Private ruling: GST and NDIS funded supports
Date of advice: 4 July 2018
Published: September 2018

Ruling: Q1: Are your supplies of services to NDIS funded participant’s GST-free under section 38-38 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)? | A1: Yes, your supplies of services to NDIS funded participants are GST-free under section 38-38 of the GST Act provided the supports provided are considered reasonable and necessary and the supports are covered by the GST-free Supply (National Disability Insurance Scheme Supports) Determination 2017 (Disability Services Minister’s Determination). See below for further detail. | Q2: Are your supplies of services to non NDIS funded participant’s GST-free under the GST Act? | A2: No, your supplies of services to non NDIS funded participants are not GST-free under the GST Act.

Relevant facts and circumstances: You are registered for goods and services tax (GST). You provide day programs for people with disabilities. You do not receive funding from the Government for the provision of your services.

Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999 section 38-38

Reasons for decision: Summary: Section 38-38 of the GST Act provides that certain supports provided to NDIS participants are GST-free. Section 38-38 of the GST Act states: A supply is GST-free if the supply: (a) is a supply to a participant (within the meaning of the National Disability Insurance Scheme Act 2013 ) for whom a participant ' s plan is in effect under section 37 of that Act; and (b) 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; and (c) is made under a written agreement, between the supplier and the participant or another person, that: (i) identifies the participant; and (ii) states 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; and (d) is of a kind that the *Disability Services Minister has determined in writing. | Detailed Reasoning - NDIS plan is in effect: The participant's NDIS plan must be in effect under section 37 of the National Disability Insurance Scheme Act 2013 (NDIS Act), which means it must be approved by the National Disability Insurance Agency (NDIA).The plan ceases to be effective when it is replaced by another plan, or when the NDIS participant ceases to be a participant in the NDIS. You have stated that most of your participant’s have a NDIS plan. Where your participant’s do not have an NDIS plan then section 38-38 of the GST Act does not apply to making those supplies GST-free. | Detailed Reasoning - Reasonable and necessary supports: The supply must be of one or more reasonable and necessary supports, as defined in the participant's NDIS plan. Where the participant’s NDIS plan specifies an amount (such as time or quantity) of reasonable and necessary supports, any supplies of supports in excess of these specifications will not be a GST-free NDIS supply. Each individual participant’s plan will specify the reasonable and necessary supports and this needs to also be included in your agreement between you and the participant. | Detailed Reasoning - Made under a written agreement: There must be made a written agreement between you, the supplier, and the NDIS participant (or another person). The written agreement must: ● identify the NDIS participant, and ● 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 the NDIS Act, in the participant’s NDIS plan. The written agreement can be between you and a person other than the NDIS participant. Other people can include those who manage the plan and funding for the NDIS participant. This would include the NDIA, a plan management provider registered with NDIA, or a guardian or relative of the NDIS participant. The written agreement may be a single document or a combination of documents, such as letters between you and the other party, and receipts or invoices you issue. It may include documents in electronic form. As long as you have written evidence of a legally binding obligation for you to make the supply to the NDIS participant and that it is a reasonable and necessary support as specified in the participant’s NDIS plan, the requirement for a written agreement is satisfied. You have provided a copy of the template used for your written agreement between you and the NDIS participant. This includes the participant’s name and that the provision of the supports is reasonable and necessary to the participant. | Detailed Reasoning - A supply covered by the Disability Services Minister’s Determination: For the supply to be GST-free, your supply to the NDIS participant must be of a kind covered by the Disability Services Minister's Determination. The Determination applies to supplies made on or after 1 July 2017 but before 1 July 2021. The supplies covered by the Disability Services Minister’s Determination are: ● Specialist Disability Accommodation and accommodation / tenancy assistance (the National Disability Insurance Scheme (Specialist Disability Accommodation) Rules 2016 sets out the requirements that must be met to supply Specialist Disability Accommodation) ● Assistance in coordinating or managing life stages, transitions and supports, including daily tasks in a group or shared living arrangement ● Household tasks ● Assistance to integrate into school or other educational program ● Assistance with and training in travel / transport arrangements, excluding taxi fares ● Assistance to access and maintain education and employment ● Assistive equipment for recreation ● Early intervention supports for early childhood ● Management of funding for supports in a participant’s NDIS plan ● Assistance with daily personal activities (see note 1). Examples of supplies covered by note 1 are: ● Home help ● Personal care ● Home maintenance ● Medication management ● Continence management ● Training in use of aids and appliances ● Specialised assessment and development of daily living and life skills, including community participation (see note 1). Examples of supplies covered by note 1 are: ● Counselling ● Training in use of aids and appliances ● Day care ● Assessment of person’s care needs ● Individual care planning or case management ● Social activities in a residential care setting ● Recreational therapy in a residential care setting ● Assistive equipment for general tasks and leisure, including assistive technology specialist assessment, set up and training (see note 1). Examples of supplies covered by note 1 are: ● Basic equipment for social support ● Provision and monitoring of personal alert systems ● Assessment of person’s care needs ● Training in use of aids and appliances ● Goods to assist with toileting and incontinence management in a residential care setting ● Furnishings in a residential care setting ● Behavioural support and therapeutic supports (see note 1). Examples of supplies covered by note 1 are: ● Counselling ● Personal care ● Community paramedical services ● Individual care planning or case management ● Treatment and procedures in a residential care setting ● Support for people with a cognitive impairment in a residential care setting ● Emotional support in a residential care setting ● Rehabilitation support in a residential care setting ● Home modifications (see note 1). Examples of supplies covered by note 1 are: ● Home modifications that assists a person to remain living at home | Detailed Reasoning - Note 1: These services are only GST-free if it is a supply of a kind listed in: ● Schedule 1 to the GST-free Supply (Care) Determination 2017 ● Section 6 of the A New Tax System (Goods and Services Tax) (GST-free Supply—Residential Care—Government Funded Supplier) Determination 2015, or ● Sections 6 or 7 of the GST-free Supply (Health Services) Determination 2017. The most common examples of supplies in these Determinations have been shown below each of the relevant services covered by the Disability Services Minister's Determination. As such, you are making GST-free supplies under section 38-38 of the GST Act where the participant plan provides for the supports you provide to each individual participant to be reasonable and necessary and the supports are listed in the Disability Services Minister’s Determination. | Detailed Reasoning - Non NDIS funded participants: Where you provide supports to participants who are not funded by the NDIS and do not have an NDIS plan those supplies are not GST-free under section 38-38 of the GST Act. As you do not provide home care or care in a residential setting, there are no supplies of these services that are GST-free under any other section of the GST Act.