Issue
Is the entity, a health professional, making a GST-free supply under subsection 38-7(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it provides a health service to a patient for which a medicare benefit is payable?
Decision
Yes, the entity is making a GST-free supply under subsection 38-7(1) of the GST Act when it provides a medical service to a patient for which a medicare benefit is payable.
Facts
The entity is a health professional. The entity provides a health service to a patient for which a medicare benefit is payable under Part 2 of the Health Insurance Act 1973 .
The entity is registered for goods and services tax (GST).
Reasons for Decision
Under subsection 38-7(1) of the GST Act, the supply of a medical service is GST-free.
A medical service is defined under section 195-1 of the GST Act to include a service for which a medicare benefit is payable under Part 2 of the Health Insurance Act.
In this case, a medicare benefit is payable under Part 2 of the Health Insurance Act for the service provided by the entity. Therefore, the entity is making a GST-free supply under subsection 38-7(1) of the GST Act.