• 4.d. Are payments under the Medicines Information to Consumers program, Home Medicines Review program, Quality Care Pharmacy Program and payments of Rural Pharmacy Maintenance Allowance consideration for a taxable supply?

    For source of ATO view, refer to GSTR 2012/2External Link - Goods and services tax: financial assistance payments.

    No, pursuant to GSTR 2012/2, payments under the Medicines Information to Consumers program, Home Medicines Review program, Quality Care Pharmacy Program and payments of Rural Pharmacy Maintenance Allowance are not consideration for supplies, and therefore cannot be consideration for taxable supplies.

    Payments under these programs are made by the Health Insurance Commission (Medicare Australia from 1 October 2005).

    Applicants for these payments do not enter into binding obligations with the payer to do anything for which the payment is consideration.

    Applicants for these payments lodge an application for payment of an entitlement. While the information contained in the application for payment may meet the statutory definition of a 'supply', the information contained in the application is not the purpose for which the payment is paid. For GST purposes the payment is therefore not consideration for the information contained on the application.

    Submitting the application, together with the information required to consider it, is merely a mechanism to establish whether a payment will be made.

      Last modified: 02 Apr 2014QC 16333