GST and thermal imaging

Is the entity, an individual, 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 digital infrared thermal imaging 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 digital infrared thermal imaging services to a patient. The entity is making a taxable supply under section 9-5 of the GST Act.

The entity is an individual. The entity supplies digital infrared thermal imaging services to a patient. Digital infrared thermal imaging is a diagnostic tool for early detection of breast cancer and for location of the origin of pain.

The entity is not a medical practitioner, but carries on business independently in a medical centre. A medicare benefit is not payable for the entity's services.

The entity's supply is not GST-free as a medical service under section 38-7 of the GST Act.

The entity is not supplying any of the relevant services 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).

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); and • 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).

Thermal imaging is not specified in the table in subsection 38-10(1) of the GST Act. Therefore, a supply of thermal imaging 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 thermal imaging is a standard technique or a component of the supply of that specified service. For example, 'Nursing' is a service in the table in subsection 38-10(1) of the GST Act for which thermal imaging may be considered to be a component.

The entity is supplying thermal imaging services. The entity is not supplying a nursing service or any other health service specified 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 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 thermal imaging services to a patient.