Edited version of your private ruling

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Ruling

Subject: GST and services provided to aged or disabled clients

Question 1

Are you making a GST-free supply under subsection 38-30(3) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) when you provide personal care services under a direct arrangement with an aged or disabled person who receives no funding?

Answer

Yes, you are making a GST-free supply when you provide personal care services under a direct arrangement with an aged or disabled person who receives no funding where the services are of a kind covered by item 2.1 (daily living activities assistance) of Part 2 of Schedule 1 to the Quality of Care Principles 1997 (item 2.1 of the QCP) under subsection 96-1(1) of the Aged Care Act 1997.

To the extent that the supply of the services does not satisfy the requirements of subsection 38-30(3) of the GST Act, they will be a taxable supply under section 9-5 of the GST Act.

Question 2

Are you making a GST-free supply under subsection 38-30(3) of the GST Act when you provide personal care services under a direct arrangement with an aged or disabled person who receives funding?

Answer

Yes, you are making a GST-free supply when you provide personal care services under a direct arrangement with an aged or disabled person who receives funding where the services are of a kind covered by item 2.1 of the QCP.

To the extent that the supply of the services does not satisfy the requirements of subsection

38-30(3) of the GST Act, they will be a taxable supply under section 9-5 of the GST Act.

Question 3

Are you making a GST-free supply under subsection 38-30(3) of the GST Act when you provide personal care services to aged or disabled persons pursuant to a written agreement that you have with entity A?

Answer

No, the personal care services that you provide to aged or disabled persons pursuant to a written agreement that you have with entity A where entity A is the recipient of the supply of services are not GST-free supplies. The supply of personal care services, in this case, satisfy the requirements of section 9-5 of the GST Act, and as such, are taxable supplies on which GST is payable.

Question 4

Are you making a GST-free supply under subsection 38-30(4) of the GST Act when you provide care services to disabled persons under an arrangement you have with Entity B?

Answer

You will be making a GST-free supply under subsection 38-30(4) of the GST Act if you receive funding from the state in connection with the supply of care services you make provided the supply is of a kind that the Aged Care Minister has determined in writing to be GST-free.

However, as you have provided only limited information in relation to the arrangement you have with entity B, you will need to closely examine the relevant transactions to identify to whom a supply is made and how the GST law applies.

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 registered for the goods and services tax (GST).

You provide personal care, home care and maintenance, transport, respite care and other services to aged and disabled persons in their own homes.

There are three different arrangements under which you provide your services for or in relation to which you do not receive government funding:

· the services are provided directly to an individual who is billed for the cost of the services, pays you directly from their own personal financial resources and does not receive any government funding;

· the services are provided directly to an individual who is billed for the cost of the services, pays you directly and receives funding from a government department. An entity, entity C, has appointed an agent, entity D, to manage aspects of entity C's accounting functions. There is no agreement / contract between you and entity C or entity D. You are selected by the individual to provide the required services and you bill the individual for the cost of these services. The individual may then be entitled to receive funding from entity C or may receive money from a relative as a financial arrangement between the individual and the provider of the funds;

· the services are paid for by various organisations including entity A. Normally, a purchase order is provided by the organisation for the provision of services up to a specific dollar value. Following the delivery of the services, you bill the organisation which authorised the services. You have advised that although such services are arranged and authorised by one of these organisations, the services are provided to the claimant and not directly provided to the organisations.

Under another arrangement, your services are paid for by entity B. Normally, entity B issues a purchase order for the provision of services up to a specific dollar value. Following the delivery of the services, you bill entity B.

You have provided a copy of a written agreement (Contract) between you and entity A which contains the following relevant recitals, terms and conditions pursuant to which you supply your services:

· entity A will identify relevant clients, whose names and addresses will appear on a Purchase Requisition that will be in or substantially to the form set out in this Contract, as needing the specific services identified in respect of each individual relevant client

· you hold yourself out as being ready, willing and able to deliver the services to the relevant clients and in reliance on the warranties you have given, entity A has agreed to engage you to provide those services to those clients on such terms as are recorded in the remainder of this contract

· you have agreed with entity A the cost of the services you will provide

· you warrant that you have the expertise necessary to deliver the services

· entity A undertakes to make prompt payment of accounts to you on presentation of a numbered invoice where the service has been rendered, and where services for which payment is required match services requested on the purchase requisition as presented to you by entity A prior to services being rendered

