A New Tax System (Goods and Services Tax) Act 1999

Chapter 3 - The exemptions

Part 3-1 - Supplies that are not taxable supplies

Division 38 - GST-free supplies

Commissioner ' s Remedial Power

Note: A Commissioner ' s Remedial Power modification is relevant to this part of the tax law. Taxation Administration (Remedial Power - Certificate for GST-free supplies of Cars for Disabled People) Determination 2020 (F2020L01079) modifies the operation of s 38-510(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) and any other provisions of a taxation law whose operation is affected by the modified operation of s 38-510(1) .

The operation of the relevant provision is modified as follows:

For the purposes of s 370-5 in Sch 1 to the Taxation Administration Act 1953 , s 38-510(1) of the GST Act operates as if the following paragraph is substituted for paragraph 38-510(1)(a) :

(a) has a current certificate of medical eligibility issued by a medical practitioner certifying that the individual has lost the use of one or more limbs to such an extent that he or she is unable to use public transport, and

This modification applies in respect of a supply of a car or car parts to an individual made on or after 9 December 2020.

This modification does not affect the GST-free supply of a car or car parts to an individual in relation to a person who holds a current disability certificate issued by the Managing Director of the nominated company (within the meaning of Part 2 of the Hearing Services and AGHS Reform Act 1997 ) or an officer or employee of that company who is authorised in writing by the Managing Director.

An entity must treat a modification as not applying to it or any other entity if the modification would produce a less favourable result for it. The Commissioner is empowered by s 370-5 of Sch 1 to the Taxation Administration Act 1953 to make modifications, by legislative instrument, to ensure the law is administered to achieve its intended purpose or object.

Subdivision 38-B - Health

38-60 Third party procured GST-free health supplies

View history reference

Insurers

(1)
If:

(a) a supply is a supply of a service to an insurer; and

(b) the service is the supplier making one or more other supplies of goods or services to an individual; and

(c) at least one of the other supplies is:

(i) wholly or partly * GST-free under this Subdivision; and

(ii) for settling one or more claims under an * insurance policy of which the insurer is an insurer;

the first-mentioned supply is GST-free to the extent that the other supplies mentioned in paragraph (b) are GST-free under this Subdivision.

Note:

For subparagraph (c)(ii), the insurer may be an insurer of the policy because of a portfolio transfer (see section 78-118 ).

Compulsory third party scheme operators

(2)
If:

(a) a supply is a supply of a service to an * operator of a * compulsory third party scheme ; and

(b) the service is the supplier making one or more other supplies of goods or services to an individual; and

(c) at least one of the other supplies is:

(i) wholly or partly * GST-free under this Subdivision; and

(ii) made under the compulsory third party scheme;

the first-mentioned supply is GST-free to the extent that the other supplies mentioned in paragraph (b) are GST-free under this Subdivision.

Government agencies

(3)
If:

(a) a supply is a supply of a service to an * Australian government agency ; and

(b) the service is the supplier making one or more other supplies of goods or services to an individual; and

(c) at least one of the other supplies is wholly or partly * GST-free under this Subdivision;

the first-mentioned supply is GST-free to the extent that the other supplies mentioned in paragraph (b) are GST-free under this Subdivision.

Parties may agree for supply not to be GST-free

(4)
However, a supply is not GST-free (to any extent) under this section if the supplier and the * recipient have agreed that the supply, or supplies of a kind that include that supply, not be treated as GST-free supplies.

CCH Note

Act No 75 of 2012, s 3 and Sch 1 item 9 contained the following application provision:

9 Application of amendments
…

(2)
Subsection 38-60(4) of the A New Tax System (Goods and Services Tax) Act 1999 applies in relation to agreements made before, on or after 1 July 2012.

View history note

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