GST and counselling services

Is the entity, a counsellor, 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 counselling services?

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

The entity is a counsellor that provides services of counselling, workshop presentations and the coordination of therapy programs. The entity is a member of the Australian Counselling Association.

The entity is not supplying one of the services listed in the table in subsection 38-10(1) of the GST Act or in the A New Tax System (Goods and Services Tax) Regulations 1999 (GST Regulations), for example, psychology or social work.

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 GST Regulations (paragraph 38-10(1)(a) of the GST Act); • 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).

Counselling services are not listed in the table in subsection 38-10(1) of the GST Act. Therefore, the supply of counselling services, 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 is satisfied where the supplier is supplying one of the services listed in the table in subsection 38-10(1) of the GST Act and counselling services are a standard technique or a component of the supply of that listed service. For example, 'Psychology' or 'Social Work' are services in the table in subsection 38-10(1) of the GST Act for which counselling services may be considered a standard technique or a component of the supply.

The entity is supplying counselling services. The entity is not supplying any of the relevant services listed in the table in subsection 38-10(1) of the GST Act or the GST Regulations. 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 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 counselling services.