GST brief article No 1 of 4 - Is my Allied Health Commission as a contractor or business working for another workplace or business GST-free?
Welcome to my mini article series on GST for allied health which will cover 4 quick and easy to read posts. If you are after a longer more detailed post or information on GST and contracting or being a subcontractor please see my post here:
If you are starting a new business or growing your existing one please talk to somebody like us who specialises in bookkeeping and GST for allied health professionals. GST for allied health is not for the faint-hearted!
I recently received the following question: "What is my GST obligation as an allied health contractor? I am registered for GST and will see patients of another business for a percentage of the fee that the business charges the patient. My service as such is a “listed health service” and hence supposedly GST-free. But is that the case when I work as a contractor?”
I wanted to share this question, since it actually describes a very common set-up among allied health professionals, especially when starting out. Rather than entering huge financial commitments setting up your own practice, you can work through another practice on a commission basis and this other practice covers all the outgoings. But when you work as a contractor on a commission basis, do you need to charge GST on your commission?
The answer is yes, since the patient pays the practice, not you. You provide a service to the practice, not the patient. The practice is not sick, hence the service you provide is not a medical or health service and hence not GST-free. As a result, you need to charge GST on your commission.
For more information the Australian tax office has a detailed guide regarding GST for health services here:
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