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This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law.

You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4.

Edited version of your private ruling

Authorisation Number: 1012611975169

Ruling

Subject: GST and supplies of meals by community organisations

Question

Is the provision by you of frozen meals to your clients GST-free?

Answer

Yes

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 a charitable institution endorsed for goods and services tax (GST) purposes and is registered for GST.

• You acquire frozen meals from an external third party in a similar industry.

• You are charged GST on these acquisitions.

• You provide these frozen meals to the elderly and other customers at their homes under a "Joint HACC Program".

• You receive funding from the Commonwealth Government in order to conduct this service.

Relevant legislative provisions

All references are to the A New Tax System (Goods and Services Tax) Act 1999:

Section 9-5

Section 9-30

Section 38-30

Reasons for decision

Summary

Under subsection 38-30(4) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act, a supply of meals is GST-free is GST-free if the supplier receives funding under the Home and Community Care Act 1985 (HACC) in connection with the supply and satisfies certain other criteria. As you receive such funding and satisfy the other requirements as evidenced by your HACC Agreement, the supply of the frozen meals from you to your clients will be GST-free.

Detailed reasoning

Subsection 9-30(1) of the GST Act states that a supply is GST-free if it is GST-free under Division 38 of the GST Act or it is a supply of a right to receive a supply that would be GST-free.

Subdivision 38-B of the GST Act sets out the requirements for a supply relating to Health to be GST-free.

Under section 38-30 of the GST Act, certain supplies will be GST-free.

Under subsection 38-30(4) the supply of meals is GST-free where the supplier receives funding from the Commonwealth, a state or a territory in connection with the supply and it is made to 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, be at risk of prematurely or inappropriately needing

        n long term care in a hospital or other institution, or

        n residential care within the meaning of the Aged Care Act 1997.

Applying the Legislation to Your Situation

You are funded for the performance of your activities (the provision of meals) under the HACC. Under subsection 38-30(4) of the GST Act, a supply of meals is GST-free if the supplier receives funding under the HACC in connection with the supply and it is made to 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, be at risk of prematurely or inappropriately needing

        n long term care in a hospital or other institution, or

        n residential care within the meaning of the Aged Care Act 1997.

Accordingly, as you receive such funding and satisfy the other requirements as evidenced by your HACC Agreement, the supply of the frozen meals from you to your clients will be GST-free.


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