Are the supplies 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)?
Yes, the supply of your services to NDIS participants are GST-free under section 38-38 of the GST Act.
You are registered for the goods and services tax (GST). You are a support worker. You have not registered as a NDIS registered provider. You provide services to xx NDIS participants in their own home and in the community, assisting them with their individual needs and helping them engage and participate in daily and social activities. The written agreement you have with the participants representative (signed by you and the Participant's representative) states: • A supply of services under this Agreement is a supply of one or more of the reasonable and necessary Services specified in the statement included, under subsection 33(2) of the National Disability Insurance Scheme Act 2013 (NDIS Act), in the Participant's NDIS plan currently in effect under section 37 of the NDIS Act; • The Participant's NDIS Plan is expected to remain in effect during the period the Services are provided; and • The Participant/Participant's Representative will immediately notify the Provider if the Participant's NDIS Plan is replaced by a new Plan or the Participant stops being a participant in the NDIS.
The scope of the services listed in the written agreement include Personal care, assistance with daily living, community access support, transport. Under the written agreement these services will be carried out at the participants house and in the community on a weekly basis. The services you provide differ from one NDIS participant to another depending on their individual needs and requirements. The activities involved in providing your support services to NDIS participants include: Community support: Taking the participants out in the community and support them so they can attend appointments, participate in activities, Drama classes, life skills in the community e.g: catching a bus, crossing roads correctly. Learn how to navigate in the community. Socialising and interacting with people in the community and doing any personal shopping they need to do. Daily living/self-care Services provided at the participants house include: • supervise and assist with household tasks, personal hygiene, • meal preparation and cooking, Guidance in the vegetable garden. You also provide services to the NDIS participants including:
• Meal preparation and cooking. • Craft activities, problem solving, building on communication skills. • Learning time management and organising the participants weekly schedule, grocery and shopping lists. • Working on independence and everyday living routines. The supplies you make are to NDIS participants who have a NDIS plan in effect and where the supplies are one or more of the reasonable and necessary supports specified in the statement included in each of the participants' NDIS plan. You invoice the NDIS participant's plan manager for the support services you provide. You entered in a written agreement with the NDIS Participants representative. You provided invoices you send to the Participant's plan manager for payment.
A New Tax System (Goods and Services Tax) Act 1999 section 38-38
Summary The supply of your services to NDIS participants are GST-free under section 38-38 of the GST Act. Detailed reasoning Section 38-38 of the GST Act provides that certain disability supports provided to NDIS participants are 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. You provide services to xx NDIS participants in their home and in the community, including: Community support:
Taking the participants out in the community and support them so they can attend appointments, participate in activities, Drama classes, life skills in the community e.g.: catching a bus, crossing roads correctly. Learn how to navigate in the community. Socialising and interacting with people in the community and doing any personal shopping they need to do. Daily living/self-care Services provided at the participants house include: • supervise and assist with household tasks, personal hygiene, • meal preparation and cooking, Guidance in the vegetable garden. You also provide services to the NDIS participants including: • Meal preparation and cooking. • Craft activities, problem solving, building on communication skills. • Learning time management and organising the participants weekly schedule, grocery and shopping lists. • Working on independence and everyday living routines. 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 provided copies of the NDIS plans for the participants and you also take steps to confirm the participants have a plan in effect. You provide your services to the NDIS Participants. 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 supply of assistance with daily care and community access are reasonable and necessary supports, 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 provided a copy of a written agreement between you and the NDIS participants (signed by the NDIS Participant's representative). The agreement includes: • the NDIS participant's name, and • a statement that the parties agree that the supply of services under the agreement is the supply of one or more reasonable and necessary supports specified in the statement included, under subsection 33(2) of the NDIS Act, in the participant's plan. Therefore, paragraph 38-38(c) of the GST Act is satisfied. A supply of a kind covered by the Disability Services Minister's Determination
Based on the information provided, you meet the first three requirements under paragraphs 38-38(a) to (c) of the GST Act. However, for the supply of your services to be GST-free, the supply must be of a kind determined in writing by the Disability Services Ministers. 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 for the purposes of paragraph 38-38(d) of the GST Act. The NDIS Determination contains two tables, with the table under: • subsection 6(1) of the NDIS Determination (Table 1) listing supplies of supports that are covered, and • subsection 6(2) of the NDIS Determination (Table 2) listing the supports that are covered if they are also covered by another determination. If the supply is covered by Table 1 in subsection 6(1) of the NDIS Determination, the requirement under paragraph 38-38(d) of the GST Act will be satisfied.
If a supply is not covered by Table 1 in subsection 6(1) of the NDIS Determination, the requirement under paragraph 38-38(d) of the GST Act may still be satisfied if the supply is covered by Table 2 in subsection 6(2) of the NDIS Determination and the supply is also listed 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 In subsection 6(1) of the NDIS Determination lists the following: Table 1: Kind of supply in subsection 6(1) 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 We do not consider that your services are covered by any item under Table 1 in subsection 6(1) of the NDIS Determination. Therefore, we must determine whether your supply is covered by Table 2 in subsection 6(2) of the NDIS Determination. Table 2 In subsection 6(2) of the NDIS Determination lists the following: Table 2: Kind of Supply in subsection 6(2) 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 A New Tax System (Goods and Services Tax) (GST free Supply-National Disability Insurance Scheme Supports) 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 Table 3: Examples of supplies covered in table 1 and table 2 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 sleepovers 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 b 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 description of the services provided, the supply of your other services are of a kind 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' in 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 the kind of support services you provide to NDIS participants are the services specified in Schedule 1 of the Care Determination set out below. GST-free Supply (Care) Determination 2017 (The Care Determination) Schedule 1 of the Care Determination provides: Table 4: Services provided 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, the services you provide are covered by the following items in the table in Schedule 1 to the Care Determination: • Item 1 - Home Help • Item 2 - Personal Care • Item 8 - Transport to and from ... shopping trips, social outings and for health-related purposes Accordingly, the supplies of support services you provide each of the NDIS participants (including household task also covered by item 3 in table 1) are covered by item 1 or item 2 in Table 2 to the NDIS Determination and Schedule 1 to the Care Determination, thereby satisfying the requirements of paragraph 38-38(d) of the GST Act. Conclusion
As all the requirements of section 38-38 of the GST Act are satisfied the supply of your services to NDIS participants are GST-free supplies. No GST is payable on the supply of these GST-free services to NDIS participants.