2.a.14. What is the GST status of ergonomic and risk assessments for workers/employees requested by employers?
For source of ATO view, refer to Part 3 of GSTR 2006/9External Link –Goods and services tax: supplies.
The supply will not be GST-free where an employer requests ergonomic and risk assessments of a general workplace as the supply will not constitute ‘appropriate treatment’. Further, the recipient of the supply will be the employer. The employer may be entitled to an input tax credit.
Section 38-60 will not apply in these circumstances as there is no appropriate treatment of an individual which would be GST-free under Subdivision 38-B. Refer to Issue 1.a.6 for a further explanation of section 38-60. Where an individual, concerned with the ergonomics or risk associated with their work environment, requests a recognised professional to identify and advise of corrections to the workplace for that individual to prevent illness or disability, it is accepted that this may be appropriate treatment where all the other elements of section 38-10(1) are satisfied.
In limited circumstances this may be paid for by an insurer, operator of a statutory compensation or compulsory third party scheme or an Australian government agency under a multi-party arrangement. The recognised professional may be making a GST-free supply to the insurer, operator or agency in these circumstances under section 38-60 - see issue 1.a.6. Such assessments would need to be undertaken by a *recognised professional for the service of ‘Occupational therapy’ (Item 11 of Table) or ‘Physiotherapy’ (Item 17 of Table). In order for the assessment to be considered ‘necessary for the appropriate treatment of the recipient of the supply’, the *recognised professional would have to have assessed the recipient's state of health and determined the ergonomic and risk assessment in an attempt to preserve, restore or improve the physical or psychological wellbeing of a particular patient.