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  • Health organisations

    A health organisation is a public hospital, or hospital operated by a not-for-profit (NFP) society or association or a NFP health insurer within the meaning of the Private Health Insurance (Prudential Supervision) Act 2015.

    Income tax exemption checklist – Health organisations

    Your organisation can self-assess that it is exempt from income tax if it meets all of the following requirements of being either:

    • a Hospital  
      • either a public hospital or a hospital that is carried on by an not-for-profit society or association
      • not a charity
      • meets one of the three following tests  
        • physical presence in Australia test
        • DGR test
        • prescribed by law test
      • complies with all the substantive requirements in its governing rules
      • applies its income and assets solely for the purpose for which it is established; or
    • a private health insurer within the meaning of the Private Health Insurance (Prudential Supervision) Act 2015 that is not carried on for the profit or gain of its individual members.


    A hospital is an institution in which patients receive continuous medical care and treatment for sickness, disease or injury. The provision of accommodation is integral to a hospital's care and treatment.

    Clinics that mainly treat ambulatory patients who return to their homes after each visit are not hospitals. However, day surgeries that provide beds for patients to recover after surgery may be hospitals.

    Homes to provide nursing care such as feeding, cleanliness and similar care are not hospitals. However, nursing homes for people suffering from illness are accepted as hospitals.

    Hospices for the terminally ill will generally be hospitals. Minor outpatient and nursing care will not prevent an institution being a hospital.

    Not-for-profit hospitals include those run by churches and religious orders.

    See also:

    If your organisation does not meet all the requirements for exemption for this category, you should check the other exemption categories in the Types of income tax exempt organisations.

    Last modified: 31 Jan 2019QC 46316