The ATO has stated it considers that appropriate treatment will be established where the 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 recognised professional s particular area of training allows and will include subsequent supplies for the determined process. Essentially, this means that where a practitioner works within their scope of practice, their services will be GST-free. In general, where a practitioner relies upon their professional judgement and delivers treatment according to their level of skill and experience it should be GST-free. However some products supplied to patients in the course of a treatment will be GST-free under certain narrow conditions. Unless those conditions are met, a GST will apply.
Acupuncture is treated in the same way as most other health services.
In most cases the patient would not be charged separately for these items. Items typically covered under this provision are swabs, acupuncture needles, dermal hammers, moxa, massage oil, bandaids, paper towels, liquid soap etc. If there are items used to deliver the actual treatment which are charged separately then they are supplied GST-free to the patient provided that the patient doesn t take all or any part of the items away after the treatment. These examples should be read in the context of the above. Some health services and some products supplied to patients in the course of a treatment will be GST-free under certain narrow conditions.