3.1. The radiologist x-rays Jane's right hand and invoices ABC.

X-rays: Jane only; or both Jane and ABC

X-rays: GST-free (unless the radiologist and ABC agree not to treat ABC supplies as GST-free)

As discussed in 2.1, depending on the arrangements, the radiologist may be making supplies to Jane only or to both ABC and Jane.

The supply is only to Jane and no supply to ABC:

The x-ray service required as part of Jane's ongoing treatment satisfies the definition of a medical service and is GST-free. This applies irrespective of whether Jane or ABC is invoiced.

There is a supply to both Jane and ABC:

As the underlying supply of x-rays to Jane, required as part of her ongoing treatment, is a GST-free medical service, the supply to ABC is also GST-free to the same extent.

As discussed at 2.1, where a supply is made to ABC, the radiologist and ABC can agree not to treat it as GST-free.

If the x-rays were not part of Jane's ongoing treatment, for example, for cosmetic treatment, or as part of litigation proceedings, they would be taxable.

To determine the GST status of the x-rays, the radiologists will need to ascertain whether the x-rays are required for cosmetic treatment or as part of litigation proceedings. In some cases, it may be reasonable for the radiologists to contact the referring GP. Whatever method the radiologist uses to determine the GST status of his/her supply, it must be reasonable.

Note: The AMA suggests that medical practitioners who commonly refer patients to a radiologist could, by agreement, indicate the purpose of the x-ray on the referral form.

3.2. The radiologist's treatment letter/report to the GP advises that Jane's wound contains a foreign object.

Treatment report/letter: Jane only; or both Jane and ABC

Treatment report/letter: GST-free (unless the radiologist and ABC agree not to treat that supply as GST-free)

The radiologist's treatment letter/report is part of Jane's treatment and is GST-free regardless of whether the supply is made to Jane only or to both Jane and ABC.

As discussed in 2.1, where the supply is to ABC, the radiologist and ABC may choose not to treat it as GST-free.

3.3. The radiologist automatically sends a copy of the treatment report/letter prepared for the GP to ABC. They do not charge for the supply of the copy of the treatment report/letter.

Copy of the treatment report/letter: ABC

Copy of the treatment report/letter: Non-taxable

One of the requirements for a taxable supply is that the supply is made for consideration. In this case the supply has been made for no consideration. As such, it is not a taxable supply and the radiologist will not be liable to remit GST to the ATO.

If the radiologist had charged ABC for supplying the report, the supply would have been taxable, because it is a direct and separate supply from the radiologist to ABC and it is not part of Jane's treatment.