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Edited version of private ruling
Authorisation Number: 1011574599931
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Ruling
Subject: Goods and Services Tax (GST) and myotherapy
Question
Is your supply a GST-free supply?
Answer
No, your supply is not a GST-free supply.
Relevant facts and circumstances
You are an Australian resident and registered for goods and services tax (GST).
You are a graduate.
You do not hold any other qualifications.
You operate an enterprise where you provide a service.
There is no state or federal requirement to be licensed to practise in your enterprise.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 section 38-10
A New Tax System (Goods and Services Tax) Act 1999 subsection 38-10(1)
A New Tax System (Goods and Services Tax) Act 1999 paragraph 38-10(1)(c)
A New Tax System (Goods and Services Tax) Act 1999 section 195-1
Reasons for decision
While these reasons are not part of the private ruling, we provide them to help you to understand how we reached our decision.
Subsection 38-10(1) of the GST Act specifies the other health services, which are GST-free and states:
(1)A supply is GST-free if:
(a) it is a service of a kind specified in the table in this subsection, or of a kind specified in the regulations; and
(b) the supplier is a *recognised professional in relation to the supply of services of that kind; and
(c) 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.
(*denotes a term defined in section 195-1 of the GST Act)
In order for the supply of services to be GST-free, the supply must satisfy the all of the requirements of subsection 38-10(1) of the GST Act.
The table in subsection 38-10(1) is reproduced below
Health services | |
Item |
Service |
1 |
Aboriginal or Torres Strait Islander health |
2 |
Acupuncture |
3 |
Audiology, audiometry |
4 |
Chiropody |
5 |
Chiropractic |
6 |
Dental |
7 |
Dietary |
8 |
Herbal medicine (including traditional Chinese herbal medicine) |
9 |
Naturopathy |
10 |
Nursing |
11 |
Occupational therapy |
12 |
Optometry |
13 |
Osteopathy |
14 |
Paramedical |
15 |
Pharmacy |
16 |
Psychology |
17 |
Physiotherapy |
18 |
Podiatry |
19 |
Speech pathology |
20 |
Speech therapy |
21 |
Social work |
To qualify as service of a kind specified in the table in subsection 38-10(1) of the GST Act, the particular service must actually be listed in the table and not just something similar to one of the services listed in it. The service you enquired about is not listed in the table at subsection 38-10(1) of the GST Act and regulations. Therefore, the supply of the service is not GST-free in its own right.
A particular service may still be GST-free under subsection 38-10(1) of the GST Act if the service is considered to be a technique or a component of one or more of the services listed in the table and the supplier is a recognised professional in relation to one of those services.
In your case, you are a recognised professional in the practise of the service you provide. However, you are not a recognised professional in any of the services listed in the table of which the service can be considered as a technique or component. Therefore, the service is not GST-free under subsection 38-10(1) of the GST Act. It would not matter whether it is a service that would be 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 as required by paragraph 38-10(1)(c) of the GST Act.
As such, your supply of the service fails to satisfy the first requirement under subsection 38-10(1) of the GST Act.
Consequently, your supply of the service is not GST-free under subsection 38-10 (1) of the GST Act, even where the supplier of those services is a member of a professional association.
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