Private ruling: GST and supplies made to a public hospital
Date of advice: 14 May 2020
Published: June 2020

Ruling: Q1: Is the supply of your services to a government run public hospital a GST-free supply under subsection 38-60 (3) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)? | A1: Yes, the supply of your services to a government run public hospital is a GST-free supply under subsection 38-60 (3) of the GST Act.

Relevant facts and circumstances: · You are a registered medical practitioner. · You have entered into a contract with a public hospital (the Hospital). You are not an employee of the Hospital. · The scope of your services under the contract with the Hospital is to provide a certain service to the patients of the Hospital. · The Hospital is a government run public hospital.

Relevant legislative provisions: Section 38-60 of the A New Tax System (Goods and Services Tax) Act 1999

Reasons for decision: Summary: Subsection 38-60 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) states: If: (a) a supply is a supply of a service to an * Australian government agency; and (b) ) the service is the supplier making one or more other supplies of goods or services to an individual; and (c) at least one of the other supplies is wholly or partly * GST-free under this Subdivision; the first-mentioned supply is GST-free to the extent that the other supplies mentioned in paragraph (b) are GST-free under this Subdivision. (terms marked with asterisks (*) are defined in section 195-1 of the GST Act) · Is the Hospital an Australian government agency? The term 'Australian government agency' is defined in section 995-1 of the Income tax assessment Act 1997 as follows: Australian government agency means: (a) the Commonwealth, a State or a Territory; or (b) an authority of the Commonwealth or of a State or a Territory. · It the Commissioners' view that a government run public hospital is an authority of the Commonwealth or State and thus an Australian Government agency for the purposes of paragraph 38-60(3)(a) of the GST Act. Accordingly the Hospital, which is a government run public hospital is an Australian government agency. · the service is: the supplier making one or more other supplies of goods or services to an individual; The other supplies you make are the specific services provided to individual patients. · at least one of the other supplies is wholly or partly GST-free under this Subdivision The specific services you provide to the individual patients are GST-free as a medical service under section 38-7 of the GST Act. | Detailed Reasoning - Conclusion: Given the supply you make to the Hospital meets the requirements of subsection 38-60(3) of the GST Act, it is a GST-free supply.