Issue
Is the entity, an ambulance service, making a GST-free supply under subsection 38-10(5) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it supplies a service of monitoring a 'medical alert' device to a person whose medical practitioner considers it necessary that a medical alert device be installed in their home as part of their ongoing treatment?
Decision
Yes, the entity is making a GST-free supply under subsection 38-10(5) of the GST Act when it supplies a service of monitoring a 'medical alert' device to a person whose medical practitioner considers it necessary that a medical alert device be installed in their home as part of their ongoing treatment.
Facts
The entity is an ambulance service. The entity supplies a medical alert device monitoring service to an individual.
The individual's medical practitioner considers it necessary that the 'medical alert' device be installed within the individual's home as part of their ongoing treatment.
The entity is registered for goods and services tax (GST).
Reasons for Decision
Subsection 38-10(5) of the GST Act provides that a supply is GST-free if it is provided by an ambulance service in the course of treatment of the recipient of the supply.
Accordingly, the monitoring of a medical alert device is GST-free where it is supplied: • by an ambulance service; and • in the course of treatment of the recipient of the supply.
As the monitoring service is supplied by an ambulance service, the first element of subsection 38-10(5) of the GST Act is met.
Subsection 38-10(5) of GST Act also requires that the service be supplied 'in the course of the treatment of the recipient of the supply'.
Where a patient is receiving ongoing medical treatment and as part of that ongoing treatment, the patient's medical practitioner considers it necessary for the patient to be monitored by means of a medical alert device, the service of monitoring the medical alert device is considered to be supplied 'in the course of the treatment of the recipient of the supply'.
The individual's medical practitioner considers it necessary that the 'medical alert' device be installed within the individual's home as part of their ongoing treatment. Therefore, the second element of 38-10(5) of the GST Act is met.
Accordingly, the entity is making a GST-free supply under subsection 38-10(5) of the GST Act when it supplies a service of monitoring a 'medical alert' device to a person whose medical practitioner considers it necessary that a medical alert device be installed in their home. [Note 1: Where a patient is not receiving ongoing medical treatment and has a medical alert device installed in their home for other reasons e.g., for peace of mind, the service of monitoring that medical alert device is not considered to be supplied 'in the course of the treatment'. Note 2: Services of advice, treatment and transport provided by the ambulance service as the result of activation of a medical alert are considered to be supplied 'in the course of the treatment' whether or not the device was installed as part of ongoing treatment or for other reasons.]