Edited version of private advice

Authorisation Number: 1052048722061

Date of advice: 21 October 2022

Ruling

Subject: GST - rehabilitation counselling

Question

Are your supplies as a Rehabilitation Counsellor GST-free under Section 38-10 'Other Health Services' of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?

Answer

No, Rehabilitation Counselling is not a listed supply in Section 38-10 nor are your supplies of Rehabilitation Counselling the appropriate treatment for the recipient of your supply.

This ruling applies for the following period:

1 July 20XX to 30 June 20XX

The scheme commences on:

1 July 20XX

Relevant facts and circumstances

You are registered for GST with ABN XXX.

You hold a XXX.

You are currently contracting your services as a Rehabilitation Consultant to X different businesses:

•         First is a company managing XXX rehabilitation.

•         Second is a company dealing with XXX rehabilitation and XXX.

•         Lastly you contract your services to a clinic providing counselling treatment services.

You have stated as a contractor you invoice the organisations you contract to for your services while they invoice the patients directly.

Relevant legislative provisions

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

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

Reasons for decision

Taxable supplies

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 the indirect tax zone; 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 section 195-1 of the GST Act)

GST-free 'other health services'

Supplies of health services are GST-free under section 38-10 if the GST Act if the services are:

a)    listed in the GST Act (listed in the table in subsection 38-10(1)

b)    performed by a recognised health professional in relation to the supply of services of that kind, and

c)    accepted in the relevant health profession as necessary for the appropriate treatment of the recipient of the supply.

Subsection 38-10 (a): The listed health services that can be GST-free under this exemption are:

To be GST-free under this exemption, the service must be one of the listed services and cannot just be similar to one of these services. Also, the recognised professional performing the service must be a recognised professional in relation to the services that are specifically listed.

'Rehabilitation Counselling' is not a service that is specifically listed in the GST Act in its own right. As such, rehabilitation counselling services supplied by a recognised professional in counselling, are not GST-free. In contrast however, where rehabilitation counselling services are supplied as part of a supply of 'psychology', by a recognised professional in relation to psychology, then those counselling services would be a GST-free supply of psychology (provided that the supply is generally accepted in the psychology profession as being necessary for the appropriate treatment of the recipient of the supply).

Subsection 38-10 (c): accepted in the relevant health profession as necessary for the appropriate treatment of the recipient of the supply.

The recipient of your supply is the organisations who you invoice and not the patient. As such you are not supplying rehabilitation treatment to the patient you are supplying contracted services to these organisations. These organisations then supply the services to the patient, albeit you are physically providing the service. As such, you are not making a GST-free supply of rehabilitation counselling or psychology services to these organisations. As you are registered for GST and you are making the supply of your contracted services in the course of your enterprise as a Rehabilitation consultant in Australia and you are receiving a fee for your service, your supply is a taxable supply under section 9-5 of the GST Act.