ATO Interpretative Decision

ATO ID 2004/502 (Withdrawn)

Goods and Services Tax

• This ATO ID is withdrawn as the interpretative issue is covered in the GST Fact Sheet - GST and other health services
  This document incorporates revisions made since original publication. View its history and amending notices, if applicable.

Issue

Is the entity, a speech pathologist, making a GST-free supply under subsection 38-10(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it supplies speech therapy to a child in a group environment and the entity has, prior to the therapy, conducted an initial assessment of the child over the phone with the child's parent but has not carried out a detailed one on one assessment of the child?

Decision

Yes, the entity is making a GST-free supply under subsection 38-10(1) of the GST Act when it supplies speech therapy to a child in a group environment and the entity has, prior to the therapy, conducted an initial assessment of the child over the phone with the child's parent but has not carried out a detailed one on one assessment of the child.

Facts

The entity is a speech pathologist. The entity supplies speech therapy to children in a group environment. The entity plans the content of the speech therapy sessions in advance to target the specific needs of the children attending.

The entity does not undertake a detailed one on one assessment of a child's language skills prior to that child attending therapy. The entity conducts an initial assessment of the child's language skills during a phone conversation with the child's parent. This assessment is to determine whether speech therapy in a group environment would be beneficial for the child.

The entity continues to monitor and assess the child during the course of the speech therapy and tailors the therapy to meet the needs of the child.

Speech therapy conducted in a group environment, under these circumstances, is accepted within the speech pathology profession as an appropriate method of treating a child with speech difficulties.

The entity is a member of the relevant national professional association and is a recognised professional as defined in section 195-1 of the GST Act. The entity is registered for goods and services tax (GST).

Reasons for Decision

Under subsection 38-10(1) of the GST Act, an entity makes a GST-free supply of other health services if:

•

the entity provides a service of a kind specified in the table in subsection 38-10(1) of the GST Act, or of a kind specified in the A New Tax System (Goods and Services Tax) Regulations 1999 (GST Regulations)

•

the entity is a recognised professional in relation to the supply of services of that kind, and

•

the supply would generally be accepted, in the profession associated with supplying services of that kind, as being necessary for the appropriate treatment of the recipient of the supply.

Speech pathology services are listed at item 19 in the table in subsection 38-10(1) of the GST Act and the entity is a recognised professional in relation to the supply of speech pathology. As such, the first two requirements under subsection 38-10(1) of the GST Act are satisfied.

The third requirement is that the treatment must be generally accepted in the relevant health profession as being necessary for the appropriate treatment of the recipient.

'Appropriate treatment' will be established where a recognised professional, 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 that recipient, insofar as that professional area of training allows. It will include subsequent supplies for the determined process.

Appropriate treatment includes the principles of preventative medicine. Such treatment must be generally accepted in the profession associated with supplying services of that kind, as being necessary.

While a detailed, one on one, assessment of the child's language skills has not been undertaken prior to the child attending therapy, the entity did conduct an initial assessment of the child's language skills during a phone conversation with the child's parent. This assessment was to determine whether speech therapy in a group environment would be beneficial for the child. The entity continues to monitor and assess the child during the course of the speech therapy and tailors the therapy to meet the needs of the child. Therefore, the entity has assessed the child's health to determine the appropriate treatment for the child.

Speech therapy conducted in a group environment, under these circumstances, is accepted within the speech pathology profession as an appropriate method of treating a child with speech difficulties. As such, the third requirement of subsection 38-10(1) of the GST Act is satisfied.

The entity's supply of the speech therapy satisfies all of the requirements under subsection 38-10(1) of the GST Act. Therefore, the entity is making a GST-free supply under subsection 38-10(1) of the GST Act when it supplies speech therapy to a child in a group environment where the entity has conducted an initial assessment to determine if speech therapy in a group environment will be beneficial, however the entity has not carried out a detailed one on one assessment of the child prior to therapy.

Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
   subsection 38-10(1)
   subsection 38-10(1) table item 19
   section 195-1

Related ATO Interpretative Decisions
ATO ID 2004/501
ATO ID 2004/503
ATO ID 2004/504

Keywords
Goods and service tax
GST free
GST health
Section 38-10 - other health services

Business Line:  GST

Date of publication:  25 June 2004

ISSN: 1445-2782