• 7.a.7. Are payments under the Practice Incentives Program, General Practitioner Immunisation Incentives Program, Australian Childhood Immunisation Register Information (Notification) Program and Rural Retention Program consideration for a taxable supply?

    For source of ATO view, refer to GSTR 2012/2External Link- Goods and services tax: financial assistance payments.

    No, pursuant to GSTR 2012/2, payments under the Practice Incentives Program, General Practitioner Immunisation Incentives Program, Australian Childhood Immunisation Register Information (Notification) Program and Rural Retention Program are not consideration for supplies, and therefore cannot be consideration for taxable supplies.

    Payments under these programs are made by the Health Insurance Commission (known as ‘Medicare Australia’ as from 1 October 2005).

    Applicants for these payments do not enter into binding obligations with the payer to do anything for which the payment is consideration.

    Applicants for these payments lodge an application for payment of an entitlement or automatically receive a payment based on the initial application and information held by the payer. While the information contained in the application for payment is a supply, the information contained in the application is not the purpose for which the payment is paid. For GST purposes the payment is therefore not consideration for the information contained on the application.

    There is nothing ‘given up’ by the grantee in exchange for the grant. The application is machinery to take advantage of an entitlement.

      Last modified: 16 Oct 2013QC 16330