• Examples

    The following examples show how the changes will affect some businesses.

    Example – Insurers

    ABC Health Fund has a pre-existing agreement with a physiotherapist, Phil's Physio, for services supplied to settle claims made under their insurance policies. The agreement outlines what both parties need to do when Phil's Physio treats an ABC Health Fund member. It also outlines that ABC Health Fund must pay Phil's Physio for their services to the private health fund member, as well as the authorisation required for such payments.

    Peter has private health insurance with ABC Health Fund. Peter has an injury that requires physiotherapy, so he contacts ABC Health Fund who refer him to Phil's Physio.

    Under this arrangement, the payment to Phil's Physio is for the supply made to ABC Health Fund, being the services provided to Peter.

    The supply by Phil's Physio to ABC Health Fund is GST-free because:

    • it is made to an insurer when settling one or more claims made under an insurance policy
    • a service (physiotherapy) is supplied to an individual (Peter)
    • the physiotherapy service supplied to Peter is GST-free

     

    Example – Operators of statutory compensation schemes and compulsory third party schemes

    Workcomp Limited is a statutory compensation scheme that is responsible for meeting the medical costs associated with specific workplace injuries.

    Workcomp Limited has a pre-existing agreement with a physiotherapist, Phil's Physio, for services supplied to settle claims made under their compensation scheme. The agreement outlines what both parties need to do when Phil's Physio treats a Workcomp Ltd member. It also outlines that Workcomp Limited must pay Phil's Physio for their services to the Workcomp Ltd member, as well as the authorisation required for such payments.

    Peter has a work related injury that requires physiotherapy. His employer is a member of Workcomp Limited, and they refer Peter to Phil's Physio for treatment.

    Under this arrangement, the payment to Phil's Physio is for the supply made to Workcomp Limited, being the services provided to Peter.

    The supply by Phil's Physio to Workcomp Limited is GST-free because:

    • it is made to a scheme operator when settling a claim made under a statutory compensation scheme
    • a service (physiotherapy) is supplied to an individual (Peter)
    • the physiotherapy service supplied to Peter is GST-free

    Example – Australian government agencies

    The State Sports Institute, an Australian government agency, contracts a health services provider, Workplace Wellness, to vaccinate its staff against influenza.

    Under this arrangement, the service of vaccinating staff is supplied to an Australian government agency.

    The supply by Workplace Wellness to State Sports Institute is GST-free because:

    • it is made to an Australian government agency
    • it is a service of making supplies (vaccinations) to individuals (staff of State Sports Institute)
    • the vaccinations supplied to staff are GST-free.
    End of example
      Last modified: 19 Mar 2015QC 25883