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Edited version of your written advice
Authorisation Number: 1051486499313
Date of advice: 22 February 2019
Ruling
Subject: GST and disability support services provided to NDIS participants and others
Question 1:
Is the supply of training facilities provided to organisations by you taxable for GST purposes?
Answer:
Yes.
Question 2:
Is the supply of transport services provided by you to NDIS participants and participants not covered under NDIS, taxable for GST purposes?
Answer:
The supply of transport services provided by you will be GST-free provided the supply satisfies all of the requirements of section 38-38 of the GST Act. Please refer to the reasons for decision.
Question 3
Is the supply of disability services such as respite care to participants not covered under NDIS, taxable for GST purposes?
Answer:
The supply of disability services such as respite care to participants not covered under NDIS will be GST-free provided the supply satisfies all of the requirements of subsection 38-25(3) or 38-30(3) of the GST Act. Please refer to reasons for decision.
This ruling applies for the following period:
Not applicable
The scheme commences on:
The scheme has commenced
Relevant facts and circumstances
● You are a NDIS disability service provider and registered for goods and services tax (GST).
● You are not an accredited training provider but provide training facilities such as training rooms for hire to other training providers.
● Transport services are provided by you to NDIS participants and participants not covered under NDIS.
● You claim the transport cost under the NDIS plan and invoices other participants who are not covered by the NDIS.
● You do not have a formal agreement with the participants in relation to transport services.
● You do not receive Government funding for their services.
● All new participants agree to sign a service agreement before commencing the services with you. However, this agreement is not registered with NDIA.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 – subsection 38-25(3) and 38-30(3)
A New Tax System (Goods and Services Tax) Act 1999 – section 38-38 and 38-40
Reasons for decision
You make a taxable supply if the supply satisfies all of the requirements of section 9-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act). You make a taxable supply if the supply is for consideration; and the supply is made in the course or furtherance of your enterprise; and the supply is connected with the indirect tax zone; and you are registered or required to be registered for GST.
You do not make a taxable supply to the extent that it is GST-free or input taxed.
The supply of training rooms for organisations to conduct training will not be GST-free or input taxed. Therefore, your supply of training rooms will be taxable as the supply will satisfy all of the requirements of section 9-5 of the GST Act.
Supply of health services
Supplies of various disability support services are GST-free under provisions in Subdivision 38-B of the GST Act where the supplier 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 Minister for Disability Services and the supply meets the other requirements under provisions of Subdivision 38-B of the GST Act.
Disability support provided to National Disability Insurance Scheme (NDIS) participants will be GST-free provided the supply satisfies all of the requirements of section 38-38 of the GST Act. Some NDIS participants may choose to have the National Disability Insurance Agency (NDIA) administer the funding on their behalf. If you supply disability supports to a participant and claim payments for the supports through the NDIA Provider Portal, the NDIA is paying you on behalf of the participants so you do not fall under the category of government funded.
Supply of disability support services is GST-free under section 38-38 of the GST Act, if the following conditions are met:
● the participant has a plan in effect;
● the supply is of reasonable and necessary supports that are specified in the statement of supports in the participant’s plan;
● there is a written agreement between you and the participant (or another person);
● the supplies are of a kind determined in a legislative instrument by the Minister responsible for Disability Services.
You provide transport services to NDIS participants. However, if a transport service is not included in the plan as reasonable and necessary support and not approved by the NDIA, then the supply of transport service will not be GST-free under section 38-38 of the GST Act.
The disability support services provided by you to any recipients or participants who may have a NDIS plan but the supply of those services do not satisfy the other requirements of section 38-38 of the GST Act as explained above, then those services will be taxable.
Section 38-40 of the GST Act provides that a supply of specialist disability services is GST-free provided the supplier receives funding under the Disability Services Act 1986 or under a complementary State law or Territory law in respect of the services.
In this case, you do not receive Government funding for their supply of disability support services and therefore, section 38-40 of the GST Act will not apply.
Subsection 38-25(3) of the GST Act provides that a supply of services is GST-free if:
● the services are provided to one or more aged or disabled people in a residential setting; and
● the Aged Care Minister has determined in writing that the services are of a kind covered by Schedule 1 to the Quality of Care Principles; and
● the service include and are only provided to people who require the services (care services) set out in:
1) item 2.1 (daily living activities assistance) of Part 2 of that Schedule; or
2) item 3.8 (nursing services) of Part 3 of that Schedule.
Subsection 38-30(3) of the GST Act provides that a supply of home care is GST-free if the supply is of services:
The disability support services such as respite care will be GST-free provided the services satisfy subsection 38-25(3) or 38-30(30 of the GST Act.
When a disability support service is not included in the NDIS plan and does not satisfy the other requirements of section 38-38 of the GST Act, then the service may be considered under other provisions of Division 38 B of the GST Act.
As explained above, if a transport service to a disable person is not included in the NDIS plan then the transport service provided by Interchange will be taxable supply