Meaning of 'on behalf of'
The phrase ‘on behalf of’ insubsection 38-20(3) has been interpreted to mean the provision of goods to a patient by the supplier of the ‘hospital treatment’ wherethat supplier has arranged for the goods to be provided, on its behalf, by a third party.
‘On behalf of’ does notextend the GST-free status to those goods that are supplied to a hospital treatment supplier by that third party.
Where goods are supplied to a patient ‘on behalf of’ ahospital by a third party, it is still the hospital that is supplying the goods to the patient. The third party is providing or delivering the goods to the patient but is not supplying the relevant goods to the patient.
The focus of the GST-free status of the goods that have been supplied ‘on behalf of the hospital’ by that third partyis on the supply to the patient and not on the third party who supplied the goods ‘on behalf of’the hospital.
The following questions explore what is within the concept of goods that directly relate to a supply of GST-free ‘*hospital treatment’ for the purposes of section 38-20. None of the questions and answers should be read in isolation but rather as part of the whole of the information contained in this document.