· the price set out in the Contract represents the GST exclusive supply price. If GST is payable in relation to any services supplied under the Contract, an amount of not more than 10% shall be added to the GST exclusive supply price, to reflect the net cost of the GST payable to you in respect of the services, and

· the specifications for personal care that a personal care worker may be expected to perform include:

· bathing, showering and sponging in bed

· assistance with dressing and undressing

· assistance with grooming - hair and shaving

· assistance with teeth and denture cleaning

· changing of prescribed continence products, and

· application of appropriate aids and splints.

You have advised that the services you provide also include:

· meal preparation

· monitoring medication

· undertaking the patient's grocery shopping without the patient present

· travel

· domestic chores (for example, gardening and home maintenance)

· rehabilitation, and

· social and community activities.

You have confirmed that you have to date treated the provision of personal care and other services as taxable supplies.

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 subsection 9-15(1)

A New Tax System (Goods and Services Tax) Act 1999 subsection 9-15(2)

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

A New Tax System (Goods and Services Tax) Act 1999 subsection 38-30(3)

A New Tax System (Goods and Services Tax) Act 1999 subsection 38-30(4)

Reasons for decisions

Question 1

Are you making a GST-free supply under subsection 38-30(3) of the GST Act when you provide personal care services under a direct arrangement with an aged or disabled person who receives no funding?

Summary

Yes, you are making a GST-free supply when you provide personal care services under a direct arrangement with an aged or disabled person who receives no funding to the extent that the services are of a kind covered by item 2.1 of the QCP.

Detailed reasoning

Subsection 7-1(1) of the GST Act provides that GST is payable on taxable supplies.

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

· you make the supply for consideration

· the supply is made in the course or furtherance of an enterprise that you carry on

· the supply is connected with Australia, and

· 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.

If all the elements of section 9-5 of the GST Act are satisfied, a supplier is making a taxable supply and is liable to pay GST to the ATO on all supplies made, unless they are GST-free or input taxed.

The input taxed provisions in Division 40 of the GST Act do not apply to the facts in this case.

As you provide personal care services to aged or disabled people in their own homes, the question that arises is whether the supplies are GST-free under section 38-30 of the GST Act which sets out the requirements for the GST-free supplies of community care.

You have confirmed that you do not receive government funding for or in relation to the services you provide under this direct arrangement.

Therefore, of relevance to this issue, is subsection 38-30(3) of the GST Act.

Subsection 38-30(3) of the GST Act states:

A supply of *community care is GST-free if the supply is of services:

1. that are provided to one or more aged or disabled people; and

2. that are of a kind covered by item 2.1 (daily living activities assistance) of Part 2 of Schedule 1 to the *Quality of Care Principles

(* indicates a term defined in section 195-1 of the GST Act.)

For a supply of services to be GST-free under subsection 38-30(3) of the GST Act, it must first be determined if it is a supply of 'community care'.

Section 195-1 of the GST Act defines 'community care' as having the meaning given by section
45-3 of the Aged Care Act 1997 which provides that community care is care consisting of a package of personal care services and other personal assistance provided to a person who is not being provided with residential care.

You have advised that the personal care services you provide directly to persons are provided to them in their homes and that they receive no funding for the services. It follows that these services you provide come within the meaning of community care pursuant to subsection 45-3(1) of the Aged Care Act 1997.

As you provide the community care to aged or disabled persons, the first requirement in paragraph 38-30(3)(a) of the GST Act is satisfied.

Paragraph 38-30(3)(b) of the GST Act requires that the care services provided must be of a kind covered under item 2.1 of the QCP.

Item 2.1 of the QCP states:

Personal assistance, including individual attention, individual supervision, and physical assistance, with:

(a) bathing, showering, personal hygiene and grooming

(b) maintaining continence or managing incontinence, and using aids and appliances designed to assist continence management

(c) eating and eating aids, and using eating utensils and eating aids (including actual feeding if necessary)

(d) dressing, undressing, and using dressing aids

(e) moving, walking, wheelchair use, and using devices and appliances designed to aid mobility, including the fitting of artificial limbs and other personal mobility aids

(f) communication, including to address difficulties arising from impaired hearing, sight or speech, or lack of common language (including fitting sensory communication aids), and checking hearing aid batteries and cleaning spectacles

Excludes hairdressing.

