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  • 3.a.2. Relatives/carers of patients in hospital (not just visitors) are sometimes provided with accommodation and or meals in the hospital for a nominal charge, which covers cleaning and catering costs? Is the charge GST-free?

    Non-interpretative – straight application of the law.

    The provision of meals and accommodation to persons not receiving hospital treatment is not GST-free under section 38-20. However, a supply of this nature may be GST-free where the supplier is an endorsed charitable institution (from 1 July 2005), an endorsed trustee of a charitable fund (from 1 July 2005) or a gift-deductible entity. In this case, the supply will be GST-free under section 38-250 where the supply is:

    1. for accommodation, the consideration must be for less than 75% of either the market value or cost of the accommodation, or
    2. for other supplies, the consideration must be for less than 50% of the market value or less than 75% of the cost of that supply.
      Last modified: 16 Oct 2013QC 16330