Private ruling: Supply of equine therapy services
Date of advice: 22 March 2019
Published: May 2019

Ruling: Q1: Is the supply of equine therapy by you to participants who have a National Disability Insurance Scheme (NDIS) plan in effect a GST-free supply under section 38-38 of the A New Tax System (Goods and Services Tax) Act 1999 ? | A1: No, the supply of equine therapy by you to participants who have a NDIS plan in effect is not a GST-free supply under section 38-38 of the A New Tax System (Goods and Services Tax) Act 1999 .

Relevant facts and circumstances: ● You carry on an enterprise of providing equine therapy to those who suffer from certain medical conditions as part of their treatment. ● You do not receive any government funding. ● You provide equine therapy to patients (participants) who have a National Disability Insurance Scheme (NDIS) plan in effect. ● Each participant has a written service provider agreement with you which outlines the therapy that will be undertaken. ● The therapy that you supply to your patients is “reasonable and necessary supports” as defined in the participant's plan. ● You are not paid directly from the NDIS portal. Depending on the condition of the participant, you receive payment for your services to those participants under a NDIS plan from the following sources: 1. Australian Foundation for Disability (AFFORD) https://www.afford.com.au/ who makes make the payment on behalf of the participant. 2. Planned Partners https://planpartners.com.au/ who make the payment on behalf of the participant as the participant does not have the ability to manage their own payments. 3. Directly from the participant, where the participant has the ability to manage their own payments.

Relevant legislative provisions: Section 9-5 of the A New Tax System (Goods and Services Tax) Act 1999 | Section 38-38 of the A New Tax System (Goods and Services Tax) Act 1999

Reasons for decision: Summary: Under section 38-38 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) if the following conditions are met, the supply to a participant under the NDIS scheme is GST-free: ● The participant has a plan in effect. ● The supply is of reasonable and necessary supports that are specified in the statement of supports in the participant's plan. ● There is a written agreement between you and the participant (or another person). ● The supplies are of a kind determined in a legislative instrument by the Minister responsible for Disability Services. Your services meet the requirements outlined under the first three dot points mentioned above under section 38-38 of the GST Act. The issue to be determined here is whether the supply of equine therapy is of a kind determined in a legislative instrument by the Minister responsible for Disability Services (in other words whether the supply of your equine therapy services meets paragraph 38-38(d) of the GST Act which requires the supplies to be of a kind determined in a legislative instrument by the Minister responsible for Disability Services). The relevant legislative instrument to consider is the GST-free Supply (National Disability Insurance Scheme Supports) Determination 2017 (Determination). In particular, it is necessary to determine whether the supply of your equine therapy services meets either paragraph 3 or 4 of the Determination. Paragraph 3 of the Determination states: | Detailed Reasoning - 3 Supplies that are GST-free: For the purposes of paragraph 38-38(d) of the Act, a supply of a kind described in Schedule 1 is GST-free if the supply also meets the other requirements of section 38-38 of the Act. Given that the supply of your equine therapy meets the other requirements of section 38-38 of the GST Act, it is necessary to see whether the supply of your equine therapy is of a kind described in schedule 1 of the Determination. The supply of your equine therapy does not fall within any of the items in Schedule 1 of the Determination which is stated as follows: | Detailed Reasoning - Schedule 1—Supplies of supports that are GST-free*: *subject to meeting the requirements set out in section 3 of this Determination | Detailed Reasoning - Supply: 1 Specialist Disability Accommodation and accommodation / tenancy assistance 2 Assistance in coordinating or managing life stages, transitions and supports, including daily tasks in a group or shared living arrangement 3 Household tasks 4 Assistance with and training in travel / transport arrangements, excluding taxi fares 5 Interpreting and translation 6 Assistance to access and maintain education and employment 7 Assistive equipment for recreation 8 Early intervention supports for early childhood 9 Management of funding for supports in a participant’s plan Paragraph 4 of the Determination states: | Detailed Reasoning - 4 Supplies that are GST-free if they are listed in other Determinations: For the purposes of paragraph 38-38(d) of the Act, a supply of a kind described in Schedule 2 is GST-free if: (a) the supply also meets the other requirements of section 38-38 of the Act; and (b) the supply is of a kind listed in any of the following: (i) Schedule 1 to the GST-free Supply (Care) Determination 2017 ; (ii) section 6 of the A New Tax System (Goods and Services Tax) (GST free Supply—Residential Care—Government Funded Supplier) Determination 2015 ; (iii) sections 6 or 7 of the GST-free Supply (Health Services) Determination 2017 ; or (iv) such later replacement determination from time to time that has been made for the purposes of sections 38-15, 38-25 and 38-30 of the Act. Accordingly, in order to satisfy paragraph 4 of the Determination, the supply or your services must fall within Schedule 2 of the Determination which provides: | Detailed Reasoning - Schedule 2—Supplies of supports that are GST-free if they are listed in other determinations*: *subject to meeting the requirements set out in section 4 of this Determination | Detailed Reasoning - Supply: 1 Assistance with daily personal activities 2 Specialised assessment and development of daily living and life skills, including community participation 3 Assistive equipment for general tasks and leisure, including assistive technology specialist assessment, set up and training 4 Behavioural support and therapeutic supports 5 Home modifications Given the supply of your equine therapy services does not come within Schedule 2 of the Determination the supply does not satisfy paragraph 4 of the Determination either. Accordingly, the supply of your services does not meet the fourth requirement of section 38-38 of the GST Act. Therefore, the supply of your equine therapy services is not GST-free under section 38-38 of the GST Act.