Private ruling: GST and supplies of meals by community organisations
Published: April 2014

Ruling: Q1: Is the provision by you of frozen meals to your clients GST-free? | A1: Yes

Relevant facts and circumstances: This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling. • You are a charitable institution endorsed for goods and services tax (GST) purposes and is registered for GST. • You acquire frozen meals from an external third party in a similar industry. • You are charged GST on these acquisitions. • You provide these frozen meals to the elderly and other customers at their homes under a "Joint HACC Program". • You receive funding from the Commonwealth Government in order to conduct this service.

Relevant legislative provisions: All references are to the A New Tax System (Goods and Services Tax) Act 1999 : Section 9-5 | Section 9-30 | Section 38-30

Reasons for decision: Summary: Under subsection 38-30(4) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act, a supply of meals is GST-free is GST-free if the supplier receives funding under the Home and Community Care Act 1985 (HACC) in connection with the supply and satisfies certain other criteria. As you receive such funding and satisfy the other requirements as evidenced by your HACC Agreement, the supply of the frozen meals from you to your clients will be GST-free. | Detailed Reasoning - Detailed reasoning: Subsection 9-30(1) of the GST Act states that a supply is GST-free if it is GST-free under Division 38 of the GST Act or it is a supply of a right to receive a supply that would be GST-free. Subdivision 38-B of the GST Act sets out the requirements for a supply relating to Health to be GST-free. Under section 38-30 of the GST Act, certain supplies will be GST-free. Under subsection 38-30(4) the supply of meals is GST-free where the supplier receives funding from the Commonwealth, a state or a territory in connection with the supply and it is made to a frail, older person or a younger person who: • has a moderate, severe or profound disability (including addiction to a drug) • lives at home, and • would, in the absence of services of the kind mentioned in Schedule 1, be at risk of prematurely or inappropriately needing n long term care in a hospital or other institution, or n residential care within the meaning of the Aged Care Act 1997 . | Detailed Reasoning - Applying the Legislation to Your Situation: You are funded for the performance of your activities (the provision of meals) under the HACC. Under subsection 38-30(4) of the GST Act, a supply of meals is GST-free if the supplier receives funding under the HACC in connection with the supply and it is made to a frail, older person or a younger person who: • has a moderate, severe or profound disability (including addiction to a drug) • lives at home, and • would, in the absence of services of the kind mentioned in Schedule 1, be at risk of prematurely or inappropriately needing n long term care in a hospital or other institution, or n residential care within the meaning of the Aged Care Act 1997. Accordingly, as you receive such funding and satisfy the other requirements as evidenced by your HACC Agreement, the supply of the frozen meals from you to your clients will be GST-free.