You have advised that some of the services you provide are of a kind covered by item 2.1 of the QCP. Accordingly, the requirement in paragraph 38-30(3)(b) of the GST Act is satisfied for those services. As such, those services satisfy the requirements of subsection 38-30(3) of the GST Act and will be GST-free.

You have also advised that some of the services you provide are not covered by Item 2.1 of the QCP and they include:

· meal preparation

· monitoring medication

· undertaking the patient's grocery shopping without the patient present

· travel

· domestic chores (for example, gardening and home maintenance)

· rehabilitation, and

· social and community activities.

The supply of these services will be taxable as the requirements of section 9-5 of the GST Act are satisfied and GST is payable on them.

Where a supply comprises both GST-free and taxable components it will be a mixed supply.

If the supply is a mixed supply, you will need to apportion the consideration between the component that is taxable and the component that is GST-free. Goods and Services Tax Ruling GSTR 2001/8 provides guidance on how to apportion the consideration between the components.

Conclusion

You are making a GST-free supply of community care under subsection 38-30(3) of the GST Act when you provide personal care services under a direct arrangement with an aged or disabled person who receives no funding where the services are of a kind covered by item 2.1 of the QCP.

To the extent that the supply of the services does not satisfy the requirements of subsection
38-30(3) of the GST Act, they will be a taxable supply under section 9-5 of the GST Act.

Question 2

Are you making a GST-free supply under subsection 38-30(3) of the GST Act when you provide personal care services under a direct arrangement with an aged or disabled person who receives funding?

Summary

Yes, you are making a GST-free supply when you provide personal care services under a direct arrangement with an aged or disabled person who receives funding where the services are of a kind covered by item 2.1 of the QCP.

To the extent that the supply of the services does not satisfy the requirements of subsection
38-30(3) of the GST Act, it will be a taxable supply under section 9-5 of the GST Act.

Detailed reasoning

As discussed in Question 1 above, your supply of care services is GST-free to the extent that the requirements of subsection 38-30(3) of the GST Act are satisfied.

You have asked us to consider the circumstances in which you provide personal care services under a direct arrangement with an aged or disabled person who receives funding from a government department in relation to the services you provide.

You have advised that you are selected by the aged or disabled person to provide the required services. You bill that person for the cost of the services and they pay you directly. That person may then be entitled to receive funding from entity C or may receive money from a relative pursuant to a financial arrangement between himself or herself and the provider of the funds.

In relation to the funds received by the aged or disabled persons from a government department, you have advised that entity C has appointed an agent, entity D, to manage aspects of entity C's accounting functions. There is no agreement or contract between you and entity C or entity D.

On the basis of the information provided, you enter into agreements directly with the persons to provide your services to them.

In a two party transaction, such as when you contract with the aged or disabled person for the provision of services, the services supplied to that entity are typically also provided to that entity.

The ATO has considered the concept of 'supply' in the context of arrangements involving a supplier and ultimate recipient as well as in the context of tripartite arrangements in Goods and Service Tax Ruling GSTR 2006/9 (see explanation in Question 3 below).

In the circumstances in this question, your services are supplied to the aged and disabled persons and not to entity C or entity D.

Therefore, where the supply of the personal care and other services satisfy the requirements of subsection 38-30(3) of the GST Act, they will be GST-free. To the extent the supply of the services does not satisfy the requirements of subsection 38-30(3) of the GST Act, they will be a taxable supply under section 9-5 of the GST Act.

As discussed in Question 1 above, where a supply comprises both GST-free and taxable components it will be a mixed supply. If the supply is a mixed supply, you will need to apportion the consideration between the component that is taxable and the component that is GST-free.

Question 3

Are you making a GST-free supply under subsection 38-30(3) of the GST Act when you provide personal care services to aged or disabled persons pursuant to a written agreement with entity A?

Summary

No, the personal care services that you provide to aged or disabled persons pursuant to a written agreement that you have with entity A where entity A is the recipient of the supply of services are not GST-free supplies. The supply of personal care services, in this case, satisfy the requirements of section 9-5 of the GST Act, and as such, are taxable supplies on which GST is payable.

