Issue
Is the entity, a care organisation, making a GST-free supply under subsection 38-30(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it supplies care services, in respect of which the entity receives a community care subsidy, to an aged person in their own home and charges the aged person a fee for those services?
Decision
Yes, the entity is making a GST-free supply under subsection 38-30(1) of the GST Act when it supplies care services, in respect of which the entity receives a community care subsidy, to an aged person in their own home and charges the aged person a fee for those services.
Facts
The entity is a care organisation. The entity supplies personal care services and other personal assistance to an aged person in their own home. The entity does not provide the aged person with residential care.
The entity receives a community care subsidy under Part 3-2 of the Aged Care Act 1997 . In addition to the subsidy, the entity charges the aged person a fee for the supply of the care services.
The entity is registered for GST.
Reasons for Decision
Under subsection 38-30(1) of the GST Act, a supply of community care is GST-free if a community care subsidy is payable under Part 3-2 of the Aged Care Act to the supplier for the care.
Section 195-1 of the GST Act defines 'community care' as having the meaning given by section 45-3 of the Aged Care Act. Subsection 45-3(1) of the Aged Care Act provides that community care is care consisting of a package of personal care services and other personal assistance provided to a person who is not being provided with residential care.
The entity is providing care services to an aged person in their own home. The entity does not provide the aged person with residential care. Accordingly, the entity's care services satisfy the meaning of community care in section 45-3 of the Aged Care Act.
The entity receives a community care subsidy under Part 3-2 of the Aged Care Act for the care. As such, subsection 38-30(1) of the GST Act is satisfied.
Therefore, the entity is making a GST-free supply under subsection 38-30(1) of the GST Act when it supplies care services, in respect of which the entity receives a community care subsidy, to an aged person in their own home and charges the aged person a fee for those services.