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Edited version of your written advice
Authorisation Number: 1051355291165
Date of advice: 14 June 2018
Ruling
Subject: GST and immunotherapy vaccines and finger prick tests
Question
Is the supply of the tests GST-free under subsection 38-50(6) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?
Answer
Yes, the supply of the tests is GST-free under subsection 38-50(6) of the GST Act.
Question
Is the supply of the tests to patients that are supplied under the special access scheme GST-free under subsection 38-50(6) of the GST Act?
Answer
Yes the supply of the tests to patients that are supplied under the special access scheme is GST-free under subsection 38-50(6) of the GST Act.
Relevant facts and circumstances
You are registered for goods and services tax (GST).
You supply tests under the Special Access Scheme (SAS).
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999
Reasons for decision
Subsection 38-50(6) of the GST Act provides that a supply of a drug or medicinal preparation is GST-free if:
a) the drug or medicinal preparation is the subject of an approval under paragraph 19(1)(a) of the Therapeutic Goods Act 1989, and any conditions to which the approval is subject have been complied with; or
b) the drug or medicinal preparation is supplied under an authority under subsection 19(5) of that Act, and the supply is in accordance with any regulations made for the purposes of subsection 19(7) of that Act; or
ba) the supply of the drug or medicinal preparation is authorised by rules under
subsection 19(7A) of that Act; or
c) the drug or medicinal preparation is exempted from the operation of Part 3 of that Act under regulation 12A of the Therapeutic Goods Regulations.
You have stated that you supply the tests under the SAS which satisfies subsection 38-50(6) of the GST Act.
Under subsection 38-50(7) of the GST Act the supply of the drug or medicinal preparation covered by section 28-50 will only be GST –free if:
● it is a drug or medicinal preparation for human use or consumption; and
● the supply is to an individual for private or domestic use or consumption.
Therefore the tests have to be for human use and consumption and not for other use such as for animals. Additionally the tests need to be supplied to the patient who is going to be using the drug for their own private use and consumption. The supply of the tests cannot be made to another entity including a medical practitioner. In this case, whilst the medical practitioner has to write the script the supply is being made to the patient who orders the tests when required and makes payment for it. As such the supply of the tests under the SAS is GST-free.
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