Detailed reasoning

The arrangement under which you provide your services (other than when you contract directly with the aged or disabled persons) involves more than two parties (sometimes referred to as tripartite transaction or arrangements) consisting of:

· entity A through which the supply of services are administered to some extent

· the aged or disabled person, and

· you, the supplier of personal care services.

This is the setting in which section 9-5 or subsection 38-30(3) of the GST Act are to be applied. As stated in Question 2 above, in a two party transaction, such as when you contract with the aged or disabled person for the provision of services, the services supplied to that entity are typically also provided to that entity.

Under a tripartite arrangement, it is possible that a supply is 'made' to one entity under the terms of an agreement, but the supply is 'provided' to another entity (see paragraphs 130 to 176 of GSTR 2006/9).

The term 'made' in the context of 'a supply made' takes its meaning from the definition of 'recipient' in section 195-1 of the GST Act:

'Recipient, in relation to a supply, means the entity to which the supply is made'.

'Provide' is used in contrast with 'made' to distinguish between the contractual flow of the supply to the recipient (the entity to which the supply is made) and the actual flow of the supply to another entity (the entity to which the supply is provided) (paragraphs 130 to 133 of GSTR 2009/6).

These concepts are important in relation to your circumstances because under the relevant GST health provisions including section 38-30of the GST Act, the supply is only GST-free where an individual receiving that service or specific health treatment is the recipient of that supply. This outcome results from the specific wording in some health provisions, whilst in other provisions it is due to the nature of the services themselves. This means that a GST-free supply of a health service cannot be made to a business entity or a non-profit body (see paragraph 155 of GSTR 2006/9).

The difficulty, in your circumstances, in tripartite transactions is how to identify to whom a supply is made.

Paragraph 117 of GSTR 2006/9 sets out the following propositions which are helpful in an analysis of transactions:

Examining the agreement or other reciprocal legal relationships is the starting point in analysing the arrangements you have with various entities in providing personal care and other services.

In the circumstances of the Contract you have entered into with entity A, you are to provide personal care and other services to entity A's aged or disabled clients. The Contract sets out in writing the terms and conditions pursuant to which you will supply your services. Entity A issues you with a purchase requisition setting out the goods and/or services that they require you to provide to their clients being the aged or disabled persons. Under the Contract, entity A has undertaken to make prompt payment of accounts to you on presentation of a numbered invoice. Entity A has entered into an agreement with you which imposes binding obligations.

Under the Contract, you have made a supply of services to entity A. Entity A is the recipient of the supply notwithstanding that you have provided the services to the aged or disabled persons. As a GST-free service cannot be made to a business entity or non-profit body, a supply of services that would have otherwise been GST-free under subsection 38-30(3) of the GST Act had it been made and provided to the aged or disabled person, will not be GST-free when the supply is made to entity A.

The supply of services you make to entity A pursuant to the Contract will be a taxable supply as the requirements under section 9-5 of the GST Act will be satisfied.

Question 4

Are you making a GST-free supply under subsection 38-30(4) of the GST Act when you provide services to aged or disabled persons under an arrangement you have with entity B?

Summary

You will be making a GST-free supply if the circumstances are that you receive funding from the state, in connection with the supply of services you provide which are included in the care services that the Aged Care Minister has determined to be GST-free to persons who are 'targeted persons', so that the requirements of subsection 38-30(4) of the GST Act are satisfied.

However, as you have provided only limited information in relation to the tripartite arrangement, you will need to closely examine the relevant transactions to identify to whom a supply is made and how the GST law applies.

Detailed reasoning

Subsection 38-30(4) of the GST Act states:

A supply of care is GST-free if:

(a) the supplier receives funding from the Commonwealth, a State or a Territory in connection with the supply; and

(b) the supply of the care is of a kind determined in writing by the *Aged Care Minister to be similar to a supply that is GST-free because of subsection (2).

For the purposes of paragraph 38-30(4)(a) of the GST Act, it is considered that a payment constitutes 'funding from the Commonwealth, a State or a Territory' if the funds are sourced from Commonwealth, State or Territory budgets under a government funded care program.

We understand that entity B makes payments out of a fund. It may be that these monies can be considered to be sourced from a state budget under a government funded care program and, essentially, government monies.

