Option to treat supplies as taxable
Some entities have arrangements to provide health-related supplies to individuals. Depending on the nature and terms of the arrangement, some supplies will be GST-free and some will be taxable.
Where health-related supplies were taxable prior to the amendments, entities may want to maintain their current arrangement. The supplier and the recipient (the insurer, scheme operator, or Australian government agency) can agree to treat the supplies as taxable.
A similar mechanism currently exists for medical aids and appliances and goods declared by the Minister for Health to be GST-free.