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Edited version of your written advice
Authorisation Number: 1012820529000
Ruling
Subject: GST and supply of remedial massage therapy services
Question
Is the supply of remedial massage therapy services a GST-free medical or health service under the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) when it is conducted for medical purposes only?
Answer
No. Based on the information received, the supply of remedial massage therapy services is neither a GST-free supply of medical service under section 38-7 of the GST Act nor a GST-free supply of health service under subsection 38-10(1) of the GST Act.
Medical service
Under subsection 38-7(1) of the GST Act a supply of medical service is GST-free.
Medical service is defined in section 195-1 of the GST Act to mean:
a) a service for which medicare benefit is payable under Part II of the Health Insurance Act 1973; or
b) 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.
From the facts received, the supply of the remedial massage therapy services is not a supply of medical service since the supply of remedial massage therapy services is neither covered by a medicare benefit nor is it a supply that is made on behalf of a medical practitioner or approved pathology practitioner. In this instance the supply is not GST-free under subsection 38-7(1) of the GST Act.
Health service
Under subsection 38-10(1) of the Act a supply of health service 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.
Remedial massage therapy is not listed in the table in subsection 38-10(1) of the GST Act. Therefore, remedial massage therapy, in itself, does not satisfy the requirement in paragraph 38-10(1)(a) of the GST Act.
In this instance the supply of remedial massage therapy services is not a GST-free supply of health service under subsection 38-10(1) of the GST Act.
Relevant facts and circumstances
This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling.
You are a fully qualified remedial massage therapist and are not registered for goods and services tax (GST). A high percentage of your clients are referred by physiotherapist, chiropractors and doctors.
You do not offer massage for relaxation. Your supply purely consists of medical remedial massage and the purpose of the massage is for injury or chronic pain management. Your supply is not covered by Medicare and can be claimed from the patient's health fund.
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 subsection 38-10
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