GST and medical services

Copies of this publication

You can download a printable version of GST and medical services (NAT 4649, 325KB) in Portable Document Format (PDF).

This fact sheet only covers medical services. For information about the GST treatment of other health services, refer to GST and other health services (NAT 4650).

Terms we use

When we say:

• patient, we mean the recipient of the supply of medical services.
• medical services, we mean
• a service for which a Medicare benefit is payable
• any other service supplied by or on behalf of a medical practitioner or approved pathology practitioner that is generally accepted in the medical profession as being necessary for the appropriate treatment of the patient.

What medical services are GST-free?

Medical services you supply are GST-free if a Medicare benefit is payable for the service.

If a Medicare benefit is not payable, the medical service is still GST-free if both of the following apply:

• you perform it, or it is performed on your behalf
• it is generally accepted by the medical profession as a necessary and appropriate treatment for the patient.

Under some multi-party arrangements, the medical practitioner may make supplies of medical services to both the patient and to a third party, such as a health insurance fund. For more information, see When is a supply of medical services to a third party GST-free?

From 1 July 2012, where a supply of a medical service made to an individual is GST-free, that supply will also be GST-free where the recipient of the supply is:

• an insurer in settling a claim under an insurance policy
• an operator of a statutory compensation scheme
• an operator of a compulsory third party scheme
• an Australian government agency.