1 Is the supply of your services to National Disability Insurance Scheme (NDIS) participants GST-free under section 38-38 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?
1 Yes, the supply of your services to NDIS participants is GST-free under section 38-38 of the GST Act. Question 2 Are your supplies of non-government funded services to an aged person GST-free under subsection 38-30(3) of the GST Act? Answer 2 Yes, your non-government funded services provided to an aged person of personal or physical assistance with bathing, continence, eating, dressing, moving, communicating etc that are of a kind covered by the daily living activities assistance specified in item 2.1 in Part 2 of Schedule 1 to the Quality of Care Principles (QCP) are GST-free under subsection 38-30(3) of the GST Act. This would include services where the dominant part of the supply are services that are covered by Item 2.1 of the QCP.
No, your non-government funded services provided to an aged person of housework such as washing and ironing and washing dishes, packing and unpacking groceries, preparing meals, driving/transporting the person to and from appointments and social activities that don't involve assistance with the daily living activities listed in Item 2.1 of the QCP are not GST-free under subsection 38-30(3) of the GST Act. These services are taxable supplies on which GST is payable. This would include services where the dominant part of the supply are services that are not covered by Item 2.1 of the QCP.
You are required to be registered for goods and services tax (GST). You carry on an enterprise which involves providing support services to NDIS participants and to an aged person. The NDIS participants have a NDIS plan in effect and you supply services that are reasonable and necessary supports specified in the NDIS participant's plan. You are an independent support worker and not registered as a NDIS registered provider. You have a written agreement with each NDIS participant. You have a written agreement with the aged person in relation to the services you are to provide. The aged person has been assessed and approved for a Home Care Package (HCP). You are not a government approved HCP provider. You do not receive funding from the Commonwealth, a State, a Territory, or a local government in connection with the supply of services to an aged person either in the form of a subsidy or other funding.
A New Tax System (Goods and Services Tax) Act 1999 section 9-5 A New Tax System (Goods and Services Tax) Act 1999 section 38-38 A New Tax System (Goods and Services Tax) Act 1999 subsection 38-30(3) A New Tax System (Goods and Services Tax) Act 1999 subsection 177-10(5 )
Question 1 Section 38-38 of the GST Act provides that certain disability supports provided to a NDIS participant is GST-free if the supply: (a) is a supply to a participant (within the meaning of the National Disability Insurance Scheme Act 2013 ) for whom a participant's plan is in effect under section 37 of that Act; and (b) is a supply of one or more of the reasonable and necessary supports specified in the statement included, under subsection 33(2) of that Act, in the participant's plan; and (c) is made under a written agreement, between the supplier and the participant or another person, that: (i) identifies the participant; and (ii) states that the supply is a supply of one or more of the reasonable and necessary supports specified in the statement included, under subsection 33(2) of that Act, in the participant's plan; and (d) is of a kind that the Disability Services Minister has determined in writing. Your services are GST-free if you satisfy all of the requirements under section 38-38 of the GST Act. NDIS plan is in effect
To satisfy paragraph 38-38(a) of the GST Act, the participant's NDIS plan must be in effect under section 37 of the National Disability Insurance Scheme Act 2013 (NDIS Act) and must be approved by the National Disability Insurance Agency (NDIA). A plan ceases to be effective when it is replaced by another plan, or when the NDIS participant ceases to be a participant of the NDIS. You have taken steps to confirm the NDIS participant has a NDIS plan in effect and that you provide your services to the NDIS participant in line with the NDIS plan. Therefore, paragraph 38-38(a) of the GST Act is satisfied. Reasonable and necessary supports To satisfy paragraph 38-38(b) of the GST Act, your supply must consist of one or more reasonable and necessary supports, as outlined in the participant's NDIS plan. Based on the information provided, your services are reasonable and necessary support, as specified in the NDIS participant's plan. Therefore, paragraph 38-38(b) of the GST Act is satisfied. Made under a written agreement To satisfy paragraph 38-38(c) of the GST Act, a written agreement must be made between you and the NDIS participant (or another person). The written agreement must:
