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Edited version of private advice
Authorisation Number: 1051680083593
Date of advice: 14 May 2020
Ruling
Subject: GST and supplies made to a public hospital
Question
Is the supply of your services to a government run public hospital a GST-free supply under subsection 38-60 (3) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?
Answer
Yes, the supply of your services to a government run public hospital is a GST-free supply under subsection 38-60 (3) of the GST Act.
Relevant facts and circumstances
· You are a registered medical practitioner.
· You have entered into a contract with a public hospital (the Hospital). You are not an employee of the Hospital.
· The scope of your services under the contract with the Hospital is to provide a certain service to the patients of the Hospital.
· The Hospital is a government run public hospital.
Relevant legislative provisions
Section 38-60 of the A New Tax System (Goods and Services Tax) Act 1999
Reasons for decision
Subsection 38-60 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) states:
If:
(a) a supply is a supply of a service to an * Australian government agency; and
(b) ) the service is the supplier making one or more other supplies of goods or services to an individual; and
(c) at least one of the other supplies is wholly or partly * GST-free under this Subdivision;
the first-mentioned supply is GST-free to the extent that the other supplies mentioned in paragraph (b) are GST-free under this Subdivision.
(terms marked with asterisks (*) are defined in section 195-1 of the GST Act)
· Is the Hospital an Australian government agency?
The term 'Australian government agency' is defined in section 995-1 of the Income tax assessment Act 1997 as follows:
Australian government agency means:
(a) the Commonwealth, a State or a Territory; or
(b) an authority of the Commonwealth or of a State or a Territory.
· It the Commissioners' view that a government run public hospital is an authority of the Commonwealth or State and thus an Australian Government agency for the purposes of paragraph 38-60(3)(a) of the GST Act. Accordingly the Hospital, which is a government run public hospital is an Australian government agency.
· the service is: the supplier making one or more other supplies of goods or services to an individual;
The other supplies you make are the specific services provided to individual patients.
· at least one of the other supplies is wholly or partly GST-free under this Subdivision
The specific services you provide to the individual patients are GST-free as a medical service under section 38-7 of the GST Act.
Conclusion
Given the supply you make to the Hospital meets the requirements of subsection 38-60(3) of the GST Act, it is a GST-free supply.