Health Industry Partnership - GST and workers compensation - case study

This case study has been prepared by the ATO in consultation with the Insurance Council of Australia and the Australian Medical Association. It is updated to reflect any legislative changes and updates to ATO view.

It sets out the principles that medical practitioners and workers' compensation insurers can use to determine the goods and services tax (GST) status of supplies made by medical practitioners for people claiming workers' compensation.

The issues raised in this case study relate to several sections of Subdivision 38-B-Health of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act). These include sections 38-7 Medical Services, 38-10 Other Health Services, 38-60 Third party procured GST-free health supplies, and other general provisions of the GST Act.

How this case study works

This case study works through the GST consequences of a worker's compensation claim.

The GST status and our position are explained in the comment column.

This case study will not cover all cases.

The particular circumstances or responses described in each case study should not be viewed as a generic position held by the ATO. For further explanation about how this applies to your particular circumstances you can request an indirect tax private ruling.

Unless otherwise stated, all references in this case study relate to sections of the GST Act.

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