ATO ID 2003/1156: GST and access to an individual's health records for a fee
Date of decision: 9 April 2002
Business line: Indirect Tax

Issue
Is the entity, a medical practitioner, making a GST-free supply under subsection 38-7(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it supplies an individual with access to their health records and charges a fee for the service?

Decision
No, the entity is not making a GST-free supply under subsection 38-7(1) of the GST Act when it supplies an individual with access to their health records and charges a fee for the service. The entity is making a taxable supply under section 9-5 of the GST Act.

Facts
The entity is a medical practitioner. The entity is supplying an individual with access to their health records. The entity does not provide an explanation of their health information. The entity charges a fee to supply this service. There is no medicare benefit payable for the service that the entity is providing. The entity is registered for goods and services tax (GST) and the supply satisfies the other positive limbs of section 9-5 of the GST Act.

Reasons for decision
Summary: Under subsection 38-7(1) of the GST Act, the supply of a 'medical service' is GST-free. A 'medical service' is defined under section 195-1 of the GST Act to mean: There is no medicare benefit payable for the service provided by the entity. As such, the service does not fall within the first limb of the definition of medical service as provided in section 195-1 of the GST Act. One of the requirements of the second limb of the definition of medical service is that the supply is generally accepted in the medical profession as being necessary for the appropriate treatment of the recipient of the supply. Appropriate treatment is established where a practitioner 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 the recipient and includes subsequent supplies for the assessed process. The entity is supplying an individual with access to their health records. A supply of access to health information does not involve treatment of any kind and therefore, the requirement that the supply be 'for the appropriate treatment of the recipient of the supply' is not satisfied. As such, the service does not fall within the second limb of the definition in section 195-1 of the GST Act and the supply is not a GST-free supply of a medical service under subsection 38-7(1) of the GST Act. The entity charges a fee for supplying an individual with access to their health records. The entity is registered for GST and the supply satisfies the other positive limbs of section 9-5 of the GST Act. Furthermore, the supply is neither GST-free under any other provision of Division 38 of the GST Act nor input taxed under Division 40 of the GST Act. Therefore, the entity is making a taxable supply under section 9-5 of the GST Act when it supplies an individual with access to their health records and charges a fee for this service.

Legislative references: A New Tax System (Goods and Services Tax) Act 1999 section 9-5 Division 38 subsection 38-7(1) Division 40 section 195-1
Subject references: Goods and services tax GST free GST health Section 38-7 - medical services GST supplies & acquisitions Taxable supply