Edited version of private ruling

Authorisation Number: 1011485975523

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Ruling

Subject: whether supplies of remedial massage therapy services are GST-free supplies

Question 1

Is your supply of remedial massage therapy services a GST-free supply?

Answer

No, your supply of remedial massage therapy services is not a GST-free supply.

Relevant facts and circumstances

You provide remedial massage therapy services as part of the business you carry on.

You are registered for GST.

A Medicare benefit is not payable for these services.

The remedial massage therapy services are provided by a qualified remedial massage therapist who is a registered provider with the Australian Natural Therapists Association. However, the remedial massage therapy services are not carried out by a medical practitioner.

The remedial massage therapy services are not a standard technique or component of another health service.

Relevant legislative provisions

A New Tax System (Goods and Services Tax) Act 1999 Section 38-7 and

A New Tax System (Goods and Services Tax) Act 1999 Section 38-10.

Reasons for decision

Medical services

Subdivision 38-B of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) provides that certain health related services are GST-free. In particular, section 38-7 of the GST Act provides that the supply of a 'medical service' is GST-free, and section 38-10 of the GST Act provides that the supply of certain other health services is GST-free.

Under section 195-1 of the GST Act a 'medical service' means:

· 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.

You have advised that a Medicare benefit is not payable on the remedial massage services you provide, so your supplies are not medical services according to paragraph (a) of the definition of a medical service.

We need to consider whether your services satisfy paragraph (b) of the definition of 'medical service' in section 195-1 of the GST Act. Paragraph (b) of that definition requires that the service be supplied by or on behalf of a medical practitioner or an approved pathology practitioner.

The terms 'medical practitioner' and 'approved pathology practitioner' are separately defined under section 195-1 of the GST Act to mean a person who is, for the purposes of the Health Insurance Act 1973, a medical practitioner or an approved pathology practitioner.

The phrase 'on behalf of' in paragraph (b) of the definition of a 'medical service' under
section 195-1 of the GST Act will not include a service performed as a result of a referral by a medical practitioner. A service performed as a result of a referral by another person, such as a medical practitioner, is not a component of the supply being provided by or on behalf of the referring medical practitioner. The service performed on referral is a separate service, the GST status of which must be considered independently.

The remedial massage therapy services you provide are not carried out by a medical practitioner or an approved pathology practitioner. Furthermore, you do not supply your services on behalf of a medical practitioner or an approved pathology practitioner. That is, you are not a medical practitioner, so you cannot provide medical services on behalf of a medical practitioner. As such your services do not fall under paragraph (b) of the definition of 'medical service' in section 195-1 of the GST Act.

Accordingly, as the supply of remedial massage services for which no Medicare benefits are payable does not satisfy the definition of 'medical services' in section 195-1 of the GST Act, the services are not GST-free under section 38-7 of the GST Act.

Supply of other health services

Subsection 38-10(1) of the GST Act provides that a supply of certain health services is GST-free if:

· it is a service of a kind specified in the table in subsection 38-10(1) of the GST Act or in the A New Tax System (Goods and Services Tax) Regulations 1999 (GST Regulations)

· the supplier is a recognised professional in relation to the supply of services of that kind, and

· 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.

All of the above requirements must be satisfied for the supply of remedial massage services to be GST-free.

To satisfy the requirement of paragraph 38-10(1)(a) of the GST Act, the remedial massage therapy services must be specified in the table in subsection 38-10(1) of the GST Act or the GST Regulations. At this stage, no regulations have been made under section 38-10 of the GST Act.

Remedial massage therapy services are not listed in the table in subsection 38-10(1) of the GST Act. They are not considered as services of a kind specified in the table. Therefore, when provided in their own right, they do not satisfy the requirements of paragraph 38-10(1)(a) of the GST Act.

However, the requirement in paragraph 38-10(1)(a) of the GST Act would be satisfied if you were a recognised professional in relation to the supply of one or more of the services listed in the table in subsection 38-10(1) of the GST Act and the remedial massage therapy services were a standard technique or a component of the supply of those listed services.

For example, 'physiotherapy' and 'chiropractic' are services listed in the table in
subsection 38-10(1) of the GST Act. If remedial massage therapy services are provided as a standard technique or a component of the supply of physiotherapy and chiropractic services, the supply will satisfy the requirements of paragraph 38-10(1)(a) of the GST Act.

In your case, based on the information you have provided, you are not supplying any of the relevant services listed in the table in subsection 38-10(1) of the GST Act. The services that you provide are a distinct type of treatment which do not fall under any of the listed services. Therefore, the requirement in paragraph 38-10(1)(a) of the GST Act is not satisfied.

In order for the supply of your services to be GST-free, you will need to satisfy all the requirements in subsection 38-10(1) of the GST Act. Since you do not satisfy the requirement in
paragraph 38-10(1)(a) of the GST Act, you do not meet all the requirements of this subsection. As such, the remedial massage therapy services that you supply are not GST-free under subsection 38-10(1) of the GST Act.

There are no other provisions in the GST Act or any other Act that make your supply of remedial massage therapy services GST-free.

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