Private ruling: GST - services supplied
Date of advice: 27 March 2026
Published: 22 June 2026
Ruling period: 1 July 20XX to 30 June 20XX
Date scheme commenced: XX XXXX 20XX

Ruling: Q1: Were a registered Podiatrist, as an independent contractor providing podiatry services to a Clinic under the Agreement, liable for GST for the supply of your services? | A1: Yes. The supply the contracted podiatrist provided to the clinic was of professional services, not health services. Podiatry services supplied to patients are GST-free under section 38-10 of the A New Tax System (Goods and Services Tax) Act 1999 (the GST Act). As podiatry is a listed health service, it must be supplied to the recipient of the treatment to qualify as GST-free. Under the Agreement, all patients remained clients of the Clinic, and the clinic received the consideration for podiatry services. The supply by the Podiatrist was a supply of professional services to the Clinic, which is not a GST-free health service because the Clinic was not the recipient of podiatric treatment. As a result, your supply satisfied all elements of a taxable supply under section 9-5 of the GST Act and you were liable for GST and required to issue tax invoices in accordance with section 29-70.

Relevant facts and circumstances: Both the Contractor (operating as a sole trader) and the Clinic (operating through a corporate entity) were registered for GST. The Contractor entered into an independent contractor agreement (the Agreement) with the Clinic to provide podiatry services within a medical practice. Qualifications and Professional Requirements The Podiatrist was listed and registered on the AHPRA and National Board Registry. Additionally, in the Agreement the Contractor warranted that they were duly qualified and held all necessary licences, certifications, and approvals to perform podiatry services, and would continue to maintain these at their own expense. Proof of such qualifications was required upon request. The professional obligations of the Contractor involved that services be provided with the diligence and care expected of a qualified and experienced podiatrist, and in compliance with all applicable legislation, regulations and professional policies. Nature of the Relationship The Agreement defined the relationship between the parties as the Contractor being engaged as an independent Contractor and not as an employee. The Agreement did not create a partnership, and the Contractor had no authority to bind the Clinic without consent. The Clinic retained the right to engage additional Contractors or staff on a non-exclusive basis. Services Provided Within the Agreement, the Contractor was responsible for providing podiatry services in accordance with patient needs. This included, but was not limited to, general treatments, biomechanical assessments, and orthotic-related work. Facilities and Equipment The Agreement listed facilities supplied by the Clinic to the Contractor during the period of the Agreement, which included: (1) Equipment necessary for podiatry services (2) Consumable items (3) Sterilisation equipment (4) Reception and administrative support (5) Maintenance of equipment Contractor Remuneration The Agreement defines the Contractor's Remuneration as 50% of the professional fee. The professional fee meant all the billings directly generated by the Contractor in connection with the Services rendered by the Contractor at the Company, as well as any fees charged through any other facilities used by the Contracted and Credited to the Company. The Agreement notes that the Contractors Remuneration is to be paid by the Principal, will be the gross entitlement, and will not be inclusive of GST. GST Clause The Agreement provided that if a payment constituted consideration for a taxable supply, GST was payable as an additional amount. The clause also addressed reimbursement rules, adjustment events, invoicing requirements, and GST registration obligations of both parties. Invoicing Practices Throughout the engagement, the Contractor issued weekly invoices to the Clinic. Examples provided to the ATO showed the following features: (1) Supplier details listed the Contractor's trading information. (2) The document was titled "Invoice for Podiatric Services." (3) The Clinic entity was listed as the recipient. (4) The invoice included an issue date that corresponded with the weekly service period. (5) The invoice was marked as a "Tax Invoice" and included a sequential invoice number. (6) The description of services was recorded as "50% of services as per attached record." (7) The invoice separately stated the fee and GST. (8) The total balance included both the fee and the GST amount. (9) Payment details were provided at the bottom of the invoice. Client Ownership and Records Within the Agreement it is provided that the Clients referred to the Contractor will be clients of the Clinic, not the Contractor. Additionally, all Client records created during the Contractor's provision of services remained the property of the Clinic.

Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999 subsection 9-5 | A New Tax System (Goods and Services Tax) Act 1999 subsection 9-40 | A New Tax System (Goods and Services Tax) Act 1999 subsection 11-5 | A New Tax System (Goods and Services Tax) Act 1999 subsection 11-15 | A New Tax System (Goods and Services Tax) Act 1999 subsection 29-70 | A New Tax System (Goods and Services Tax) Act 1999 subsection 38-10 | A New Tax System (Goods and Services Tax) Act 1999 subsection 195-1

