• 2.a.11. Section 38-10(1)(b) of the GST Act requires that the supplier of other health services be a recognised professional. In many instances the supplier of the service is a practice company or partnership which is not itself a recognised professional. Will GST apply in this scenario?

    This issue is a public ruling for the purposes of section 105-60 of Schedule 1 to the Taxation Administration Act 1953.

    In determining whether GST will apply in this scenario, it will not be relevant under section 38-10(1)(b) that the practice company or partnership is not itself a *recognised professional.

    The requirement under section 38-10(1)(b) that the supplier of ‘other health services’ be a *recognised professional, is given meaning by the context in which it appears. It is considered that in this context, it is taken to be a requirement that the person who actually performs the ‘other health service’ must herself or himself, be a *recognised professional in relation to supplying services of that kind. Due to their very nature, a practice company or partnership can not itself perform the services it may supply through others, such as *recognised professionals.

    Therefore section 38-10(1)(b) focuses on the professional status of the person performing the ‘other health service’, and requires that the person performing the ‘other health service’ be a *recognised professional in relation to supplying services of the kind specified in the table in section 38-10.

      Last modified: 16 Oct 2013QC 16330