ATO Interpretative Decision
ATO ID 2001/523
Goods and Services Tax
GST and radiographer's services to medical specialistsFOI status: may be released
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This document incorporates revisions made since original publication. View its history and amending notices, if applicable.
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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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 radiographer, 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 supplies services to a medical specialist?
Decision
No, the entity is not making a GST-free supply under subsection 38-7(1) of the GST Act when it supplies services to a medical specialist. The entity is making a taxable supply under section 9-5 of the GST Act.
Facts
The entity is a radiographer. The entity supplies services to a medical specialist. These services include assisting with the operation of x-ray machines and attendance at theatre sessions to assist with the operation of the machinery.
The entity is not a qualified medical practitioner or approved pathology practitioner. The entity charges an hourly rate to the medical specialist for the services. A medicare benefit is not payable for this supply.
The entity is registered for goods and services tax (GST). The supply satisfies the other positive limbs of section 9-5 of the GST Act.
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 mean:
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- a service for which medicare benefit is payable under Part II of the Health Insurance Act 1973; or
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- any other service supplied by or on behalf of a medical practitioner or approved pathology practitioner that is generally accepted in the medical profession as being necessary for the appropriate treatment of the recipient of the supply.
In this case, there is no medicare benefit payable for the service that the radiographer supplies to the medical specialist. As such, the service does not fall within the first limb of the definition of 'medical service' in section 195-1 of the GST Act. Therefore, it is necessary to determine whether the entity is making a supply under the second limb of the definition of 'medical service' in section 195-1 of the GST Act. One of the requirements of the second limb of the definition of 'medical service' is that it is necessary to determine whether the entity is making a supply that is generally accepted in the medical profession as being necessary for the appropriate treatment of the recipient of the supply.
It is considered that 'appropriate treatment' is established where a practitioner assesses the recipient's state of health and determines a process to pursue in an attempt to preserve, restore or improve the physical or psychological wellbeing of the recipient and includes subsequent supplies for the assessed process. Appropriate treatment includes the principles of preventative medicine.
Section 195-1 of the GST Act defines 'recipient' in relation to a supply to mean the entity to which the supply was made. In this case, the supply is being made to the medical specialist. As such, the supply is not for the appropriate treatment of the recipient of the supply. Therefore, the entity is not making a GST-free supply under subsection 38-7(1) of the GST Act when it provides services to a medical specialist.
The entity is registered for GST and the supply satisfies the other positive limbs of section 9-5 of the GST Act. Furthermore, the supply is neither GST-free under Division 38 of the GST Act nor input taxed under Division 40 of the GST Act. Therefore, the entity is making a taxable supply under section 9-5 of the GST Act when it provides services to a medical specialist.
However, if a radiographer's only supply is to the patient, it would not be considered to be on behalf of the medical specialist and may be subject to GST.]
Date of decision: 12 September 2001
Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
section 9-5
Division 38
subsection 38-7(1)
Division 40
section 195-1
Part II
Keywords
Goods and services tax
GST-free
GST health
Section 38-7 - medical services
GST supplies & acquisitions
Taxable supply
ISSN: 1445-2782
| Date: | Version: | |
| You are here | 12 September 2001 | Original statement |
| 4 May 2007 | Archived |