• identify the NDIS participant, and • state that the supply is a supply of one or more of the reasonable and necessary supports specified in the statement included, under subsection 33(2) of the NDIS Act, in the participant's NDIS plan. The written agreement can be between you and a person other than the NDIS participant. Other people can include those who manage the plan and funding for the NDIS participant. This could include the NDIA, a plan management provider registered with NDIA, or a guardian or relative of the NDIS participant. You have a written agreement between you and the NDIS participant that includes: • Identifies the participant, and • states that your supply is a supply of one or more a reasonable and necessary supports specified in the statement included in the participant's plan. Therefore, paragraph 38-38(c) of the GST Act is satisfied. A supply of a kind determined by the Disability Services Minister With regards to paragraph 38-38(d) of the GST Act, the A New Tax System (Goods and Services Tax) (GST - free Supply-National Disability Insurance Scheme Supports) Determination 2021
(NDIS Determination) is made under subsection 177-10(5) of the GST Act by the Disability Services Minister. The NDIS Determination applies to supplies made on or after 1 July 2021 and contains the following two tables under: • subsection 6(1) of the NDIS Determination (Table 1) specifying supplies of supports that are covered, and • subsection 6(2) of the NDIS Determination (Table 2) specifying supplies that are covered if they are also covered by another determination. A supply specified in Table 1 of the NDIS Determination satisfies the requirement under paragraph 38-38(d) of the GST Act. A supply that is not specified in Table 1 of the NDIS Determination, can still satisfy the requirement under paragraph 38-38(d) of the GST Act if the supply is of a kind covered by Table 2 and the supply is also specified in any of one of the following determinations: • Schedule 1 to the GST-free Supply (Care) Determination 2017 (Care Determination), • Section 6 of the A New Tax System (Goods and Services Tax) (GST-free Supply - Residential Care - Government Funded Supplier) Determination 2015
(Residential Care (Government Funded) Determination), or • Sections 6 or 7 of the GST-free Supply (Health Services) Determination 2017 (Health Services Determination). Table 1 Table 1 of the NDIS Determination specifies the following: Table 1: Specifying the kind of supplies that satisfy the requirement under paragraph 38-38(d) of the GST Act. Item Kind of supply 1 Specialist disability accommodation (within the meaning of the National Disability Insurance Scheme rules) and accommodation/tenancy assistance 2 Assistance in coordinating or managing life stages, transitions and supports, including daily tasks in a group or shared living arrangement 3 Household tasks 4 Assistance with and training in travel/transport arrangements, excluding taxi fares 5 Interpreting and translation 6 Assistance to access and maintain education and employment 7 Assistive equipment for recreation 8 Early intervention supports for early childhood 9 Management of funding for supports in a participant's plan Household tasks are included at Item 3 of Table 1 of the NDIS Determination. This would include tasks such as washing clothes and doing dishes.
As none of your other support services are of a kind covered by any other item under Table 1 of the NDIS Determination consideration is given as to whether those other supplies are of a kind covered by Table 2 of the NDIS Determination. Table 2 Table 2 of the NDIS Determination specified the following: Table 2: Supplies covered by Table 2 of the NDIS Determination. Item Kind of supply 1 Assistance with daily personal activities 2 Specialised assessment and development of daily living and life skills, including community participation 3 Assistive equipment for general tasks and leisure, including assistive technology specialist assessment, set up and training 4 Behavioural support and therapeutic supports 5 Home modifications The Explanatory Statement to the NDIS Determination 2021 (Explanatory Statement) provides the following examples of supplies covered by item 1 and item 2 of Table 2 of the NDIS Determination: Table 3: Examples of supplies covered by item 1 and item 2 of Table 2 of the NDIS Determination. Classes of support Example Description 1 Assistance with daily personal activities Active overnight assistance with self-care Assisting with, and/or supervising,
personal tasks of daily life to develop skills of the participant to live as autonomously as possible. ... ... ... 1. Assistance with daily personal activities Assistance with self-care activities (daytime on weekdays, weekday evenings, on Saturday, Sunday or Public Holidays, or sleepover inactive) Assisting with, and/or supervising, personal tasks of daily life to develop skills of the participant to live as autonomously as possible. 1 Assistance with daily personal activities Assistance with household tasks Assisting the participant to live as autonomously as possible by assisting them to actively participate in, and/or develop skills to maintain their home environment. This includes assisting the participant to manage their budget, with personal communication and basic household and yard maintenance activities . ... ... ... 2. Specialised assessment and development of daily living and life skills, including community participation Development of skills for community, social and recreational participation Training or skills development to enable a participant to independently engage in community, social and recreational activities . ... ... ...
