ATO Interpretative Decision
ATO ID 2003/13 (Withdrawn)
Goods and Services Tax
GST and supply of community care for a feeFOI status: may be released
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This ATO ID is withdrawn, as it is no longer necessary. The ATO view expressed in this ATO ID 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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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 care organisation, making a GST-free supply under subsection 38-30(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it supplies care services, in respect of which the entity receives a community care subsidy, to an aged person in their own home and charges the aged person a fee for those services?
Decision
Yes, the entity is making a GST-free supply under subsection 38-30(1) of the GST Act when it supplies care services, in respect of which the entity receives a community care subsidy, to an aged person in their own home and charges the aged person a fee for those services.
Facts
The entity is a care organisation. The entity supplies personal care services and other personal assistance to an aged person in their own home. The entity does not provide the aged person with residential care.
The entity receives a community care subsidy under Part 3-2 of the Aged Care Act 1997. In addition to the subsidy, the entity charges the aged person a fee for the supply of the care services.
The entity is registered for GST.
Reasons for Decision
Under subsection 38-30(1) of the GST Act, a supply of community care is GST-free if a community care subsidy is payable under Part 3-2 of the Aged Care Act to the supplier for the care.
Section 195-1 of the GST Act defines 'community care' as having the meaning given by section 45-3 of the Aged Care Act. Subsection 45-3(1) of the Aged Care Act provides that community care is care consisting of a package of personal care services and other personal assistance provided to a person who is not being provided with residential care.
The entity is providing care services to an aged person in their own home. The entity does not provide the aged person with residential care. Accordingly, the entity's care services satisfy the meaning of community care in section 45-3 of the Aged Care Act.
The entity receives a community care subsidy under Part 3-2 of the Aged Care Act for the care. As such, subsection 38-30(1) of the GST Act is satisfied.
Therefore, the entity is making a GST-free supply under subsection 38-30(1) of the GST Act when it supplies care services, in respect of which the entity receives a community care subsidy, to an aged person in their own home and charges the aged person a fee for those services.
Date of decision: 23 May 2002
Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
subsection 38-30(1)
section 195-1
Part 3-2
section 45-3
subsection 45-3(1)
Keywords
Goods and services tax
GST free
GST health
Section 38-30 - community care
ISSN: 1445-2782
| Date: | Version: | |
| 23 May 2002 | Original statement | |
| You are here | 6 November 2020 | Archived |