ATO ID 2004/501: GST and speech therapy in a group environment following a detailed one on one assessment of a child
Date of decision: 22 July 2002
Business line: Indirect Tax

Issue
Is the entity, a speech pathologist, making a GST-free supply under subsection 38-10(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) when, after conducting a detailed one on one assessment of a child, the entity supplies speech therapy to the child in a group environment?

Decision
Yes, the entity is making a GST-free supply under subsection 38-10(1) of the GST Act when, after conducting a detailed one on one assessment of the child, the entity supplies speech therapy to the child in a group environment.

Facts
The entity is a speech pathologist. The entity supplies speech therapy to children in a group environment. The entity undertakes a detailed one on one assessment of a child's language skills prior to the child attending therapy. This assessment is conducted to determine whether speech therapy in a group environment will be beneficial for the child. From the assessment, the entity plans the content of the speech therapy sessions to target the specific needs of the children attending. Speech therapy conducted in a group environment, under these circumstances, is accepted within the speech pathology profession as an appropriate method of treating a child with speech difficulties. The entity is a member of the relevant national professional association and is a recognised professional as defined in section 195-1 of the GST Act. The entity is registered for goods and services tax (GST).

Reasons for decision
Summary: Under subsection 38-10(1) of the GST Act, an entity makes a GST-free supply of other health services if: Speech pathology services are listed at item 19 in the table in subsection 38-10(1) of the GST Act and the entity is a recognised professional in relation to the supply of speech pathology. As such, the first two requirements under subsection 38-10(1) of the GST Act are satisfied. The third requirement is that the treatment must be generally accepted in the relevant health profession as being necessary for the appropriate treatment of the recipient. 'Appropriate treatment' will be established where a 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 professional area of training allows. It will include subsequent supplies for the determined process. Appropriate treatment includes the principles of preventative medicine. Such treatment must be generally accepted in the profession associated with supplying services of that kind, as being necessary. The entity undertakes a detailed one on one assessment of a child's language skills prior to the child attending therapy. This assessment is to determine whether speech therapy in a group environment will be beneficial for the child. From the assessment, the entity plans the content of the speech therapy sessions to target the specific needs of the children attending. Therefore, the entity has assessed the child's health to determine the appropriate treatment for the child. Speech therapy conducted in a group environment, under these circumstances, is accepted within the speech pathology profession as an appropriate method of treating a child with speech difficulties. As such, the third requirement of subsection 38-10(1) of the GST Act is satisfied. The entity's supply of the speech therapy satisfies all of the requirements under subsection 38-10(1) of the GST Act. Therefore, the entity is making a GST-free supply under subsection 38-10(1) of the GST Act when after conducting a detailed one on one assessment of the child, the entity supplies speech therapy to the child in a group environment.

Legislative references: A New Tax System (Goods and Services Tax) Act 1999 subsection 38-10(1) subsection 38-10(1) table item 19 section 195-1
Subject references: Goods and service tax GST free GST health Section 38-10 - other health services