If that is the case, as you receive payment from entity B to provide services to persons requiring care, it may be that you can be considered to have received 'funding from a state in connection with the supply' and satisfy the first requirement in subsection 38-30(4) of the GST Act.

The second requirement of subsection 38-30(4) of the GST Act is that the supply of the care must be of a kind determined in writing by the Aged Care Minister to be similar to a supply that is GST-free because of subsection 38-30(2) of the GST Act.

The Minister has made GST-free supply (Care) Determination 2000 (Care Determination) for the purposes of paragraph 38-30(4)(b) of the GST Act.

Clause 4 of the Care Determination provides that the supply of care of a kind mentioned in Schedule 1 to the Care Determination (Schedule 1) to a targeted person is similar to a supply that is GST-free because of subsection 38-30(2) of the GST Act.

The term 'targeted person' is defined in the Care Determination to mean a frail, older person or a younger person who:

· has a moderate, severe or profound disability (including addiction to a drug)

· lives at home, and

· would, in the absence of services of the kind mentioned in Schedule 1 to the Care Determination, be at risk of prematurely or inappropriately needing:

(i)  long term care in a hospital or other institution, or

(ii) residential care within the meaning of the Aged Care Act.

You advised that the persons you provide your services to include persons who suffer from disabilities and live in their own homes. If those persons would require hospital care or residential care if not for your services, they meet the definition of a 'targeted person' in the Care Determination.

Schedule 1 to the Care Determination lists the following care services for targeted persons:

Item Service

1 Home help

2 Personal care

3 Home maintenance

4 Home modification

5 Provision of food

6 Provision and delivery of meals at home or at a day care or similar centre

7 Respite care

8 Transport to and from day care or similar centres and for shopping trips, social outings and for health-related purposes

9 Community paramedical services

10 Community nursing

11 Assessment of the person's care needs

12 Referral to other community care services

13 Training in the use of aids and appliances and in how to get the most out of the other services mentioned in this Schedule

14 Individual care planning or case management

15 Provision of basic equipment for social support excluding the provision of aids and appliances under paragraph 7(3)(b) of the Schedule to the Home and Community Care Act 1985

16 Day care

17 Linen services

18 Counselling

19 Community advocacy for a purpose mentioned in section 81-1 of the Aged Care Act 1997

20 Medication management

21 Provision and monitoring of personal alert systems

22 Provision of therapeutic supplies and services under the program known as the Psychogeriatric Unit Program administered by the Commonwealth

23 Continence management

To satisfy the second requirement of subsection 38-30(4) of the GST Act, the services that are supplied to persons who meet the definition of 'targeted person' must be listed in Schedule 1 to the Care Determination as being of a kind determined in writing by the Aged Care Minister to be similar to a supply that is GST-free because of subsection 38-30(2) of the GST Act.

You have asked us to consider the services you provide to aged or disabled persons under your arrangement with entity B. In particular, you have asked whether your services fall within the scope of subsection 38-30(4) of the GST Act if you receive payment for your services from entity B from funds that are sourced from a state government budget in connection with the supply.

Your arrangement with entity B and the persons to whom you provide your services is a tripartite arrangement. As such, the transactions require close examination to identify to whom you make your supply. GSTR 2006/9 explains that examining the agreement or other reciprocal legal relationships is the starting point in analysing the arrangements you have with various entities in providing personal care and other services.

The propositions set out in GSTR 2006/9 will help you in analysing the transactions involved in each arrangement so as to identify the relevant proposition and appropriate GST treatment.

For example, if you use Proposition 14 in your analysis, you may need to consider whether services you provide to the persons under the arrangement with entity B are supplied to the persons and not to entity B. Entity B may merely be a third party payer and not the recipient of the supply.

Paragraph 177 of GSTR 2006/9 explains that subsection 9-15(1) of the GST Act provides that the consideration for a supply includes any payment 'in connection with', 'in response to' or 'for the inducement of' a supply of anything.

Subsection 9-15(2) of the GST Act provides that the payment does not have to come from the recipient of the supply.

In such a case, if you receive payment from entity B for providing services to persons, it may be that you can be considered to have received 'funding from the state in connection with the supply'. Where you provide the services to persons who are 'targeted persons', subsection 38-30(4) of the GST Act may be satisfied and the supply will be GST-free.

