ATO Interpretative Decision

ATO ID 2003/1156

Goods and Services Tax

GST and access to an individual's health records for a fee
FOI status: may be released

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Issue

Is the entity, a medical practitioner, making a GST-free supply under subsection 38-7(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it supplies an individual with access to their health records and charges a fee for the service?

Decision

No, the entity is not making a GST-free supply under subsection 38-7(1) of the GST Act when it supplies an individual with access to their health records and charges a fee for the service.

The entity is making a taxable supply under section 9-5 of the GST Act.

Facts

The entity is a medical practitioner. The entity is supplying an individual with access to their health records. The entity does not provide an explanation of their health information. The entity charges a fee to supply this service.

There is no medicare benefit payable for the service that the entity is providing.

The entity is registered for goods and services tax (GST) and the supply satisfies the other positive limbs of section 9-5 of the GST Act.

Reasons for Decision

Under subsection 38-7(1) of the GST Act, the supply of a 'medical service' is GST-free.

A 'medical service' is defined under section 195-1 of the GST Act to mean:

•: a service for which a medicare benefit is payable under Part II of the Health Insurance Act 1973, or
•: any other service supplied by or on behalf of a medical practitioner or approved pathology practitioner that is generally accepted in the medical profession as being necessary for the appropriate treatment of the recipient of the supply.

There is no medicare benefit payable for the service provided by the entity. As such, the service does not fall within the first limb of the definition of medical service as provided in section 195-1 of the GST Act.

One of the requirements of the second limb of the definition of medical service is that the supply is generally accepted in the medical profession as being necessary for the appropriate treatment of the recipient of the supply.

Appropriate treatment is established where a practitioner 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 the recipient and includes subsequent supplies for the assessed process.

The entity is supplying an individual with access to their health records. A supply of access to health information does not involve treatment of any kind and therefore, the requirement that the supply be 'for the appropriate treatment of the recipient of the supply' is not satisfied. As such, the service does not fall within the second limb of the definition in section 195-1 of the GST Act and the supply is not a GST-free supply of a medical service under subsection 38-7(1) of the GST Act.

The entity charges a fee for supplying an individual with access to their health records. The entity is registered for GST and the supply satisfies the other positive limbs of section 9-5 of the GST Act. Furthermore, the supply is neither GST-free under any other provision of Division 38 of the GST Act nor input taxed under Division 40 of the GST Act. Therefore, the entity is making a taxable supply under section 9-5 of the GST Act when it supplies an individual with access to their health records and charges a fee for this service.

Note: Where the entity is engaged to explain the health information relating to the individual, a supply of an explanation of an individual's health information by a medical practitioner will be GST-free where a medicare benefit is payable under Part II of the Health Insurance Act 1973, or the medical profession generally accepts the service as being necessary for the appropriate treatment of the recipient of the supply.

Date of decision: 9 April 2002

Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
   section 9-5
   Division 38
   subsection 38-7(1)
   Division 40
   section 195-1

Health Insurance Act 1973
Part II

Keywords
Goods and services tax
GST free
GST health
Section 38-7 - medical services
GST supplies & acquisitions
Taxable supply

Siebel/TDMS Reference Number: 1267522

Business Line: Indirect Tax

Date of publication: 23 December 2003

ISSN: 1445-2782

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