ATO Interpretative Decision
ATO ID 2001/400 (Withdrawn)
Goods and Services Tax
GST and hospital treatmentFOI status: may be released
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ATO ID is withdrawn because it is a straight application of the law and does not contain an interpretative decision.This document incorporates revisions made since original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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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 supplier of hospital care services, making a GST-free supply under subsection 38-20(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it supplies hospital care services to a patient recovering from general medical conditions?
Decision
Yes, the entity is making a GST-free supply under subsection 38-20(1) of the GST Act, when it supplies hospital care services to a patient recovering from general medical conditions.
Facts
The entity is a registered private hospital. The entity is providing hospital care to patients recuperating from general medical conditions. The hospital care supplied involves accommodation and nursing services.
The hospital care is not related to a supply of a professional service that is not GST-free because of subsection 38-7(2) of the GST Act
The entity is registered for goods and services tax (GST).
Reasons for Decision
Under subsection 38-20(1) of the GST Act, a supply of hospital treatment is GST-free.
'Hospital treatment' is defined in section 195-1 of the GST Act as having the meaning given by subsection 67(4) of the National Health Act 1953. 'Hospital treatment' is defined in subsection 67(4) of the National Health Act to mean:
'accommodation and nursing care, whether provided for the purpose of permitting the provision of professional attention or, in the case of a nursing-home type patient, as an end in itself, and includes:
- (a)
- the provision at, or on behalf of, a hospital of relevant health services to a patient of the hospital; and
- (b)
- the provision at a hospital of a facility for a patient of the hospital.'
Accordingly, 'hospital treatment' covers supplies of accommodation and nursing services made by the entity to its patients.
However, subsection 38-20(2) of the GST Act provides that a supply of hospital treatment is not GST-free to the extent that it relates to a supply of a professional service that, because of subsection 38-7(2) of the GST Act, is not GST-free.
In this case subsection 38-20(2) of the GST Act does not apply as the services that the entity provides do not relate to a supply of a professional service that is not GST-free because of subsection 38-7(2).
Therefore, the entity is making a GST-free supply of hospital treatment under subsection 38-20(1) of the GST Act.
Date of decision: 10 August 2001
Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
subsection 38-7(2)
subsection 38-20(1)
subsection 38-20(2)
section 195-1
subsection 67(4) Related ATO Interpretative Decisions
ATO ID 2001/400
Other References:
The Macquarie Dictionary, 1997, 3rd edn, The Macquarie Library Pty Ltd, New South Wales.
Keywords
Goods & services tax
GST free
GST health
Hospital treatment
Medical services
ISSN: 1445-2782
| Date: | Version: | |
| 10 August 2001 | Original statement | |
| You are here | 25 August 2006 | Archived |