ATO Interpretative Decision
ATO ID 2004/503 (Withdrawn)
Goods and Services Tax
GST and training provided to a parent as part of their child's speech therapyFOI status: may be released
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This ATO ID is withdrawn as the interpretative issue is covered in the GST Fact Sheet - GST and other health servicesThis document incorporates revisions made since original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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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 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 provides training to the parent of a child for the purpose of treating that child's language difficulties?
Decision
Yes, the entity is making a GST-free supply under subsection 38-10(1) of GST Act, when it provides training to the parent of a child for the purpose of treating that child's language difficulties.
Facts
The entity is a speech pathologist that supplies speech therapy to children. The entity also conducts a parents' training group to train parents in therapy strategies that are relevant to their children.
The entity has assessed a child and recommended that, as well as the child attending speech therapy, the parent attends a parents' training group in order to address the child's particular language difficulty.
Where parent group therapy sessions are required to assist with the child's treatment, these sessions are 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:
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- 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)
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- the entity is a recognised professional in relation to the supply of services of that kind, and
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- 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.
The entity has assessed a child and recommended that, as well as the child attending speech therapy, the parent attends a parents' training group in order to address the child's particular language difficulty. The purpose of these groups is to train parents to implement therapy strategies, relevant to their child, at home. Therefore, even though the training is provided to the parent, the recipient of the supply of speech therapy is the child.
Where parent group therapy sessions are required to assist with the child's treatment, these sessions are accepted within the speech pathology profession as an appropriate method of treating a child with speech difficulties. Therefore, the treatment provided in the form of training to the parent, would generally be accepted in the speech pathology profession as being necessary for the appropriate treatment of the child.
The 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 provides training to the parent of a child for the purpose of treating that child's language difficulties.
Date of decision: 22 July 2002
Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
section 9-5
subsection 38-10(1)
subsection 38-10(1) table item 19
section 195-1
Table of Content Related ATO Interpretative Decisions
ATO ID 2004/501
ATO ID 2004/502
ATO ID 2004/504
Keywords
Goods and service tax
GST free
GST health
Section 38-10 - other health services
ISSN: 1445-2782
| Date: | Version: | |
| 22 July 2002 | Original statement | |
| You are here | 22 June 2007 | Archived |