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Is the entity, a provider of an alternative health therapy, making a GST-free supply under subsection 38-10(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it supplies breathwork services to a patient?

No, the entity is not making a GST-free supply under subsection 38-10(1) of the GST Act when it supplies breathwork services to a patient. The entity is making a taxable supply under section 9-5 of the GST Act.

The entity is a provider of an alternative health therapy. The entity supplies breathwork services to a patient.

Breathwork is a therapy that utilises a particular breathing pattern to assist in the healing of trauma. Breathwork is used in the treatment of people suffering from depression and anxiety disorders.

The entity is not a medical practitioner, nor is it a practitioner in any of the health services listed in the table in subsection 38-10(1) of the GST Act.

The entity is registered for goods and services tax (GST). The supply satisfies the other positive limbs of section 9-5 of the GST Act.

Under subsection 38-10(1) of the GST Act, an entity makes a GST-free supply of health services if: • it provides a service of a kind specified in the table in subsection 38-10(1) of the GST Act or of a kind specified in the A New Tax System (Goods and Services Tax) Regulations 1999 (GST Regulations) (paragraph 38-10(1)(a) of the GST Act); and • the entity is a recognised professional in relation to the supply of services of that kind (paragraph 38-10(1)(b) of the GST Act); and • 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 (paragraph 38-10(1)(c) of the GST Act).

Breathwork is not listed in the table in subsection 38-10(1) of the GST Act or in the GST Regulations. Therefore, a supply of breathwork, in itself, does not satisfy the requirement in paragraph 38-10(1)(a) of the GST Act.

However, the requirement in paragraph 38-10(1)(a) of the GST Act may be satisfied where the supplier is supplying one of the services listed in the table in subsection 38-10(1) of the GST Act and an unlisted service such as breathwork is considered to be a standard technique or component of the supply of that listed service.

The entity in this particular case is supplying breathwork. The entity is not supplying any of the services listed in the table in subsection 38-10(1) of the GST Act. Therefore, the requirement in paragraph 38-10(1)(a) of the GST Act is not satisfied and the supply is not GST-free under subsection 38-10(1) of the GST Act.

The entity is registered for GST and the supply satisfies the other positive limbs of section 9-5 of the GST Act. Furthermore, the supply is not GST-free under any other provision in Division 38 of the GST Act or input taxed under Division 40 of the GST Act. Therefore, the entity is making a taxable supply under section 9-5 of the GST Act when it supplies breathwork services to a patient.