Issue
Is the entity, a supplier of personal care services, making a GST-free supply under subsection 38-30(3) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it supplies the personal care services of: • bathing and showering; • personal hygiene and grooming; and • feeding
to aged or disabled people in their own homes?
Decision
Yes, the entity is making a GST-free supply under subsection 38-30(3) of the GST Act when it supplies the personal care services of: • bathing and showering; • personal hygiene and grooming; and • feeding
to aged or disabled people in their own homes.
Facts
The entity is a supplier of personal care services. The entity supplies personal care services to aged or disabled people in their own homes. The entity does not provide residential care. The care services are provided by carers who are neither registered nor enrolled nurses.
The carers assist the aged or disabled people with bathing, showering, personal hygiene, grooming and feeding.
The entity is engaged by the aged or disabled person and does not receive subsidies or funding in relation to the supply of care services.
The entity is registered for goods and services tax (GST).
Reasons for Decision
Under subsection 38-30(3) of the GST Act, a supply of 'community care' is GST-free if the supply is of services: • that are provided to one or more aged or disabled people (paragraph 38-30(3)(a) of the GST Act); and • that are of a kind covered by item 2.1 (daily living activities assistance) of Part 2 of Schedule 1 to the Quality of Care Principles (paragraph 38-30(3)(b) of the GST Act).
First, it must be determined if the entity's supply is of 'community care'. Section 195-1 of the GST Act defines 'community care' as having the meaning given by section 45-3 of the Aged Care Act 1997 . Subsection 45-3(1) of the Aged Care Act provides that community care is care consisting of a package of personal care services and other personal assistance provided to a person who is not being provided with residential care.
The entity supplies personal care services to aged or disabled people in their own homes and does not provide residential care. Accordingly, the personal care services provided by the entity satisfies the meaning of community care in section 45-3 of the Aged Care Act.
The entity supplies personal care services to aged or disabled people. Therefore, paragraph 38-30(3)(a) of the GST Act is satisfied.
Under paragraph 38-30(3)(b) of the GST Act, the care services provided by the entity must be of a kind that is covered by item 2.1 (daily living activities assistance) of Part 2 of Schedule 1 to the Quality of Care Principles.
Item 2.1 of Part 2 of Schedule 1 to the Quality of Care Principles provides that: 'Personal assistance, including individual attention, individual supervision, and physical assistance with: (a) bathing, showering, personal hygiene and grooming; (b) maintaining continence or managing incontinence, and using aids and appliances designed to assist continence management; (c) eating and eating aids, and using eating utensils and eating aids (including actual feeding if necessary); (d) dressing, undressing, and using dressing aids; (e) moving, walking, wheelchair use, and using devices and appliances designed to aid mobility, including the fitting of artificial limbs and other personal mobility aids; and (f) communication, including to address difficulties arising from impaired hearing, sight or speech, or lack of common language (including fitting sensory communication aids), and checking hearing aid batteries and cleaning spectacles; Excludes hairdressing'.
The carers assist the aged or disabled people with bathing, showering, personal hygiene, grooming and feeding. As these are services that are listed in item 2.1 of Part 2 of Schedule 1 to the Quality of Care Principles, the supply of these services satisfies paragraph 38-30(3)(b) of the GST Act.
Accordingly, the entity is making a GST-free supply under subsection 38-30(3) of the GST Act when it supplies the personal care services of bathing, showering, personal hygiene, grooming and feeding to aged or disabled people in their homes.