Edited version of private advice

Authorisation Number: 5010112823533

Date of advice: 9 April 2025

Ruling

Subject: GST - supply of services

Question 1

Is GST payable by you under section 9-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) on your supply of XXXX services to your clients?

Answer

Yes.

Question 2

Is GST payable by you under section 9-5 of the GST Act on your supply of social support/social skills development services where the patient is a NDIS participant, and they are a client of X clinic?

Question 3

Is GST payable by you under section 9-5 of the GST Act on your supply of supervision services?

Answer

Yes.

Question 4

Is GST payable by you under section 9-5 of the GST Act on your supply of workplace training and professional development workshops?

Answer

Yes.

Relevant facts and circumstances

You are registered for GST.

You are not a Registered Training Organisation (RTO).

You carry on a business in Australia.

In the course of carrying on your business, you supply:

•                     XXXX services

•                     social support/social skills development services (you provide these services to NDIS participants)

•                     supervision services and

•                     workplace training and professional development workshops.

You charge fees for all of these services.

Your qualifications and training

You obtained an undergraduate degree in XXXX in (year).

You have completed a number of post-graduate trainings including; clinical supervision, XXXX, DBT. You continuously upskill yourself in order to be providing the highest quality of care to your patients

Your training has been in XXXX XXXX. There is an overlap between XXXX and XXXX.

You have (number) years industry experience spanning government, non-government organisations (NGOs) and private practice. You have worked with patients experiencing complex mental health issues including psychotic disorders, personality disorders, PTSD/complex trauma and substance abuse issues.

You are currently a registered clinical member of the Psychotherapists and Counsellors Federation of Australia (PACFA). To become a clinical member, you were required to provide evidence of completing 750 hours+ of direct clinical work with clients and at least 75 hours of clinical supervision since graduating university. To maintain clinical registration, you must attend a certain amount of professional development (PD) and supervision throughout a 12 month period. There is a high standard required of clinical members of PACFA.

You are not registered as a psychologist with the Psychology Board of Australia (PsyBA), which is part of the Australian Health Practitioner Regulation Agency (AHPRA). You are not eligible for such registration because you do not have a psychology degree.

Details of your counselling services and the services provided to NDIS participants

Your services include completing screeners, which is an important part of the assessment process when working with a patient. You may use screeners at the initial session and throughout the treatment period in order to determine several things such as; level of distress, depression, stress, anxiety, presence of any psychotic symptoms, dissociation, post traumatic stress disorder (PTSD) and adverse childhood experiences.

You cannot legally provide a diagnosis to patients as a counsellor, and you make this very clear to patients. You complete screeners which indicate symptoms and level of functioning. Screeners do not provide the basis for a diagnosis. If it is your professional opinion, you recommend a patient see another health professional for a diagnosis - you would refer them to a psychiatrist and would provide the psychiatrist with a report and outcomes from any screeners.

You are currently working in private practice at the X clinic in Australia. X clinic is not an Australian government agency. You are the only counsellor within the practice of approximately (number) psychologists. The patients you provide counselling services to at the X clinic are X clinic's clients. You work at the X clinic (number) days a week.

You also see patients under your ABN at another location on another (number) days of the week. The patient is your client under this arrangement.

Some of the people who see you are National Disability Insurance Scheme (NDIS) participants. All of these people are clients of X clinic; these people are never your clients. You provide social support/social skills development services to these people. You do not provide counselling services to these people.

The other people who see you pay the full private fee or are covered by Y (an insurance regulatory authority). These people may be clients of X clinic or clients of yours (in the latter scenario, you would see them at the location at which you work 2 days a week).

As you cannot bill under Medicare, a patient does not need to have a GP referral or mental health care plan in order to see you. But sometimes a patient will come with a GP or psychiatrist referral or referral from another service.

Details of your supervision services

You are also a clinical supervisor, which involves providing professional supervision to workers in the industry including social workers, case workers and counsellors. The supervision work involves case consultation, feedback, instruction, training, education, reflective practice. The supervision work does not involve systematic training, but it does involve imparting knowledge on predetermined topics/areas. You are not required to report on the performance of the supervisees to a regulatory body unless you were concerned about safety or risk, i.e malpractice, child protection, risk of harm to self/others. You make this clear to supervisees when you start working with them that supervision is confidential, however if you ever become worried about safety or risk in their work with patients, you would need to advise their manager and the appropriate body (i.e PACFA, Australian Association of Social Workers (AASW)).

