Private ruling: GST and supplies of GST-free services under National Disability Insurance Scheme
Published: May 2014

Ruling: Q1: Are you making GST - free supplies under section 38-38 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) in relation to the delivery of services provided to the participants under the National Disability Insurance Scheme (NDIS)? | A1: No, you are not making GST-free supplies under section 38-38 of the GST Act in relation to the delivery of services provided to the participants under the NDIS as the agreement with the participants does not satisfy all of the requirements of section 38-38 of the GST Act. Please refer to the reasons for decision for details.

Relevant facts and circumstances: • You are a sole trader operating a consultancy enterprise and registered for goods and services tax (GST) • You have registered as a service provider with the National Disability Insurance Agency (NDIA) • You have an AUSKEY number and currently you have XXX participants in your case load. • You advised us that you comply with section 38-38 of the GST Act and confirmed the following: • Each participant has a plan determined by a NDIA. • The funded activities are reasonable and necessary. • Each participant has a written agreement with you that identifies the participant, the services that you are providing, the time frame and the total cost. • You are registered to provide the following two services: • Assistance in coordinating or managing life stages, transitions and supports; and • Management of funding for supports in a participant's plan. • You wanted to know whether the services you provide are subject to GST or GST-free. • You have provided us with a copy of an agreement between you and a participant, NDIA participant activity record sheet and participant information and task detail sheet.

Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999 section 38-38. | National Disability Insurance Scheme Act 2013

Reasons for decision: Summary: Supplies of various disability supports are GST-free under provisions in Subdivision 38-B of the GST Act where the supplier of such services receives government funding for the supplies and other requirements are satisfied. Amendments to the GST Act have been made to ensure that certain supplies to a participant are also GST-free where the supply is of a kind determined by the Disability Services Minister and the supply meets the other requirements of section 38-38 of the GST Act. From 1 July 2013, the following conditions must be met for a supply to a participant to be GST-free under section 38-38 of the GST Act. The supply must be: • to a participant for whom a plan is in effect under section 37 of the National Disability Insurance Scheme Act ("NDIS Act") which means the plan must be approved by the National Disability Insurance Agency ("The Agency") • of one or more of the reasonable and necessary supports specified in the statement of supports in the plan. A participant's plan will contain a statement of supports and will identify those that are approved as reasonable and necessary. • made under a written agreement between the supplier and the participant (or another person) that both: • identify the participant, • state that the supply is of one or more of the reasonable and necessary supports specified in the statement of supports in the plan. The written agreement can be between the supplier and a person other than the participant. Other people can include those who manage the plan and funding for the participant. This would include the Agency, a plan management provider registered with the Agency or someone like a guardian or relative of the participant. • of a kind determined in a legislative instrument by the Minister responsible for Disability Services. The GST-free Supply (National Disability Insurance Scheme Supports) Determination 2013 ("the Determination") lists 22 kinds of supplies which are GST-free where the supply meets the other conditions in section 38-38 of the GST Act. The services which you are registered to provide are listed in Schedule 1 to the Determination. The service of 'assistance in coordinating or managing life stages, transitions and supports' is listed at item 2 and 'management of funding for supports in a participant's plan' is listed at item 18 of the Schedule 1 to the Determination. You advised us that each participant has a plan determined by the NDIA and has a written agreement with the participant specifying the support is reasonable and necessary. However, the copy of the agreement with the participant provided by you does not specify that the support provided by you is reasonable and necessary. As explained above, subparagraph 38-38 (c)(ii) of the GST Act provides that the written agreement between the supplier and the participant or another person should state that the supply is a supply of one or more of the reasonable and necessary supports specified in the statement included under subsection 33(2) of that Act, in the participant's plan. Therefore, you are not making GST-free supplies under section 38-38 of the GST Act in relation to the delivery of services provided to the participants under the NDIS as the supply does not satisfy all of the requirements of section 38-38 of the GST Act. This means you are required to include GST in the price for the services provided by you to the participants. Our fact sheet on the NDIS and GST has information on the requirements for the written agreement: https://www.ato.gov.au/Business/GST/In-detail/Your-industry/Health/GST-and-the-National-Disability-Insurance-Scheme/