Private ruling: GST
Date of advice: 13 October 2017
Published: March 2018

Ruling: Q1: Is the supply of your services to the National Disability Insurance Scheme (NDIS) participant GST-free under section 38-38 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)? | A1: Yes.

Relevant facts and circumstances: ● You are an entity. ● You have an ABN and you are registered for the goods and services tax (GST). ● You provide your services to customers who are NDIS participants. ● Your client has a current NDIS plan which is currently in effect. ● You supply services that are relevant to their NDIS plan. ● Your customers are normally self-managed or have plan manager and they can choose which business they want to use (provided the charges are within the guidelines of what NDIS will pay for these services). ● You have signed written service agreements in place for each of your NDIS clients. ● The service agreement made between you and the NDIS participant includes the following: ● Name of person receiving the services ● Start date and end date of the agreement ● Particulars of the service to be provided ● The rate per hour for your services ● You have agreed amongst other things, to provide services that are reasonable and necessary as specified in the client’s NDIS plan. ● Your client has agreed amongst other things, to work with you to make sure that the services and supports delivered meet their support needs and to inform you of any changes to their NDIS plan.

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

Reasons for decision: Detailed Reasoning - Section 38-38 of the GST Act: Section 38-38 of the GST Act deals with disability supports provided to NDIS participants. For a supply to a participant to be GST-free under section 38-38 of the GST Act, the supply must be: ● to a participant for whom a plan is in effect under section 37 of the National Disability Insurance Scheme Act 2013 (NDIS Act) - which means that the plan must be approved by the National Disability Insurance Agency (NDIA); ● of one or more of the reasonable and necessary supports specified in the statement of supports in the plan; ● made under a written agreement, between the supplier and the participant (or another person), that: ● identifies the participant; and ● states that the supply is of one or more of the reasonable and necessary supports specified in the statement of supports included under subsection 33(2) of that Act, in the participant’s plan; and ● of a kind determined in a legislative instrument by the Minister responsible for Disability Services. The GST-free Supply (National Disability Insurance Scheme Supports) Determination 2017 (the Determination) lists the kinds of supplies to a participant of the NDIS which are GST-free where the supply meets the other conditions in section 38-38 of the GST Act. Based on the facts provided, the supply of your services to the NDIS participant satisfies all the requirements of section 38-38 of the GST Act and is GST-free. When a supply is GST-free, no GST is payable.