Non-Profit News Service No. 0372 - GST determination released on what is 'hospital treatment'
Due to changes to the public rulings regime, Issue 3.a. in the Health Industry Partnership - issues register (NAT 5275) (the issues register), which set out our view on 'hospital treatment', stopped having public ruling status from 1 July 2010.
Goods and Services Tax Determination GSTD 2012/4What is 'hospital treatment' for the purposes of section 38-20 of the A New Tax System (Goods and Services Tax) Act 1999? reinstates the public ruling status of the meaning of 'hospital treatment' as set out in Issue 3.a. of the issues register. This provides certainty and protection for hospitals that rely on the public ruling status.
The views in the determination are consistent with those in the issues register, except for the provision of telephone calls. The determination explains:
- where the fee for accommodation includes access to a telephone (including telephone calls), this forms part of the GST-free supply of hospital treatment
- where hospitals charge additional fees for a separate supply of access to a telephone (including telephone calls), the hospital must pay GST on those supplies.
The determination also clarifies that the supply of access to a television for an additional fee is a taxable supply.
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