Issue
Is the entity, a speech pathologist, 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 provides training to the parent of a child for the purpose of treating that child's language difficulties?
Decision
Yes, the entity is making a GST-free supply under subsection 38-10(1) of GST Act, when it provides training to the parent of a child for the purpose of treating that child's language difficulties.
Facts
The entity is a speech pathologist that supplies speech therapy to children. The entity also conducts a parents' training group to train parents in therapy strategies that are relevant to their children.
The entity has assessed a child and recommended that, as well as the child attending speech therapy, the parent attends a parents' training group in order to address the child's particular language difficulty.
Where parent group therapy sessions are required to assist with the child's treatment, these sessions are accepted within the speech pathology profession as an appropriate method of treating a child with speech difficulties.
The entity is a member of the relevant national professional association and is a recognised professional as defined in section 195-1 of the GST Act. The entity is registered for goods and services tax (GST).
Reasons for Decision
Under subsection 38-10(1) of the GST Act, an entity makes a GST-free supply of other health services if: • the entity 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 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.
Speech pathology services are listed at item 19 in the table in subsection 38-10(1) of the GST Act and the entity is a recognised professional in relation to the supply of speech pathology. As such, the first two requirements under subsection 38-10(1) of the GST Act are satisfied.
The third requirement is that the treatment must be generally accepted in the relevant health profession as being necessary for the appropriate treatment of the recipient.
'Appropriate treatment' will be established where a 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 professional area of training allows. It will include subsequent supplies for the determined process.
Appropriate treatment includes the principles of preventative medicine. Such treatment must be generally accepted in the profession associated with supplying services of that kind, as being necessary.
The entity has assessed a child and recommended that, as well as the child attending speech therapy, the parent attends a parents' training group in order to address the child's particular language difficulty. The purpose of these groups is to train parents to implement therapy strategies, relevant to their child, at home. Therefore, even though the training is provided to the parent, the recipient of the supply of speech therapy is the child.
Where parent group therapy sessions are required to assist with the child's treatment, these sessions are accepted within the speech pathology profession as an appropriate method of treating a child with speech difficulties. Therefore, the treatment provided in the form of training to the parent, would generally be accepted in the speech pathology profession as being necessary for the appropriate treatment of the child.
The supply of the speech therapy satisfies all of the requirements under subsection 38-10(1) of the GST Act. Therefore, the entity is making a GST-free supply under subsection 38-10(1) of the GST Act when it provides training to the parent of a child for the purpose of treating that child's language difficulties.