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Edited version of your private ruling
Authorisation Number: 1012542734634
Ruling
Subject: Massage therapy
Question 1
Is the massage therapy a kind of health services specified in the table in subsection 38-10(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?
Decision
No.
Question 2
Is the supply of the massage therapy GST-free?
Decision
No.
Relevant facts:
· You are registered for goods and services tax (GST).
· You provide massage therapy services.
· You hold a Diploma in remedial massage.
· You confirmed that you do not provide any medical services or other health services other than remedial massages to your clients.
· You have been given a provider number by a health fund for your practices.
· You are a member of the Australian Association of Massage Therapists (AAMT).
· The AAMT is the representative body for massage therapists throughout Australia.
· AAMT's members hold qualifications as massage therapists.
· Your clients are eligible for a cash rebate provided by the health fund for your services.
Reasons for decisions
Under the GST Act, GST is payable on taxable supplies you make.
Under section 9-5 of the GST Act, you make a taxable supply if:
· you make a 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.
A supply of massage service is not an input taxed supply. Next, we need to consider whether the service could be GST-free under Division 38 of the GST Act.
You advised that you hold a Diploma in remedial massage and you are a member of AAMT. You provide therapy massages to your clients. You have a provider number which will allow your clients to claim cash rebates from the health fund for your services.
The relevant section in Division 38 of the GST Act for health services is subsection 38-10(1) of the GST Act. The subsection provides that a supply of other health services is GST-free if:
a) it is a service of a kind specified in the table (Table) in subsection 38-10(1) of the GST Act,
b) the supplier is a recognised professional in relation to the supply of services of that kind, and
c) the supply is accepted in the profession as being necessary for the appropriate treatment of the recipient of the supply.
The other health services listed in the Table are as follows:
Item |
Service |
Item |
Service |
1 |
Aboriginal or Torres Strait Islander health |
12 |
Optometry |
2 |
Acupuncture |
13 |
Osteopathy |
3 |
Audiology, audiometry |
14 |
Paramedical |
4 |
Chiropody |
15 |
Pharmacy |
5 |
Chiropractic |
16 |
Psychology |
6 |
Dental |
17 |
Physiotherapy |
7 |
Dietary |
18 |
Podiatry |
8 |
Herbal medicine (including traditional Chinese herbal medicine) |
19 |
Speech pathology |
9 |
Naturopathy |
20 |
Speech therapy |
10 |
Nursing |
21 |
Social work |
11 |
Occupational therapy |
|
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To satisfy the requirement of paragraph 38-10(1)(a) of the GST Act, the service must be the provision of one of those actual services listed in the Table and not just something similar to one of those services. Massage therapy is not specifically listed in the Table or in any regulations. Therefore, massage therapy in itself does not satisfy the first requirement in subsection 38-10(1) of the GST Act.
A supply of massage therapy services may still be GST-free where the supplier is supplying one of the services listed in the Table and massage therapy is a standard technique or a component of the supply of that listed service.
By way of an example, if a registered physiotherapist provides massage therapy as a component of physiotherapy treatment for a patient and the massage therapy is generally accepted within the physiotherapy profession as being necessary for the appropriate treatment of the patient, then the supply would be GST-free. However, this is not the case in your situation.
Whilst you are a qualified remedial massage therapist who is recognised as a professional in your industry, massage therapy is not listed in the Table. Furthermore, you are not a recognised professional in relation to any of the other services listed in the Table. Therefore, the requirements in paragraphs 38-10(1)(a) and (b) of the GST Act are not satisfied.
As your supply of massage therapy services does not meet the requirements of subsection 38-10(1) of the GST Act the supply of your services is not GST-free. Additionally, the supply of your massage therapy services is not GST-free under any other provision of the GST Act or under a provision of another Act. Therefore, the supply of your massage therapy services is a taxable supply under section 9-5 of the GST Act.
The rulings in the register have been edited and may not contain all the factual details relevant to each decision. Do not use the register to predict ATO policy or decisions.