof bedding products, including mattress, pillow, and quilt protectors 

According to the ATO, these products are only GST-free if they meet all the following criteria: 

• Listed in Schedule 3 of the GST Act or GST Regulations 
• Specifically designed for people with an illness or disability 
• Not widely used by people without illness or disability 

For example: 

A mattress protector sold mainly for everyday use or to prevent spills is subject to GST. 

A burn gel marketed for treating minor burns or sunburns is not GST-free, as these are not considered illnesses or disabilities. 

What This Means for Your Business 

You must review how GST is being applied to any burn products or waterproof bedding you sell to ensure your systems, invoices, and product listings are compliant. 

The ATO has stated that it won’t allocate compliance resources to review how GST has been applied for tax periods ending on or before 31 December 2025. This grace period gives you time to correct your GST setup before penalties may apply. 

How TaxAssist Accountants Can Help 

Understanding GST classifications can be complex — and errors can be costly. 
 That’s why the TaxAssist Accountants team is here to help you review your products, systems, and records to ensure everything is compliant before the deadline. 

We can assist with: 

• Reviewing your product categories and pricing systems 
• Advising which items qualify as GST-free medical aids or appliances 
• Helping you update your accounting software and contracts to meet ATO requirements 
• Providing ongoing BAS and GST support to keep your business on track 

Contact Us Before the Deadline 

Contact your local TaxAssist Accountant by email or phone to register your interest in a GST Compliance Review. 
 
We’ll make sure you’re contacted promptly and supported before the 31 December cut-off — so you can avoid unnecessary fines or back payments. 

Call us today or submit an online enquiry to book your GST Review — and stay compliant and confident.

Published 27 Oct 2025

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