GST brief article No 2 of 4 - Is my Psychology, Speech Pathology, Occupational Therapy, Physiotherapy, Social work, Dietitian or other Allied Health Service 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:
Is my Psychology, Speech Pathology, Occupational Therapy, Physiotherapy, Social work, Dietitian or other Allied Health Service GST-free?
Your allied health service is GST-free if you answer the following five questions with YES. Think of it like five doors you need to go through. With each Yes, the next door opens.
Door 1- Is my service a listed health service?
If your allied health service is a medical service or an ‘other health service’ that is listed, it is GST-free. A medical service is what a doctor or dentist provides.
An ‘other health service’ is one of 21 services. These are # 1 Aboriginal or Torres Strait Islander Health, # 2 Acupuncture, # 3 Audiology and audiometry, # 4 Chiropody, # 5 Chiropractic, # 6 Dental, # 7 Dietary, # 8 Herbal medicine (including traditional Chinese herbal medicine), # 9 Naturopathy, # 10 Nursing, # 11 Occupational therapy, # 12 Optometry, # 13 Osteopathy, # 14 Paramedical, # 15 Pharmacy, # 16 Psychology, # 17 Physiotherapy, # 18 Podiatry, # 19 Speech pathology, # 20 Speech therapy and # 21 Social work.
If your service falls under one of these, it is a YES and you go through the first door.
Door 2 - Am I a recognised health professional?
That depends on how regulated your profession is. If you need to be registered or licensed, for example as a Psychologist, Occupational Therapist, Speech Pathologist, Social Worker GP, anesthetist, dentist or psychologist, then you are a recognised health professional as long as you have that registration or license.
Door 3 - Does my service follow necessary and appropriate procedures and standards?
This is usually easy to answer. If you do what most practitioners in your profession do, then the answer is Yes. But if you have developed a completely different procedure and it is just you doing it this way, then the answer could be no!
Door 4 - Is My Name on the Invoice?
If your name is on the invoice, then you are the one providing a medical or health service to the patient. It doesn’t matter if the payment goes to the practice who holds the money in trust for you. You are the one being paid for the service. So the door opens for you to go through. But if somebody else’s name is on the invoice handed to the patient, and you just receive a commission, then you are not providing a service to the patient. You are providing a service to the practice and that service is not a medical or other health service.
Door 5 - Is the patient or somebody on behalf of the patient paying me?
If the patient pays you, it is a clear Yes. If a third party pays, then it depends who they are. If Medicare, NDIS, Workers Compensation or private health insurance pays you, then it is as if the patient paid you and it is a Yes. But if somebody else pays you, for example an employer or a life insurance company, then you provide a service to the employer or life insurance company and that service is not a medical or health service since they are not sick. You provide a different service and that service is not GST-free. So it is a No.
So these are the five questions you need to ask. If you answer all five questions with Yes, then your medical or health service is probably GST-free
If you are starting a new business or growing your existing one and are unsure about GST please talk to somebody like us who specialises in bookkeeping and GST for allied health professionals or consult with your registered Tax Agent / Accountant. GST for allied health is not for the faint-hearted. Even though I have attempted to provide some clarity in the 5 steps and doors above, the answer can depend on your unique situation and the above blog post is a general guide only and might not apply to your situation. You should always (ALWAYS) chat with your registered Tax Agent / Accountant if unsure
For more information the Australian tax office has a detailed guide regarding GST for health services here:
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