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This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law.

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Edited version of your written advice

Authorisation Number: 1012648143602

NOTICE:

This private ruling was revised following issue. This edited version has therefore been replaced with the edited version of the private ruling with the authorisation number of 1051316124487.

Ruling

Subject: GST and home care packages

Question

Are there any goods and services tax (GST) consequences for you in relation to the payment you make to a care or service provider for the care or services they provide to a care recipient where that care recipient has a Home Care Package in place under the Aged Care Act 1997?

Answer

No. In this situation you are acting merely as a paying agent for the care recipient (also known as a consumer).

Relevant facts and circumstances

Relevant legislative provisions

A New Tax System (Goods and Services Tax) Act 1999 Section 38-30.

Reasons for decision

Consumer Directed Home Care as described under the Aged Care Act (1997) was implemented to give a consumer, amongst other things, more control over the type of care and services they receive and by whom. As part of this decision making process, a consumer must first have a plan that has been put into effect under the Aged Care Act 1997 before funding is granted.

As a home care provider, you must have a Home Care Agreement (Agreement) in place with the consumer. As part of your responsibilities under this Agreement, you may have to arrange for care or service providers to provide their care and services to the consumer. You may also have to pay the care or service providers for the delivery of their care and services.

The public ruling GSTR 2000/37 provides the Australian Tax Office view on agency arrangements. Paragraphs 10 and 11 of this ruling state:

Further to this, paragraph 15 of GSTR 2000/37 provides that when an agent uses his or her authority to act for a principal, then any act done on behalf of that principal is an act of the principal.

In this case, the document Home Care Packages Program Guidelines August 2013 issued by the Department of Health and Aging makes it clear that as a home care provider, you are the fund holder and are required to administer the budget on behalf of the consumer.

Your Agreement also makes it clear that you are acting as an agent on behalf of the consumer in relation to the arrangement of, and payment for, care and services delivered to the consumer.

Given this, there are no GST consequences for you in relation to the payment you make to a care or service provider. In this situation you are acting merely as a paying agent for the consumer.


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