GST and dietary services supplied to an individual

Is the entity, a dietitian, 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 dietary services to an individual?

Yes, the entity is making a GST-free supply under subsection 38-10(1) of the GST Act when it supplies dietary services to an individual, and the dietary services are considered by the dietary profession to be necessary for the appropriate treatment of that particular individual.

The entity is a dietitian. The entity supplies dietary services to an individual. The individual pays for the dietary services supplied by the entity.

The dietitian is a member of the Dietitians Association of Australia.

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

Subsection 38-10(1) of the GST Act provides that a supply of 'Other health services' is GST-free if: (a) it is 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); (b) the supplier is a recognised professional in relation to the supply of services of that kind; and (c) 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.

'Dietary' is a service specified at item 7 in the table in subsection 38-10(1) of the GST Act. Therefore, the supply of dietary services satisfies the requirement in paragraph 38-10(1)(a) of the GST Act.

Under paragraph 38-10(1)(b) of the GST Act, the service must be supplied by a recognised professional in relation to the supply of dietary services.

To be a 'recognised professional' as defined in section 195-1 of the GST Act in relation to a service specified in the table in subsection 38-10(1) of the GST Act, the person performing the service must have permission, approval or be registered under Australian State or Territory law, in the State or Territory in which the service is supplied, to provide that service. Where no such law exists, the person must be a member of a professional association that has uniform national registration requirements in relation to supplies of services of that kind.

There is no Australian State or Territory law that requires a dietitian to have permission, approval or to be registered to supply dietary services. Therefore, to be a recognised professional in the supply of dietary services, the dietitian must be a member of a professional association that has uniform national registration requirements in relation to supplies of services of that kind. For the purposes of subsection 38-10(1) of the GST Act, the recognised national professional association in relation to the supply of dietary services is the Dietitians Association of Australia. This association has uniform national registration requirements in relation to supplies of dietary services.

In this case, the dietitian is a member of the Dietitians Association of Australia. As such, the dietitian is a recognised professional in relation to dietary as per paragraph 38-10(1)(b) of the GST Act.

For the purposes of paragraph 38-10(1)(c) of the GST Act, the service must be generally accepted in the profession associated with supplying services of that kind, as being necessary for the appropriate treatment of the recipient of the supply. In this situation, for a supply to be 'generally accepted', the particular service supplied and the circumstances in which it is provided, must be generally accepted by the dietary profession. Therefore, it is the dietary profession that ultimately determines which services are generally accepted as being necessary for the appropriate treatment of the recipient of the supply.

It is considered that 'appropriate treatment' is established where the recognised professional assesses the recipient's state of health and determines a process to pursue, in an attempt to preserve, restore or improve the physical or psychological wellbeing of that recipient insofar as that recognised professional's particular area of training allows. It includes subsequent supplies for the determined process and incorporates the principles of preventative medicine.

'Recipient' in relation to a supply, is defined in section 195-1 of the GST Act to mean 'the entity to which the supply was made'. In this case, the entity is engaged by an individual to provide dietary services to that individual and is paid by that individual. Therefore, the recipient of the supply of these services is the individual.

Therefore, where the entity, supplying a service of dietary to the individual, assesses that individual's state of health and determines a process to pursue, in an attempt to preserve, restore or improve the physical or psychological wellbeing of that individual, and the dietary profession generally accepts this treatment as appropriate for that individual, the requirements in paragraph 38-10(1)(c) of the GST Act will be satisfied.

The entity satisfies the requirements in paragraphs 38-10(1)(a) and 38-10(1)(b) of the GST Act. Therefore, the entity is making a GST-free supply under subsection 38-10(1) of the GST Act when it supplies dietary services to an individual, and the dietary services are considered by the dietary profession to be necessary for the appropriate treatment of that particular individual.