GST and Orthoptics

Is the entity, an orthoptist, 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 orthoptic 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 orthoptic services to a patient. The entity is making a taxable supply under section 9-5 of the GST Act.

The entity is an orthoptist. The entity supplies orthoptic services to a patient. The entity is not a practitioner of any other health service. The entity does not supply the orthoptic services as a technique or a component of any other health services.

The entity is registered for goods and services tax (GST).

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); • 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).

Orthoptics is not specified in the table in subsection 38-10(1) of the GST Act or the GST Regulations. Therefore, a supply of orthoptic 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 specified in the table in subsection 38-10(1) of the GST Act and orthoptics is a standard technique or a component of the supply of that specified service.

The entity in this case is an orthoptist supplying orthoptic services only. The entity is not supplying one of the services specified in the table. 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 orthoptic services to a patient.