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This edited version has been archived due to the length of time since original publication.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 written advice

Authorisation Number: 1012664618122

Ruling

Subject: GST and services provided in relation to National Disability Insurance Scheme

Question

Are you making GST - free supplies under section 38-38 of the GST Act in relation to the delivery of services provided to the participants under the National Disability Insurance Scheme (NDIS)?

Answer

Yes.

Relevant facts and circumstances

    • You are a sole trader operating a consulting services and registered for goods and services tax (GST)

    • You have registered as a service provider with the National Disability Insurance Agency (NDIA) and your provider number is XXXXXXXX.

    • You have an AUSKEY number and currently you have participants in your case load.

    • You advised us that you comply with section 38-38 of the GST Act and confirmed the following:

      • Each participant has a plan determined by a NDIA.

      • The service provided is one of the reasonable and necessary supports specified in Participant's plan.

      • The plan has been developed by a planner and approved by NDIA and is currently in effect.

      • Each participant has a written agreement with you that identifies the participant, the services that you are providing, the time frame and the total cost.

    • You are registered to provide the following two services:

      • Assistance in coordinating or managing life stages, transitions and supports; and

      • Management of funding for supports in a participant's plan.

    • You wanted to know whether the services you provide are subject to GST or GST-free.

    • You have provided us with a copy of an agreement between you and a participant, NDIA participant activity record sheet and participant information and task detail sheet.

Relevant legislative provisions

A New Tax System (Goods and Services Tax) Act 1999 - subdivision 38-B

National Disability Insurance Scheme Act 2013

Reasons for decision

Supplies of various disability supports are GST-free under provisions in Subdivision 38-B of the GST Act where the suppier of such services receives government funding for the supplies and other requirements are satisfied.

Amendments to the GST Act have been made to ensure that certain supplies to a participant are also GST-free where the supply is of a kind determined by the Disability Services Minister and the supply meets the other requirements of section 38-38 of the GST Act.

From 1 July 2013, the following conditions must be met for a supply to a participant to be GST-free under section 38-38 of the GST Act. The supply must be:

    • to a participant for whom a plan is in effect under section 37 of the National Disability Insurance Scheme Act ("NDIS Act") which means the plan must be approved by the National Disability Insurance Agency ("The Agency")

    • of one or more of the reasonable and necessary supports specified in the statement of supports in the plan. A participant's plan will contain a statement of supports and will identify those that are approved as reasonable and necessary.

    • made under a written agreement between the supplier and the participant (or another person) that both:

      • identify the participant,

      • state that the supply is of one or more of the reasonable and necessary supports specified in the statement of supports in the plan.

    The written agreement can be between the supplier and a person other than the participant. Other people can include those who manage the plan and funding for the participant. This would include the Agency, a plan management provider registered with the Agency or someone like a guardian or relative of the participant.

    • of a kind determined in a legislative instrument by the Minister responsible for Disability Services.

The GST-free Supply (National Disability Insurance Scheme Supports) Determination 2013 ("the Determination") lists 22 kinds of supplies which are GST-free where the supply meets the other conditions in section 38-38 of the GST Act. The services which you are registered to provide are listed in Schedule 1 to the Determination.

The service of 'assistance in coordinating or managing life stages, transitions and supports' is listed at item 2 and 'management of funding for supports in a participant's plan' is listed at item 18 of the Schedule 1 to the Determination.

You confirmed to us that each participant has a plan determined by the NDIA and has a written agreement with the participant that the service to be provided is one of the reasonable and necessary supports specified in Participant's plan. The plan has been developed by a planner and approved by NDIA and is currently in effect.

Therefore, based on the facts provided, we consider that you are making GST-free supplies under section 38-38 of the GST Act in relation to the delivery of services provided to the participants under the NDIS as the supply satisfies all of the requirements of section 38-38 of the GST Act.


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