• 1.a.14. Where a doctor bulk bills for a medical service and charges the patient an administration fee, what is the GST status of the charge for the administration fee?

    Non-interpretative – straight application of the law.

    The GST status of the administration fee depends on ascertaining the true nature of the fee.

    If the administration fee is not a charge for additional services but is a charge that is made separately for overheads embodied within the service that was bulk billed for example, it will have the same character as the service that has been supplied. If the service supplied is GST-free under the second limb of the definition of *medical service, the administration fee for the overheads forming a part of that service will also be GST-free.

    If the service supplied would not have been GST-free under the second limb, the administration fee for the overheads forming a part of that service will not be GST-free.

      Last modified: 16 Oct 2013QC 16330