Edited version of private advice

Authorisation Number: 1052079349554

Date of advice: 31 January 2023

Ruling

Subject: GST - supplies

Question

Are lactation consulting supplies made by a registered Midwife GST-free under section 38-10 of the A New Tax System (Goods and Services) Act 1999 (GST Act) GST-free?

Answer

Midwifery isn't a listed under Other health services in the GST Act., While you are a registered professional with the Nursing and Midwifery board, and lactation consultancy is generally accepted as appropriate treatment to patients in your profession the supply to your patients will not be GST-free even if you were registered or required to be registered for GST.

This ruling applies for the following period:

XX XXX XXXX to XX XXX XXXX

Relevant facts and circumstances

•         XXX (You), is registered with ABN XXX but are not currently registered for GST.

•         You are a registered Midwife with the Nursing and Midwifery Board of Australia (NMBA) under Australian Health Practitioner Regulation Agency.

•         You completed your Bachelor of Midwifery at XXX in XXXX.

•         You are also an International Board Certified Lactation Consultant and have been since XXXX.

•         You conduct full assessments of your patients, including obstetrics, birth and medical history and also physical examinations of patients and babies.

•         You are a private consultant, and your service receives private health rebates for your patients from various private health funds.

•         A majority of your clients come to you by referral from either a GP, paediatrician, Maternal health nurse or Child health nurse.

•         Guidance was issued from the ATO XX XXX XXXXX with a withdrawn notice, the same day you re-applied for a ruling.

•         Upon contact with your tax representative by phone XX XXX XXXX, it was clarified you do not hold nursing qualifications.

•         The NMBA register has you listed solely as a Midwife.

Relevant legislative provisions

A New Tax System (Goods and Services Tax) Act 1999 Section 38-10

Reasons for decision

Taxable Supplies

Under section 9-5 of the GST Act, you make a taxable supply if:

(a)  You make a 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 (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.

As you are not registered for GST and have not supplied any information stating you are required to be registered, in the first instance the Commissioner does not need to determine whether these supplies are GST-free.

However, if the facts were that you are registered or required to be registered then the following would apply:

Other Health Services

Under Section 38-10 of the GST Act:

(1) A supply is GST-free if:

(a)  it is a service of a kind specified in the table in this subsection, or of a kind specified in the regulations; and

(b)  the supplier is a recognised professional in relation to the supply of services of that kind; and

(c)   the supply would generally be accepted, in the profession associated with supplying services of that kind, as being necessary for the appropriate treatment of the recipient of the supply.

Within the table mentioned in Section 38-10(1)(a) we find:

Conclusion

A service is GST-free under subsection 38-10(1) of the GST Act provided you are a recognised professional in one of the Health services listed, and the treatment you provide is generally accepted in the Health service profession as being appropriate treatment for a patient. As midwifery is not a listed health service, your supply of lactation services to patients will not be GST-free.