You supervise people who have undergraduate degrees, as well as some who have TAFE diplomas or certificates. The people who choose to engage you for supervision usually do so because the supervision in their workplace is inadequate in terms of their learning and professional development. It is not a legal requirement that these people receive such supervision in order to be issued with some qualification that is legally required to be held by them in order to enter, or commence the practice of, their respective professions and no professional or trade association imposes such a qualification. The supervisees are fully registered in their respective professions (so they are already legally entitled to practice their respective professions on an unsupervised basis) if their qualification allows (eg social work/AASW or counselling/psychotherapy/PACFA or Australian Counselling Association (ACA)) i.e a TAFE diploma or certificate does not meet eligibility criteria for someone to register with their respective professions.

Supervision and continuing professional development (CPD) are classified as two separate things for peak bodies such as AASW and PACFA. It is necessary to remain accredited with both of these bodies to have a certain amount of supervision AND a certain amount of CPD throughout a 12 month registration period.

Details of your workplace training and professional development workshops

You also provide workplace training and professional development workshops. This training and the workshops involve CPD type training.

The manager of the team that attendees work in hires you to provide training to their team (which can sometimes include the manager attending the training).

It is not a legal requirement that the people you train complete the training in order to be issued with some qualification that is legally required to be held by them in order to commence the practice of their respective professions and no professional or trade association imposes such a qualification.

Relevant legislative provisions

A New Tax System (Goods and Services Tax) Act 1999 section 9-5

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

A New Tax System (Goods and Services Tax) Act 1999 section 38-85

A New Tax System (Goods and Services Tax) Act 1999 section 195-1>

Reasons for decisions

Question 1

Summary

You are not providing psychology services or any of the other types of services listed in the table in subsection 38-10(1) of the GST Act. Therefore, your supplies of counselling services are not GST-free under section 38-10 of the GST Act.

There are no other provisions of the GST Act under which your supplies of counselling services are GST-free.

Therefore, as all of the requirements of section 9-5 of the GST Act are met, GST is payable on your supplies of counselling services.

Detailed reasoning

GST is payable on supplies that are taxable.

Section 9-5 of the GST Act provides that you make a taxable supply if:

(a)          you make the supply for consideration

(b)          the supply is made in the course or furtherance of an enterprise that you carry on

(c)          the supply is connected with the indirect tax zone (Australia), and

(d)          you are registered or required to be registered for GST.

However, the supply is not a taxable supply to the extent that it is GST-free or input taxed.

Based on the information you provided, your supply of counselling services satisfies paragraphs 9-5(a) to 9-5(d) of the GST Act as you supply these services for consideration, in the course of your enterprise, these supplies are connected with Australia, and you are registered for GST.

However, your supplies will not be a taxable supply to the extent that they are GST-free or input taxed.

Your supply of counselling services is not input taxed under any provisions of the GST Act or any other Act. Therefore, we need to consider whether the supply of the services is GST-free.

Division 38 provides that certain supplies relating to health are GST-free. In your case, under the scenario in question 1, the only relevant provision to examine is section 38-10 of the GST Act.

Other health services

Subsection 38-10(1) of the GST Act provides that the supply of a 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

(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.

All three requirements in subsection 38-10(1) of the GST Act must be satisfied for the supply of a health service to be GST-free under this subsection.

The first requirement in paragraph 38-10(1)(a) of the GST Act is that you must supply one of the services listed in the table referred to in this subsection.

You are supplying counselling services. Counselling services are not services of a kind listed in the table in subsection 38-10(1) of the GST Act.

However, where a service is not a supply of a kind specified in the table in subsection 38-10(1), the requirement in paragraph 38-10(1)(a) will be satisfied if the service is a standard technique or a component of the supply of one or more of the services listed in the table and is supplied by a 'recognised professional' as defined in the GST Act.

Psychology services are listed in the table. However, you are not supplying 'psychology' services, as to call yourself a psychologist and to practise as one, you need to register with PsyBA, which is part of the AHPRA. Therefore, as you are not so registered, you are not a recognised professional in relation to psychology.

Further, you are not supplying any of the other services listed in the table in subsection 38-10(1) of the GST Act.

As you do not satisfy all the requirements under subsection 38-10(1) of the GST Act, your supply of counselling services is not GST-free under section 38-10 of the GST Act.

