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Edited version of private advice
Authorisation Number: 1052225040499
Date of advice: 22 February 2024
Ruling
Subject: GST- free health services
Unless otherwise specified, all references are to the A New Tax System (Goods and Services Tax) Act 1999 (GST Act).
Question
Do you make GST-free supplies under Division 38-B in relation your supplies of psychological assessment services?
Answer
Yes, when all the requirements of either section 38-7 or 38-10 are met, your supply is GST-free under that section.
This ruling applies for the following period:
22 February 2024 to 20 February 2028
Relevant facts and circumstances
You are registered for GST.
You provide psychology services including psychological assessment services to individual patients, some of whom are NDIS participants. Third parties may be involved in your arrangements, excluding those with NDIS participants.
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 subsection 9-15(2)
A New Tax System (Goods and Services Tax) Act 1999 section 38-7
A New Tax System (Goods and Services Tax) Act 1999 section 38-10
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
Income Tax Assessment Act 1997 section 995-1
Reasons for decision
Individuals
Medicare benefit payable
When a medicare benefit is payable for your supply of a psychological assessment service, all of your supply of that psychological assessment service will be a GST-free supply under subsection 38-7(1).
No medicare benefit payable
When you supply a psychological assessment service to an individual, and it is accepted in the psychology profession as necessary and appropriate treatment of that individual, all of your supply of the psychological assessment service is a GST-free supply of psychology under subsection 38-10(1).
NDIS participants
Your psychological assessment services are not GST-free under section 38-38 because your supplies of psychological assessment services to the NDIS participants do not satisfy subsection 38-38(c).
However, when you supply your psychological assessment service to a NDIS participant and all the requirements of either section 38-7 or 38-10 are met, your supply is GST-free under that section.
Third Parties
When you supply your psychological assessment service to a patient and all the requirements of either section 38-7 or 38-10 are met, your supply of the psychological assessment service to that patient is GST-free under that section.
When the third party is not the recipient of the supply, and your supply of a psychological assessment service to an individual patient meets all the requirements of either section 38-7 or 38-10, your psychological assessment service to that individual is a GST-free supply under that section, regardless of the payment being made by a third party payer and not by the recipient of the supply.