Private ruling: Supply of community care services
Published: June 2012

Ruling: Q1: Is the supply of community care GST-free? | A1: Yes



Reasons for decision: Summary: Under section 9-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), you make a taxable supply if: · you make a supply for consideration · the supply is made in the course of an enterprise that you carry on · the supply is connected with Australia; and · you are registered or required to be registered for GST. However, the supply is not taxable to the extent that it is GST-free or input taxed. In your case, you provide community care services to the aged and disabled people in Australia, in the course of your enterprise. Your clients make a payment for the provision of your services. Therefore the supply satisfies all the criteria in section 9-5 for a taxable supply. There is no provision in the GST Act which would make the supply input taxed. Therefore we have to consider whether your supply of the community care is a GST-free supply under section 38-30(2) of the GST Act. | Detailed Reasoning - GST-free supply under section 38-30 of the GST Act: Under subsection 38-30(2) of the GST Act, a supply of community care is GST-free if the supplier receives funding under the HACC in connection with the supply. You advised that you receive funding from the governments under the HACC to provide community care services to your clients to assist them to live independently in their own homes Therefore, your supply of community care is a GST-free under subsection 38-30(2) of the GST Act and you are not liable for GST for the payments made by your clients. | Detailed Reasoning - Please Note:: The funding to you under the HACC so that you can provide community care services to your clients is not consideration for the supply of community care to an individual. This funding (under the HACC) is consideration for a supply made to the government entity and the GST status of that supply should be considered separately. The Commissioner is not obliged to refund or credit the overpaid GST to a supplier, where either they have not reimbursed the GST, incorrectly included in the price, to the recipient or the recipient is registered (or required to be registered) for GST. You may find further information on the refund of overpaid GST in the Miscellaneous Taxation Ruling MT 2010/1.

Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. If you have any concerns about this ruling you wish to discuss, you will find our contact details in the fact sheet. | Relevant facts: You are registered for goods and services tax (GST). | You receive funding from the government under the Home and Community Care Act 1995 (HACC) to provide community care services to your clients. | Under the community care program you provide support services to assist aged and disabled people to live independently in their own homes. | The HACC funding requires your clients to make a token payment for your services. | You advised that you have been reporting these payments as considerations for taxable supplies in your activity statements.