In circumstances involving GST-free community care and third party payments (where the primary contract for care and payment resides with the injured person and the care provider), the payment for services by a third party does not affect the underlying classification of supply.

Conclusion

The services you provide include personal care, home care and maintenance, transport, and respite care.

You will be making a GST-free supply if the circumstances are that you receive funding from the state in connection with the supply of services you provide and the services are included in the care services that the Aged Care Minister has determined to be GST-free under subsection
38-30(4) of the GST Act.

However, as you have provided limited information in relation to your arrangement with entity B, you are required to closely examine the relevant transactions to identify to whom you are making your supply and how the GST law applies.

Additional information

Correcting GST mistakes

You have included GST for the provision of your care services. Some of the services are GST-free and the GST amount that was charged and remitted to the ATO will be refunded only if you can demonstrate to the ATO that you have reimbursed the incorrectly charged GST amount to the recipients of your supply who are not registered for GST.

Subsection 105-65(1) of Schedule 1 to the Taxation Administration Act 1953 (TAA) provides that the Commissioner is not required to refund or credit the overpaid amount to the supplier, but has the discretion to do so if:

· the ATO is satisfied that the supplier has reimbursed the recipient for the GST included in the price of the supply; and

· the recipient is not registered nor required to be registered for the GST.

Any such refund must be made to the original supplier of the goods or services on which there has been an overpayment, and cannot be made to another party such as the supplier's customer.

It is possible for a supplier to claim a refund by revising their previous activity statements in which GST was reported incorrectly. If a supplier has an entitlement to a refund, it may be also possible to claim it on the current activity statement using the concessions outlined in the ATO publication entitled Correcting GST mistakes (NAT 4700-07.2004).

A supplier is also able to claim a refund of GST using the form Notification of entitlement to GST refund (NAT 11719-07.2006), or by applying in writing to the ATO at PO Box 9935 in your capital city. Such a written application should include the following information:

· the name of the supplier

· the suppliers Australian Business Number

· the name of a contact person and their details

· the amount of overpayment (if known)

· the tax period or tax periods to which the overpayment relates, and

· the nature of the credit or refund and the circumstances under which the credit or refund arose, for example a supply was incorrectly treated as taxable or a clerical error.

There is a four year time limit on claiming a GST refund. The time limit for a GST refund takes effect four years from the end of the tax period of the relevant activity statement in which the transaction was included.

The time limits and dollar amount thresholds applicable in relation to refunds are provided in the following ATO publications, which can be downloaded from our website: www.ato.gov.au:

· Correcting GST mistakes (NAT 4700-07.2004), and

· Time limits on GST refund (NAT 11645-04.2007).

Date of effect of addendum to GSTR 2006/9 and transitional arrangements

An addendum to GSTR 2006/9 was issued on 14 December 2011.

In the context of health services, some entities have treated certain payments as being third party payments for GST-free supplies, based on the views in GSTR 2006/9 as it existed before the Addendum that issued on 14 December 2011. Some of these arrangements will be affected by that Addendum. In some cases, based on the views in that Addendum, such payments will instead be treated as consideration for taxable supplies to the payers. To allow these affected entities sufficient time to make necessary changes to their practices and systems, these entities may continue to rely on GSTR 2006/9 as it existed before the Addendum that issued on 14 December 2011, up to and including 30 June 2012.

In the circumstances described in paragraph 9A of GSTR 2006/9, if an affected supplier relies or has relied on GSTR 2006/9 to determine that they did not make a taxable supply then no GST is payable on that supply. This means that the amount of input tax credit to which a recipient is entitled is zero.

The Addendum that issued on 14 December 2011 reflects the law as enacted at the time of issue. However a measure has been announced that if enacted may affect the GST treatment of certain health related supplies made under multiparty arrangements.

In the 2011-12 Federal Budget, the government announced it would amend the GST law to ensure that certain supplies made to health insurers in the course of settling health insurance claims are GST-free and subsequently released a Consultation Paper on 7 June 2011. As a result of that consultation, the government released Exposure Draft legislation on Monday 21 November 2011, which proposed to extend the circumstances under which certain health-related supplies would be GST-free. For further details about this proposed measure, see the ATO website: www.ato.gov.au.