ATO Interpretative Decision
ATO ID 2001/452
Goods and Services Tax
GST and medical serviceFOI status: may be released
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This ATOID provides you with the following level of protection:
If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.
Issue
Is the entity, a health professional, making a GST-free supply under subsection 38-7(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it provides a health service to a patient for which a medicare benefit is payable?
Decision
Yes, the entity is making a GST-free supply under subsection 38-7(1) of the GST Act when it provides a medical service to a patient for which a medicare benefit is payable.
Facts
The entity is a health professional. The entity provides a health service to a patient for which a medicare benefit is payable under Part 2 of the Health Insurance Act 1973.
The entity is registered for goods and services tax (GST).
Reasons for Decision
Under subsection 38-7(1) of the GST Act, the supply of a medical service is GST-free.
A medical service is defined under section 195-1 of the GST Act to include a service for which a medicare benefit is payable under Part 2 of the Health Insurance Act.
In this case, a medicare benefit is payable under Part 2 of the Health Insurance Act for the service provided by the entity. Therefore, the entity is making a GST-free supply under subsection 38-7(1) of the GST Act.
Date of decision: 23 August 2001
Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
subsection 38-7(1)
section 195-1
Part 2
Other References:
Health Industry Issues Register Issue 1.a
Keywords
Goods and services tax
GST-free
GST health
Section 38-7 - medical services
ISSN: 1445-2782
| Date: | Version: | |
| You are here | 23 August 2001 | Original statement |
| 7 October 2005 | Archived |