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ATO Interpretative Decision

ATO ID 2005/7 (Withdrawn)

Goods and Services Tax

GST and the supply of nanny services
FOI status: may be released
  • This ATO ID is withdrawn because it contains a view in respect of a section 38-140 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) which was repealed to reflect the consequential amendments made to the GST Act by the Family Assistance Legislation Amendment (Jobs for Family Child Care Package) Act 2017 effective 2 July 2018. Despite its withdrawal, this ATO ID continues to be a precedential view in respect of decisions prior to 1 July 2018.
    This document incorporates revisions made since original publication. View its history and amending notices, if applicable.

Status of this decision: Decision withdrawn 10 September 2019
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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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 registered carer, making a GST-free supply under section 38-140 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) when it provides nanny services in a client's home?

Decision

Yes, the entity is making a GST-free supply under section 38-140 of the GST Act when it provides nanny services in a client's home.

Facts

The entity is a registered carer within the meaning of section 3 of the A New Tax System (Family Assistance) (Administration) Act 1999 (FAA Act) and is registered with the Family Assistance Office as a care provider. The entity is also registered for goods and services tax (GST).

The entity makes supplies of nanny services for a fee. The activities are undertaken in and around the client's home rather than at an established child care centre. The activities undertaken by the nanny are restricted to those of taking care of and supervising the client's children.

Reasons for Decision

Section 38-140 of the GST Act provides that a supply is GST-free if it is a supply of child care by a registered carer (within the meaning of section 3 of the FAA Act).

The term 'child care' is not defined in the GST Act or in the FAA Act and therefore, it is appropriate to consider its ordinary meaning. The Macquarie Dictionary, 1997, 3rd edn, The Macquarie Library Pty Ltd NSW, defines the term 'child care' as 'professional superintendence of children' and The Australian Oxford Dictionary, 1999, Oxford University Press, Melbourne, defines 'child care' as 'the care of children, esp. in a crèche'.

The entity supplies nanny services to a client. These services only involve taking care of and supervising the client's children. These activities are undertaken in and around the client's home rather than at an established child care centre. However, there is no requirement within the meaning of child care or in section 38-140 of the GST Act that the services must be provided in a child care centre. Therefore, the entity's supply is of child care.

As the entity is a registered carer within the meaning of section 3 of the FAA and the nanny services it supplies are 'child care', the entity is making a GST-free supply under section 38-140 of the GST Act.

Note. If the entity also performs any significant housekeeping duties (that is, the housekeeping is not integral, ancillary or incidental to the supply of child care) the entity would be making a mixed supply that would be partly taxable and partly GST-free. If the entity does make a mixed supply, it would need to apportion the fee received between the taxable and GST-free parts of the supply. Guidance on when something is integral, ancillary or incidental and how to apportion the fee can be found in Good and Services Tax Ruling GSTR 2001/8.

Date of decision:  12 November 2004

Year of income:  Year ended 30 June 2004

Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
   section 38-140

A New Tax System (Family Assistance) (Administration) Act 1999
   section 3

Related Public Rulings (including Determinations)
Goods and Services Tax Determination GSTD 2001/1
Goods and Services Tax Ruling GSTR 2001/8

Other References:
The Macquarie Dictionary, 1997, 3rd edn, The Macquarie Library Pty Ltd NSW
The Australian Oxford Dictionary, 1999, Oxford University Press, Melbourne

Keywords
Goods and services tax
GST free
GST child care
Child care supplies

Siebel/TDMS Reference Number:  4249748;1-HT5O1XA

Business Line:  Indirect Tax

Date of publication:  14 January 2005

ISSN: 1445-2782

history
  Date: Version:
  12 November 2004 Original statement
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