Edited version of private advice

Authorisation Number: 1052180310034

Date of advice: 13 October 2023

Ruling

Subject: GST - supplies of meal preparation and delivery services

Question

Does XXXX (You) make a supply of meal preparation and delivery services to eligible National Disability Insurance Scheme (NDIS) participants that are GST-free pursuant to section 38-38 of the A New Tax System (Goods and Services) Act 1999 (GST Act)?

Answer

Yes. You do make a supply of meal preparation and delivery services to eligible NDIS participants that are GST-free under section 38-38 of the GST Act.

This ruling applies for the following periods:

XX XXX 20XX to XX XXX 20XX

The scheme commenced on:

XX XXX 20XX

Relevant facts and circumstances

You have an ABN and are registered for GST.

You are a NDIS Registered Provider

You are not a registered charity.

You offer a meal preparation and delivery service to NDIS participants.

NDIS participants can place orders through Your website.

You provided a copy of the Agreement you enter into with the NDIS Participant.

Relevant legislative provisions

A New Tax System (Goods and Services Tax) Act 1999 section 38-38.

A New Tax System (Goods and Services Tax) Act 1999 section 195-1.

National Disability Insurance Scheme Act 2013.

Reasons for decision

GST-free supplies of supports to NDIS participants

Certain supports provided to NDIS participants are GST-free. Section 38-38 of the GST Act states:

A supply is GST-freeif the supply:

(a)  is a supply to a participant (within the meaning of the National Disability Insurance Scheme Act 2013) for whom a participant's plan is in effect under section 37 of that Act; and

(b)  is a supply of one or more of the reasonable and necessary supports specified in the statement included, under subsection 33(2) of that Act, in the participant's plan; and

(c)   is made under a written agreement, between the supplier and the participant or another person, that:

                                    (i)        identifies the participant; and

                                   (ii)        states that the supply is a supply of one or more of the reasonable and necessary supports specified in the statement included, under subsection 33(2) of that Act, in the participant's plan; and

(d)  is of a kind that the *Disability Services Minister has determined in writing.

* denotes a defined term in section 195-1 of the GST Act.

NDIS plan in effect

To satisfy the first limb under paragraph 38-38(a) of the GST Act, the participant's NDIS plan must be in effect under section 37 of the National Disability Insurance Scheme Act 2013 (NDIS Act), which means it must be approved by the National Disability Insurance Agency (NDIA). The plan ceases to be effective when it is replaced by another plan, or when the NDIS participant ceases to be a participant in the NDIS.

Provided You are satisfied that there is a NDIS plan in effect. The first limb under paragraph 38-38(a) of the GST Act is satisfied.

Reasonable and necessary support

To satisfy the second limb under paragraph 38-38(b) of the GST Act, we must determine whether the supply being made by You is one or more of the reasonable and necessary supports specified in the NDIS participant's plan.

Provided that You are satisfied that the NDIS participant's plan specifies or allows for the support of meal preparation and delivery services as a reasonable and necessary support, the second limb under paragraph 38-38(b) of the GST Act will be satisfied.

Made under a written agreement

There must be a written agreement between You, the supplier, and the NDIS participant (or another person). The written agreement must:

•         identify the NDIS participant, and

•         state that the supply is a supply of one or more of the reasonable and necessary supports specified in the statement included, under subsection 33(2) of the NDIS Act, in the participant's NDIS plan.

There are written agreements in place between Yourself and the NDIS participant before the supply is made identifying the NDIS participant and stating that the supply is a supply of one or more reasonable and necessary supports specified in the statement included, under subsection 33(2) of NDIS Act, in the participant's plan.

Therefore, the third limb under paragraph 38-38(c) of the GST Act is satisfied.

A supply covered by the Disability Services Minister's Determination

In relation to the fourth limb under paragraph 38-38(d) of the GST Act, it needs to be determined whether the supply being made is a supply of a kind covered by one of the tables in the A New Tax System (Goods and Services Tax) (GST free Supply - National Disability Insurance Scheme Supports) Determination 2021 (NDIS Determination).

Section 6 of the NDIS Determination lists the kind of supplies covered by the NDIS Determination. Item 3 in the table under subsection 6(1) of the NDIS Determination (Item 3) includes 'household tasks'as a supply for the purposes of paragraph 38-38(d) of the GST Act.

The explanatory statement to the A New Tax System (Goods and Services Tax) (GST free Supply - National Disability Insurance Scheme Supports) Determination 2021 (Explanatory Statement) provides examples of supplies covered by the determination. The Explanatory Statement provides:

Table 1: The Explanatory Statement provides:

As can be seen from the example in the Explanatory Statement above, the supply and delivery of meals to an NDIS participant who is unable to prepare the meals for themselves is included under Item 3 of the NDIS Determination.

Therefore, Your supply of the meal delivery and preparation service satisfies the fourth limb under paragraph 38-38(d) of the GST Act.

Conclusion

This means You are making a GST-free supply of meal preparation and delivery services to NDIS participantswho are unable to prepare meals for themselves under section 38-38 of the GST Act.