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Edited version of private advice
Authorisation Number: 1012653785467
Ruling
Subject: Goods and services tax (GST) and disability care services
Question
Are your supplies of the following care services to the client GST-free?
Personal assistance including individual attention, supervision and physical assistance in the home and in the community.
Answer
Yes.
Relevant facts and circumstances
You are registered for GST.
You are providing personal assistance including individual attention, supervision and physical assistance in the home and in the community to a disabled person.
The services are prescribed as part of the client's Individual Support Plan and Daily Support Plan.
The client does not live in a nursing home.
You provide a number of hours of personal assistance to the client each week, predominantly in the client's home with up to a certain number of hours in the community.
You do not receive government funding to provide the services.
The client is funded under a certain program. This funding is paid by the government to a host provider organisation - X (separate to you). The host provider then transfers money into the family's bank account to pay for your services. You raise the invoice for the supply of services with the parent's names as the customer.
The client is not a participant in the National Disability Insurance Scheme.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 subsection 7-1(1)
A New Tax System (Goods and Services Tax) Act 1999 section 9-5
A New Tax System (Goods and Services Tax) Act 1999 subsection 38-30(3)
A New Tax System (Goods and Services Tax) Act 1999 section 195-1
Reasons for decision
Summary
You are making GST-free supplies under subsection 38-30(3) of the GST Act.
Detailed reasoning
Subsection 38-30(3) of the GST Act states:
A supply of *home care is GST-free if the supply is of services:
a) that are provided to one or more aged or disabled peoples; and
b) 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.
Section 195-1 of the GST Act provides that home care means home care as defined in section 45-3 of the Aged Care Act 1997.
Section 45-3 of the Aged Care Act 1997 states that home 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. Residential care is care provided to a person who is in a nursing home.
The services covered by item 2.1 of Part 2 of Schedule 1 to the Quality of Care Principles (item 2.1) are:
Personal assistance including individual attention, supervision and physical assistance in the home and in the community.
Services of the kind listed in paragraphs (a) to (f) in item 2.1 are covered by paragraph 38-30(3)(b) of the GST Act.
Subsection 38-30(3) of the GST Act does not require that such services be performed within the patient's residence, and accordingly, these services will be GST-free under subsection 38-30(3) of the GST Act (where the client is not being provided with residential care) irrespective of whether those services are provided within a patient's home or whilst away from their home. For example, services to assist a person while eating will be GST-free irrespective of whether provided within a patient's home or whilst eating at a restaurant.
Supervision and attendance at community and social activities to be available to provide services of personal assistance which are similar in nature to those listed in paragraphs (a) to (f) of item 2.1 are covered by paragraph 38-30(3)(b) of the GST Act.
Assisting a client to play lawn bowls by standing beside them and steadying them while they roll the bowls and collecting the bowls or assisting them to play in other ways are services that are covered by paragraph 38-30(3)(b) of the GST Act.
It is not a requirement that the supplier of a service receives government funding in order to make a GST-free supply under subsection 38-30(3) of the GST Act.
You are providing care consisting of a package of personal care services and other personal assistance and providing this care to a person who is not being provided with residential care. Therefore, you are providing home care to the client in question.
You provide the care to a disabled person. Therefore, you meet the requirement of paragraph 38-30(3)(a) of the GST Act.
You are providing to the client personal assistance including individual attention, supervision and physical assistance in the home and in the community.
These services are services specifically listed in paragraphs (a) to (f) of item 2.1 or are similar in nature to such services. Therefore, you meet the requirement of paragraph 38-30(3)(b) of the GST Act.
As you meet the requirements of subsection 38-30(3) of the GST Act, your supplies of the services in question to the client in question are GST-free. Therefore, GST is not payable on your supplies of these services to the client.