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ATO Interpretative Decision

ATO ID 2005/185

Goods and Services Tax

GST and supply of air ambulance
FOI status: may be released

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CAUTION: This is an edited and summarised record of a Tax Office decision. This record is not published as a form of advice. It is being made available for your inspection to meet FOI requirements, because it may be used by an officer in making another decision.

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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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 general aviation service provider that is permitted to operate as an air ambulance service under the Civil Aviation Act 1988, an 'ambulance service' for the purpose of subsection 38-10(5) of the A New Tax System (Goods and Services Tax Act) 1999 (GST Act)?

Decision

Yes, the entity is an 'ambulance service' for the purpose of subsection 38-10(5) of the GST Act.

However, whether its supply of services is GST-free under subsection 38-10(5) of the GST Act will depend on who is the recipient of its supply.

Facts

The entity is a general aviation company which also provides an air ambulance service.

The entity holds an Air Operator's Certificate issued by an Australian Government Authority under the Civil Aviation Act and regulation 206 of the Civil Aviation Regulations 1988 which authorises it to perform 'ambulance functions'.

The entity is registered for goods and services tax (GST).

Reasons for Decision

Subsection 38-10(5) of the GST Act provides that certain supplies provided by an 'ambulance service' are GST-free.

'Ambulance service' is not defined in the GST Act. After consideration of the relevant State, Territory and Federal legislation, an ambulance service for the purposes of subsection 38-10(5) of the GST Act is considered to be:

•
an entity that is primarily established for the purpose of rendering, and which does render, first aid or emergency treatment to, and the transport of, sick and injured persons
•
an entity that is permitted to operate as an ambulance service under a State or Territory law in the State or Territory in which it operates, or
•
an entity that is permitted to provide aerial ambulance services pursuant to section 27 of the Civil Aviation Act and regulation 206 of the Civil Aviation Regulations 1988.

The entity holds an Air Operator's Certificate issued by an Australian Government Authority under the Civil Aviation Act 1988 and regulation 206 of the Civil Aviation Regulations which authorises it to perform 'ambulance functions', and is therefore an 'ambulance service' for the purposes of subsection 38-10(5) of the GST Act.

Note. For the supply of the ambulance service to be GST-free under subsection 38-10(5) of the GST Act, the service must be provided in the course of treating the recipient of that supply. A supply can only be one of 'treatment' if it is made to the person requiring that treatment. By its nature 'treatment' cannot be something that is supplied to a business entity.
Accordingly, where the ambulance services are supplied under an agreement with a third party that is a business entity, and the terms of the agreement are such that the third party is the recipient of the supply, that supply to the third party is not covered by subsection 38-10(5) of the GST Act. This is because as a business entity, the third party cannot be in receipt of 'treatment'.

Date of decision:  20 June 2005

Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
   subsection 38-10(5)

Civil Aviation Act 1988
   The Act

Civil Aviation Regulations 1998
   regulation 206

Keywords
Goods and services tax
GST free
GST health
Section 38-10 - other health services
GST supplies & acquisitions
Taxable supply

Business Line:  Indirect Tax

Date of publication:  1 July 2005

ISSN: 1445-2782

history
  Date: Version:
You are here 20 June 2005 Original statement
  8 December 2017 Archived

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