GST and antenatal exercise classes

Is the entity, a registered physiotherapist, 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 an antenatal exercise class?

Yes, the entity is making a GST-free supply under subsection 38-10(1) of the GST Act when it supplies an antenatal exercise class, provided that the class is generally accepted in the physiotherapy profession as being necessary for the appropriate treatment of the recipient of the supply.

The entity is a physiotherapist that is registered under the relevant State or Territory Act that regulates physiotherapy services. The entity is supplying an antenatal exercise class to a patient.

The entity conducts an initial interview to determine whether the classes are appropriate for the particular patient.

The antenatal exercise classes assist the patient to alleviate pain, treat other pregnancy-related problems of the patient, and prepare the patient for childbirth by strengthening particular muscle groups (especially those in the pelvic region).

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 (the table) or of a kind specified in the A New Tax System (Goods and Services Tax) Regulations 1999 (GST Regulations); • the entity is a recognised professional in relation to the supply of services of that kind; 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.

'Physiotherapy' is listed at item 17 in the table (Item 17). The entity is a registered physiotherapist that is providing physiotherapy services to a patient in the form of an antenatal exercise class. Therefore, the first requirement in subsection 38-10(1) of the GST Act is satisfied.

The second requirement is that the person providing the service must be a recognised professional in relation to the supply of physiotherapy services. Section 195-1 of the GST Act provides that a person is a recognised professional in relation to a supply of a service of a kind specified in the table if: '(a) the service is supplied in a State or Territory in which the person has a permission or approval, or is registered, under a State law or a Territory law prohibiting the supply of services of that kind without such permission, approval or registration; or ...'

The entity is a physiotherapist that is registered under the relevant State or Territory Act that regulates physiotherapy services. Therefore, the entity is a 'recognised professional' as per the definition in section 195-1 of the GST Act. As such, the second requirement in subsection 38-10(1) of the GST Act is satisfied.

The third requirement is that the supply must be generally accepted in the physiotherapy profession as being necessary for the appropriate treatment of the recipient of the supply.

'Appropriate treatment' is established where an entity 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 to the extent that their training allows. Appropriate treatment includes the principles of preventative medicine.

Classes for antenatal women are considered to be 'appropriate treatment' where they are designed to prepare a woman for childbirth. To satisfy this requirement, the classes must be more than just aerobic type exercise classes. The classes must also focus on problems associated with being pregnant, and must help prepare the muscles required during childbirth.

The entity supplies a physiotherapy service in the form of an antenatal exercise class. The entity conducts a preliminary interview with the patient to assess the patient's needs and to determine whether the class is suitable for that individual. Furthermore, the entity's class assists the patient to alleviate pain, treats other pregnancy related problems, and prepares the patient for childbirth by strengthening particular muscle groups (especially those in the pelvic region). The class therefore provides more than an aerobic workout to the patient. As such, the entity is supplying 'appropriate treatment' to the patient. Therefore, provided that this appropriate treatment is generally accepted in the physiotherapy profession as being necessary for the recipient of the supply, the third requirement in subsection 38-10(1) of the GST Act is satisfied.

The first 2 requirements in subsection 38-10(1) of the GST Act are satisfied, and the antenatal exercise class is considered to be 'appropriate treatment' as per the third requirement. Where the supply is generally accepted in the physiotherapy profession as being necessary for the appropriate treatment of the recipient of the supply, the third requirement in subsection 38-10(1) of the GST Act is also satisfied.

Accordingly, the entity is making a GST-free supply under subsection 38-10(1) of the GST Act when it supplies an antenatal exercise class, provided that the class is generally accepted in the physiotherapy profession as being necessary for the appropriate treatment of the recipient of the supply.