2. Specialised assessment and development of daily living and life skills, including community participation Individual social skills development Social skills development with an individual. ... ... ... Based on the information above, the supply of your services is covered by item 1 'assistance with daily personal activities and or item 2 'specialised assessment and development of daily living and life skills, including community participation' under Table 2 of the NDIS Determination. As noted above if a service is of a kind covered by an item under Table 2 of the NDIS Determination it must also be covered by one of the three other determinations under paragraph 6(2)(b) of the NDIS Determination to satisfy paragraph 38-38(d) of the GST Act. Relevant to your circumstances are the services specified in Schedule 1 of the Care Determination set out below. The Care Determination Schedule 1 of the Care Determination provides: Table 4: Listed services under Schedule 1 of the Care Determination. Item Service 1 Home help 2 Personal care 3 Home maintenance 4 Home modification 5 Provision of food 6 Provision and delivery of meals at home or at a day care or similar centre 7 Respite care 8
Transport to and from day care or similar centres and for shopping trips, social outings and for health-related purposes 9 Community paramedical services 10 Community nursing 11 Assessment of the person's care needs 12 Referral to other community care services 13 Training in the use of aids and appliances and in how to get the most out of the other services mentioned in this Schedule 14 Individual care planning or case management 15 Provision of basic equipment for social support 16 Day care 17 Linen services 18 Counselling 19 Community advocacy for a purpose mentioned in section 81-1 of the Aged Care Act 1997 20 Medication management 21 Provision and monitoring of personal alert systems 22 Provision of therapeutic supplies and services under the program known as the Psychogeriatric Unit Program administered by the Commonwealth 23 Continence management Based on the information above, your services you provide are covered by the following items under the table in Schedule 1 to the Care Determination: • Item 1 - Home Help • Item 2 - Personal Care
• Item 8 - Transport to and from day care or similar centres and for shopping trips, social outings and for health-related purposes Therefore, as your services are either covered by an item in table 1 or covered by item 1 and or item 2 under Table 2 of the NDIS Determination and items in Schedule 1 to the Care Determination, paragraph 38-38(d) of the GST Act is satisfied. Conclusion The supply of your services to the NDIS participant is GST-free under section 38-38 of the GST Act. No GST is payable on your supply. Question 2 Home care services (non-government funded) As you are not an approved provider and do not receive government funding (in the form of a subsidy or other funding) in relation to the support services you provide to the aged person, subsection 38-30(3) of the GST Act, is the only relevant provision to consider. Subsection 38-30(3) of the GST Act provides that the supply of home care is GST-free if the supply is of services that: • are provided to one or more aged or disabled people and • are of a kind covered by Item 2.1 of the QCP.