Reasons for decision: Summary: A supply of a health service is GST-free under section 38-10 of the A New Tax System (Goods and Services Tax) Act 1999 (the GST Act) if three statutory criteria are met: (a) it is a service of a kind specified in the table in this subsection, or of a kind specified in the regulations; and (b) the supplier is a recognised professional in relation to the supply of services of that kind; and (c) the supply would generally be accepted, in the profession associated with supplying services of that kind, as being necessary for the appropriate treatment of the recipient of the supply. First, the service must be one of the kinds listed in the table in subsection 38-10(1). Podiatry is expressly listed at item 18 of that table. Second, the supplier must be a recognised professional in relation to the supply. Section 195-1 of the GST Act defines a 'recognised professional' as; ' a person who is registered, permitted, or approved under State or Territory law to supply that kind of service.'. In Australia, podiatrists must be registered with the Podiatry Board of Australia to practise, which satisfies the statutory requirement for recognised professional status. Here, the Contractor is a registered podiatrist, with their registration listed on The Australian Health Practitioner Regulation Agency and National Boards. Third, the service must be generally accepted within the podiatry profession as being necessary for the appropriate treatment of the recipient. The Commissioner's guidance explains that appropriate treatment requires a professional assessment of the patient's condition and the provision of a treatment that is accepted by the profession as suitable for that condition. In a typical clinical setting, where a patient presents with a podiatric condition and receives treatment from a registered podiatrist, these requirements are satisfied. Accordingly, a supply of podiatry services to a patient is ordinarily GST-free under section 38-10. | Detailed Reasoning - Identifying the recipient of the supply: The GST outcome in Contractor-Clinic arrangements depends on correctly identifying who receives the podiatry services and who receives the contractor's professional services. The recipient of the supply must be identified when determining whether a health service is GST-free. Here, the supply in question is the podiatry care. Two common structures exist in allied health settings. In the first structure, the practitioner rents rooms or administrative support from the clinic and supplies podiatry services directly to patients. In such cases, the practitioner's supply to the patient may be GST-free under section 38-10, but the provision of the rooms to the practitioner by the clinic will not be GST-free. In the second structure, the clinic engages the practitioner to deliver podiatry services on the clinic's behalf. The clinic supplies the GST-free podiatry service to the patient, receives the patient fees, and the practitioner supplies professional services to the clinic. The practitioner's supply to the clinic is not a GST-free health service because the clinic is not the recipient of appropriate treatment. The Agreement clearly reflects the second structure. Within the Agreement, it sets that all clients treated by the Contractor remain clients of the Company, not of the Contractor. The Contractor, therefore, does not supply podiatry services to patients; instead, the Clinic supplies podiatry services to patients and receives the fees. This is reinforced within the Agreement where the relationship states that ownership of all client records is vested in the Company; illustrating that the Contractor is not involved with the clients outside of providing the supply of podiatry care. The Agreement also states that the Principal has engaged the Contractor to provide services for the benefit of both parties, further confirming that the Contractor supplies professional services to the Clinic rather than to patients. | Detailed Reasoning - Character of the supply made by the contractor: Under the Agreement, the Clinic charges patients 100% of the professional fee for podiatry services. The Contractor does not invoice or receive payment from patients. Instead, the Contractor issues weekly invoices to the Clinic. The Contractor receives 50% of professional fees, reflecting the Contractor's remuneration for services performed for the Clinic. The remuneration to the Contractor by the Principal is for professional services, as this is the supply provided to the Principal. The GST-free podiatry services were supplied to the patient, under the instruction of the Principal. Per the Agreement between the Clinic and the Contractor, the remuneration is described as consideration for providing services "at the Company." This wording supports the conclusion that the Contractor performs services on behalf of the Clinic, at the Clinic's premises, rather than supplying health services directly to patients. Additionally, the Agreement confirms that the Contractor is not an employee of the Company, as it states that no superannuation is payable. This illustrates that the Contractor is supplying services to the Clinic in the course of an enterprise and is liable for GST where the supply is taxable. The Agreement clarifies that the Contractor's Remuneration does not include GST and that any GST must be added to the remuneration if applicable. The flow of consideration reinforces this characterisation. Patients pay the Clinic for the podiatry services, which are GST-free under section 38-10. Separately, the Contractor invoices the Clinic weekly for the Contractor's Remuneration, in accordance with the Agreement. Although calculated by reference to patient billings, this invoicing does not represent a charge to patients; it is payment for the Contractor's supply of services to the Clinic. Because the Clinic is not the recipient of podiatric treatment, the Contractor's supply to the Clinic cannot be GST-free under section 38-10. The Contractor is instead making a taxable supply to the Clinic. As established above, the supply of podiatry services to a patient is GST-free for the patient. As the Principal was not the entity receiving the supply of podiatry services, the supply you make to the Clinic is not of a medical service as defined in the Act. Accordingly, it is not GST-free under section 38-10, and as a result is a taxable supply. | Detailed Reasoning - GST consequences: Because the supply is a taxable, you must issue a tax invoice that complies with section 29-70. Section 29-70 sets out that a tax invoice is a document which includes: (a) it is issued by the supplier of the supply or supplies to which the document relates, unless it is a recipient created tax invoice (in which case it is issued by the recipient); (b) it is in the approved form; (c) it contains enough information to enable the following to be clearly ascertained: (i) the supplier's identity and the supplier's ABN; (ii) if the total price of the supply or supplies is at least $1,000 or such higher amount as the regulations specify, or if the document was issued by the recipient--the recipient's identity or the recipient's ABN; (iii) what is supplied, including the quantity (if applicable) and the price of what is supplied; (iv) the extent to which each supply to which the document relates is a taxable supply; (v) the date the document is issued; (vi) the amount of GST (if any) payable in relation to each supply to which the document relates; (vii) if the document was issued by the recipient and GST is payable in relation to any supply--that the GST is payable by the supplier; (viii) such other matters as the regulations specify; (d) it can be clearly ascertained from the document that the document was intended to be a tax invoice or, if it was issued by the recipient, a recipient created tax invoice. The Commissioner's detailed requirements for tax invoices are set out in Goods and Services Ruling 2013/1 Goods and services tax: tax invoices . The invoices examined contained the necessary information and satisfied these requirements.