Third party procured GST-free health supplies

The amendment to the legislation provides that some health-related supplies by health care providers will be GST-free supplies, to the extent that the underlying supply of health-related goods or services made by the health care provider to an individual is GST-free.

These changes apply to supplies of health-related goods and services that are made to an:

• insurer in settlement of an insurance claim
• operator of a compulsory third party scheme or a statutory compensation scheme
• Australian government agency.

The changes take effect from 1 July 2012.

Legislation and supporting material

The following legislation received royal assent on 27 June 2012.

• Tax and Superannuation Laws Amendment (2012 Measures No. 1) Act 2012
• Explanatory Memorandum

More information Refer to: GST - free health supplies - overview Federal Budget Paper No. 2 - Revenue Measures the consultation paper on the proposed amendments, which was issued for public comment by Treasury on 7 June 2011 Exposure draft legislation and Explanatory Memorandum released for comment on 21 November 2011.