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Edited version of your written advice
Authorisation Number: 1012890719823
Date of advice: 22 October 2015
Ruling
Subject: Health care services
Question
Are the Health Program services supplied by Entity A to Health funds, Government bodies and private fee paying individuals (together the 'clients') a GST-free supply under Subdivision 38-B of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?
Answer
Yes. The Health Program services supplied by Entity A to its clients are a GST-free supply under Subdivision 38-B of the GST Act.
Based on the facts, the supply of the Health Programs by Entity A satisfies the conditions of subsection 38-10(1) of the GST Act and are GST-free when supplied to a private fee paying individual. Where the supply of the Health Program is made to a third party insurer, compulsory third party scheme operator or Government agency, this supply will be GST-free pursuant to section 38-60 of the GST Act.
However where the recipient of the supply is a business entity not covered by the entity types set out in section 38-60 of the GST Act, the supply is a taxable supply.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 section 38-60
A New Tax System (Goods and Services Tax) Act 1999 section 38-10
A New Tax System (Goods and Services Tax) Act 1999 section 195-1