Edited version of your written advice

Authorisation Number: 1013036132821

Date of advice: 21 June 2016

Ruling

Subject: GST and an online platform

Question 1

Are your care seekers "targeted persons" under the GST-Free supply (Care) Determination 2000 (the determination)?

Answer

As the care givers are the suppliers of the domestic assistance service to the care seekers, it is up to the care givers to determine whether the care seekers meet the definition of "targeted persons" under the determination. Please see the reasons for the decision for further information.

Question 2

Is your supply of online platform services to enable care seekers to connect with care givers a taxable supply?

Answer

Yes

Relevant facts and circumstances

You are supplying an online platform which connects elderly and disabled people (care seekers) with local people (care givers) who can provide domestic assistance.

You are registered for GST.

Care givers and care seekers set up a profile on your online platform with details about themselves and they connect to enable care givers to supply the domestic assistance services to the care seekers.

The care givers services include companionship, assistance with errands, appointments, grocery shopping, meal preparation, cleaning, gardening, light home maintenance, laundry, transportation, social activities, help with IT and technology and help with bills.

You charge a percentage plus GST on every transaction.

It is up to the discretion of the care seekers to select who will provide the service and what services they want

Your contentions

You contend that your advertising is aimed at elderly and disabled people and you specify that you are a service for elderly and disabled people.

Relevant legislative provisions

GST-Free supply (Care) Determination 2000

Section 9-5 of A New Tax System (Goods and Services Tax) Act 1999

Section 9-40 of A New Tax System (Goods and Services Tax) Act 1999

Section 9-30 of A New Tax System (Goods and Services Tax) Act 1999

Reasons for decision

Question 1

Summary

As the care givers are the suppliers of the care service to the care seekers, it is up to the supplier to determine whether the care seeker meets the definition of a targeted person under the determination.

Question 2

Summary

The supply of an online platform to connect care seekers and care givers is not a GST-free supply. The fees you charge as an agent are therefore subjected to GST.

Detailed reasoning

Question 1:

You contended you make a supply to the care seekers and this is demonstrated by directing your advertising at elderly and disabled people and you specifying that you are a service for elderly and disabled people.

However, the information from your Terms and Conditions on your online platform indicates that there are 2 supplies:

• The first supply is your supply of maintaining an online platform and facilitation services to the care givers.

• The second supply is from the caregivers who make the supply of domestic assistance to the care seekers.

• You charge the care givers an amount (plus GST) per hour for maintaining the platform and facilitation services between the care givers and the care seekers.

• The care givers charge the care seekers an amount per hour for the services of domestic assistance.

You do not supply services which are covered under the determination it is the care givers who need to determine whether the care seekers meet the definition of "targeted persons" under the Determination to determine if their supply can be GST-free or not.

Question 2:

You make a taxable supply where you satisfy the requirements of section 9-5 of the GST Act, which states:

You make a taxable supply if:

(a) you make the supply for *consideration; and

(b) the supply is made in the course or furtherance of an *enterprise that you *carry on; and

(c) the supply is *connected with Australia; and

(d) you are *registered, or *required to be registered.

However, the supply is not a *taxable supply to the extent that it is *GST-free or *input taxed.

(*Denotes a term defined in the GST Act)

Your terms and conditions provide the following:

• Care givers provide the domestic assistance services

• All booking and transaction services occur on your platform.

• Care givers are independent contractors

• Care givers are responsible for recording their completed services on the platform.

• Your system automatically generates invoices which are sent to the care seekers on behalf of the care giver. The care giver has the option to edit these invoices before they are sent.

• You act as facilitators and are not a party to each transaction

• You do not have an obligation to settle disputes between the care seekers and the care givers.

• It is up to the discretion of the care seekers to select who will provide the service and what services they want

You meet the requirements of paragraphs 9-5(a) to 9-5(d) of the GST Act. This is because:

• you supply the services of maintaining an online platform and facilitation to the care givers for $XX (plus GST) per hour.

• you supply the services in the course or furtherance of an enterprise that you carry on

• the supply is connected with Australia since you supply your services in Australia, and

• you are registered for GST.

There are no provisions in the GST Act under which your supply of maintaining an online platform and facilitation services is input taxed or GST-free. As all of the requirements of section 9-5 of the GST Act are met, GST is payable on the fee of $XX (plus GST) per hour for your supply of maintaining an online platform and facilitation services.