Show download pdf controls
  • 1 Initial consultation - the GP


    Supply and recipient of supply

    Supply and GST status


    1.1. Kitchen hand, Jane cuts her right hand while preparing food as part of her work.

    Jane is taken to her local GP who cleans and sutures her wound at the surgery.

    The GP advises Jane not to use her hand for three days, and asks her to return to have the stitches removed after three days.

    At this point, Jane has not advised her GP that the injury occurred at work. Jane pays the bill herself.

    Consultation and sutures: Jane

    Consultation and sutures: GST-free

    The supply of the consultation by the GP is a supply of a medical service, which is GST-free.

    Medical service means:

    • a service for which a Medicare benefit is payable under Part II of the Health Insurance Act 1973, or
    • 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 recipient of the supply.

    'Appropriate treatment' is established where a medical practitioner (in this case, the GP) assesses a patient's state of health and determines a process to pursue in an attempt to preserve, restore or improve the physical or psychological wellbeing of that patient, and will include subsequent supplies for the assessed process.

    Goods supplied in the course of supplying a GST-free medical service and made at the premises where the medical service is supplied, are GST-free.

    In this case the sutures are goods supplied by the GP in the course of supplying the medical service to Jane, and are GST-free.

    1.2. During the consultation, the GP issues a medical certificate to Jane, because she will not be able to perform her duties at work.

    Medical certificate: Jane

    Medical certificate: GST-free

    The provision of the medical certificate is ancillary to Jane's treatment, which is the dominant supply.

    The medical certificate is part of the supply of the medical service and is GST-free.

      Last modified: 08 Aug 2019QC 16370