Conclusion

As it is determined that your supply of counselling services is not GST-free under section 38-10 of the GST Act, your supply is a taxable supply because all the requirements under section 9-5 of the GST Act are satisfied.

Question 2

Summary

Your supplies of social support/social skills development services are not GST-free under section 38-38 of the GST Act (the NDIS GST exemption provision) because the NDIS participant is not the recipient of your supply, for GST purposes.

There are no other provisions of the GST Act under which your supplies of these services are GST-free.

As all of the requirements of section 9-5 of the GST Act are met in respect of your supplies of these services, GST is payable on your supplies of these services.

Detailed reasoning

Your supplies of social support/social skills development services meet the requirements of paragraphs 9-5(a) to 9-5(d) of the GST Act.

There are no provisions of the GST Act under which your supplies of these services are input taxed.

The only relevant GST-free provision to consider is section 38-38 of the GST Act.

Supplies of disability support services made to NDIS participants are GST-free under section 38-38 of the GST Act where the requirements of that section are met. That section states:

A supply is GST-free if the supply:

(a)          is a supply to a participant (within the meaning of the National Disability Insurance Scheme Act2013) for whom a participant's plan is in effect under section 37 of that Act; and

(b)          is a supply of one of more of the reasonable and necessary supports specified in the statements included, under subsection 33(2) of that Act, in the participant's plan; and

(c)          is made under a written agreement, between the supplier and the participant or another person,that:

           i.      identifies the participant; and

           ii.      states that the supply is a supply of one or more of the reasonable and necessary supports specified in the statement included under subsection 33(2) of that Act, in the participant's plan; and

(d)          is of a kind that the *Disability Services Minister has determined in writing.

You only see NDIS participants at the X clinic, and under that arrangement, the NDIS participants are X clinic's clients. Therefore, under such circumstances, you make a supply of services to X clinic who in turn makes a supply of services to the NDIS participant. Hence, the NDIS participant is not the recipient of your supply and X clinic is instead the recipient of your supply. Therefore, you do not meet the requirement of paragraph 38-38(a) of the GST Act.

As you do not meet the first requirement of section 38-38 of the GST Act, it is not necessary to consider the other requirements of that section, and you do not make a GST-free supply of services under that section.

Under the NDIS scenario, you would not make a GST-free supply under any provision of the GST Act. Therefore, as all of the requirements of section 9-5 of the GST Act would be met under this scenario, GST would be payable by you on the services you supply to X clinic for the fee you receive from X clinic under this scenario.

Question 3

Summary

Your supplies of supervision are not GST-free under paragraph 38-85(a) of the GST Act because the supervision does not meet the definition of education course in section 195-1 of the GST Act.

There are no other provisions of the GST Act under which your supplies of supervision are GST-free.

As all of the requirements of section 9-5 of the GST Act are met in respect of your supplies of supervision, GST is payable on your supplies of these services.

Detailed reasoning

Your supplies of supervision meet the requirements of paragraphs 9-5(a) to 9-5(d) of the GST Act.

There are no provisions of the GST under which your supplies of supervision are input taxed.

Therefore, what remains to be determined is whether your supplies of supervision are GST-free.

Certain types of courses of education are GST-free.

Paragraph 38-85(a) of the GST Act provides that a supply of an education course as defined in the GST Act is GST-free.

Section 195-1 of the GST Act states:

"education course" means:

(a)          a *pre-school courses; or

(b)          a primary course; or

(c)          a *secondary course; or

(d)          a tertiary course; or

(f)          a special education course; or

(g)          an *adult and community education course; or

(h)          an *English language course for overseas students; or

(i)          a first aid or lifesaving course; or

(j)          a *professional or trade course' or

(k)          a *tertiary residential college course.

The relevant type of education course that will be examined further is a 'professional or trade course'.

Meaning of professional or trade course

Section 195-1 of the GST Act defines professional or trade course as a course leading to a qualification that is an essential prerequisite:

(a)          for entry to a particular profession or trade in Australia; or

(b)          to commence the practice of (but not to maintain the practice of) a profession or trade in Australia.

Section 195-1 of the GST Act defines essential prerequisite as follows:

"essential prerequisite": a qualification is an essential prerequisite in relation to the entry to, or the commencement of the practice of, a particular profession or trade if the qualification is imposed:

(a)          by or under an industrial instrument; or

(b)          if there is no industrial instrument for that profession or trade, but there is

a professional or trade association that has uniform requirements relating

to the entry to, or the commencement of the practice of, the profession or

trade - by that association; or

(c)          if neither paragraph (a) nor (b) applies but there is a professional or trade

association in a State or Territory that has requirements relating to the

entry, or to commencement of the practice of, the profession or trade

concerned - by that association.