'Home care' is defined in section 195-1 of the GST Act to have the meaning given by section 45-3 of the Aged Care Act 1 997 (AC Act) which defines 'home care' as: • Home 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... As the services you provide to an aged person involve personal care services and other personal assistance to that aged person who is not being provided with residential care facility, those care services meet the definition of 'home care'. Item 2.1 of the QCP specifies the assistance with daily living activities that must be provided for all care recipients who need them: Table 5: Item 2.1 of the QCP. Item Column 1 Care or service Column 2 Content 2.1 Daily living activities assistance Personal assistance, including individual attention, individual supervision, and physical assistance, with the following: (a) bathing, showering, personal hygiene and grooming; (b) maintaining continence or managing incontinence, and using aids and appliances designed to assist continence management;
(c) eating and eating aids, and using eating utensils and eating aids (including actual feeding if necessary); (d) dressing, undressing, and using dressing aids; (e) moving, walking, wheelchair use, and using devices and appliances designed to aid mobility, including the fitting of artificial limbs and other personal mobility aids; (f) communication, including to address difficulties arising from impaired hearing, sight or speech, or lack of common language (including fitting sensory communication aids), and checking hearing aid batteries and cleaning spectacles. Excludes hairdressing. However, there are some home care services that are not covered by Item 2.1 of the QCP. Examples of services that are not GST-free non-government funded home care include: • hairdressing • housework and gardening • preparing meals and grocery shopping for individuals • aids, appliances and monitoring medication; however, they may be GST-free health supplies under a different section of the GST Act
• rehabilitation and health care services, however, these may be GST-free health supplies under a different section of the GST Act • help with writing cheques, emails and letters • advocacy services • accommodation • driving individuals to and from appointments and social activities • social and community activities, such as providing companionship, craft and reading activities to individuals. If you supply social and community activities, it is not GST-free non-government funded home care. However, a supply of GST-free non-government funded home care at a social or community activity is GST-free. The following example is provided to illustrate the difference between a service which involves assisting a person and a service of transport and providing social support: Example - Assisting a person versus engaging in a social activity Personal Care Pty Ltd provides care services for residents at Happiness Nursing Home. They provide social outings to lawn bowls and care support for the bowlers.
Their employee, Jan, helps a resident play lawn bowls by helping her to walk, standing beside her and steadying her while she rolls the bowls. This supply is GST-free non-government funded home care as Jan is providing mobility assistance to the care recipient. Their employee, Errol, drives the residents to lawn bowls and plays with the residents, ensuring everyone is included and has an enjoyable day. This supply is not GST-free non-government funded home care as Errol is providing transport and social support which is not in the list of GST-free non-government funded home care services. Care services provided to an aged person With regards to the first requirement of subsection 38-30(3) of the GST Act you have entered into a written agreement with an aged person to provide services to that aged person in their own home and in the community. The person to whom you provide your services is aged therefore satisfying the first requirement of subsection 38-30(3) of the GST Act is satisfied. Services of a kind covered by Item 2.1 of the QCP
With regards to the second requirement of subsection 38-30(3) of the GST Act, services you provide include assistance with personal care as well as social support, meal preparation and household tasks and cleaning. Your non-government funded services provided by you to an aged person involve personal assistance or supervision with those daily living activities of a kind covered by Item 2.1 of the QCP such as bathing, personal hygiene, maintaining continence, eating, dressing, moving, communicating and are GST-free satisfying the requirements of subsection 38-30(3) of the GST Act.
Time spent not actively caring for the person, but simply being there to provide services of a kind covered by Item 2.1 (daily living activities assistance) of the QCP as the person requires, are also GST-free (i.e. being in the home not actively assisting with bathing but being there to provide assistance with bathing as required or being in the community to assist with mobility as the aged person requires) satisfying both requirements of subsection 38-30(3) of the GST Act. Similarly, where the aged person requires an attendant carer to be available to provide these assistance services 24-hours a day, the provision of 'sleep over' services are GST-free. Services not of a kind covered by Item 2.1 of the QCP
Your non-government funded services such as housework, gardening, preparing meals and grocery shopping for the aged person, driving the aged person to and from appointments (doctor's) or social activities that do not involve personal assistance with those daily living activities specified in Item 2.1 of the QCP are not GST-free under subsection 38-30(3) of the GST Act. These services are taxable supplies to the extent they are not of a kind covered by Item 2.1 of the QCP under subsection 38-38(3) of the GST Act or any other GST-free provision and otherwise satisfy the requirements of a taxable supply. Conclusion Your non-government funded services provided to an aged person of personal or physical assistance with bathing, continence, eating, dressing, moving, communicating etc that are of a kind covered by the daily living activities assistance specified in item 2.1 of the QCP are GST-free under subsection 38-30(3) of the GST Act. This would include services where the dominant part of the supply are services that are covered by Item 2.1 of the QCP.
Your non-government funded services provided to an aged person involving housework such as washing and ironing, washing dishes, packing and unpacking groceries, preparing meals, driving the person to and from appointments and social activities that don't involve assistance with the daily living activities specified in Item 2.1 of the QCP are not GST-free under subsection 38-30(3) of the GST Act. These services are taxable supplies where they otherwise satisfy the requirements of a taxable supply.