Paragraph 50 of Goods and Services Tax Ruling GSTR 2003/1 Goods and services tax: professional or trade courses (GSTR 2003/1)defines industrial instrument. It states:

50. An 'industrial instrument' is defined in section 195-1 as having the meaning given by section 995-1 of the Income Tax Assessment Act 1997 ('ITAA 1997') which states: 'industrial instrument means: (a) an Australian law; or (b) an award, order, determination or industrial agreement in force under an Australian law.

Paragraph 22 of GSTR 2003/1 discusses the first requirement for a learning program to be a professional trade course - that is, it would need to be a course of education. The paragraph states:

What is a course?

22. Whether you supply a course is a question of fact. In the context of the definition of a 'professional or trade course' in section 195-1, a course is a program of systematic and interactive instruction or training, for the acquisition of particular skills or knowledge. Indicators of a course include, but are not limited to:

•                     delivery of educational instruction through an instructor or teacher;

•                     ongoing support and guidance, for example, being available to answer questions;

•                     assessment of the individual's progress;

•                     monitoring or supervision;

•                     provision of feedback concerning the individual; and

•                     assessment of competency or satisfactory completion at the end of the program of instruction.

Paragraph 23 of GSTR 2003/1 states:

23. The definition of professional or trade course in section 195-1 does not require that the instruction or training be of a specified length of time. The length of the program of instruction or training is not determinative of whether it is a course for the purposes of the definition.

Paragraphs 34 to 36 of GSTR 2003/1 explain the 'leading to' requirement. They state:

34. We consider that the words 'leading to' require a causal connection between the course that is undertaken and the qualification that is ultimately obtained.

35. We also consider that a causal connection exists where there is a sufficiently direct and demonstrable link or connection between the course and the qualification.

36 The qualification must result from, and will follow successful completion of the course.

Your supplies of supervision are not courses of education leading to qualifications that are imposed as a legal requirement for entry to, or commencing the practice of, particular professions or trades in Australia nor does a professional or trade association impose such a qualification.

Therefore, you are not supplying professional or trade courses for the purposes of the definition of professional or trade course in the GST Act.

Your supplies of supervision are not supplies of any of the other types of education course listed in section 195-1 of the GST Act.

Therefore, your supplies of supervision are not GST-free under paragraph 38-85(a) of the GST Act.

There are no other provisions of the GST Act under which your supplies of supervision are GST-free.

Therefore, as all of the requirements of section 9-5 of the GST Act are met, GST is payable on your supplies of supervision.

Question 4

Summary

Your supplies of workplace training and professional development workshops are not GST-free under paragraph 38-85(a) of the GST Act because this training does not meet the definition of education course in section 195-1 of the GST Act.

There are no other provisions of the GST Act under which your supplies of this training are GST-free.

As all of the requirements of section 9-5 of the GST Act are met in respect of your supplies of this training, GST is payable on your supplies of these services.

Detailed reasoning

Your supplies of workplace training and workshops meet the requirements of paragraphs 9-5(a) to 9-5(d) of the GST Act.

There are no provisions of the GST Act under which your supplies of workplace training and workshops could be input taxed.

Therefore, what remains to be determined is whether your supplies of workplace training and workshops are GST-free.

As these supplies involve training people, the relevant GST exemption provision to consider is paragraph 38-85(a) of the GST Act.

Your supplies of workplace training and workshops are not courses of education leading to qualifications that are imposed as a legal requirement for entry to, or commencing the practice of, particular professions or trades in Australia nor does a professional or trade association impose such a qualification.

Therefore, you are not supplying professional or trade courses under these scenarios for the purposes of the definition of professional or trade course in the GST Act.

Your supplies of workplace training and workshops are not supplies of any of the other types of education course listed in section 195-1 of the GST Act

Therefore, your supplies of workplace training and workshops are not GST-free under paragraph 38-85(a) of the GST Act.

There are no other provisions of the GST Act under which your supplies of workplace training and workshops are GST-free.

Therefore, as all of the requirements of section 9-5 of the GST Act are met, GST is payable on your supplies of workplace training and workshops.

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