Private ruling: Goods and services tax (GST)
Date of advice: 8 March 2017
Published: August 2017

Ruling: Q1: Are you an ambulance service for the purposes of subsection 38-10(5) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)? | A1: Yes, we consider that you are an ambulance service for the purposes of the GST Act. This is because you were primarily established for the purposes of rendering first aid and emergency treatment to, and the transport of, sick and injured persons and you are permitted to and operate as an ambulance service. | Q2: As an ambulance service, are you supplying a medical service or other health service that is GST-free under the following GST provisions?: Scenario (a) Section 38-7 of the GST Act or some other section of the GST Act where the patient and the contracting party are the same, or a relative of the patient engages you to provide ambulance services. Scenario (b) Section 38-60 of the GST Act or some other section of the GST Act, where: ● you are contracted by an insurer to provide ambulance services to a patient in settlement of a claim under an insurance policy created by that insurer; or ● you are contracted by an operator of a statutory compensation scheme to provide ambulance services to a patient in settlement of a claim for compensation under that scheme; or ● you are contracted by a CTP operator under a CTP scheme to provide ambulance services to a patient and the supply you make to the patient is made under the CTP scheme; or ● you are contracted by an Australian government agency to provide ambulance services to a patient. | A2: Yes. Under scenario (a) you are making a GST-free supply of ambulance services pursuant to subsection 38-10(5) of the GST Act in return for the fee you receive. Under scenario (b) you are making a GST-free supply pursuant to section 38-60 of the GST Act in return for the fee you receive. (Although section 38-60 of the GST Act does not mention statutory compensation schemes, section 78-100 of the GST Act contains a special rule that provides that subsection 38-60(1) of the GST Act applies in relation to a supply made in settlement of a claim for compensation under a statutory compensation scheme in the same way that it applies to a supply made in settlement of a claim under an insurance policy.) | Q3: Is the fact that you undertake international travel as part of your operations, and that international travel is GST-free in its own right relevant to the treatment of the services you supply when taken as a whole? | A3: Under the circumstances set out in question 2, you are making a GST-free supply of ambulance services under subsection 38-10(5) of the GST Act or a GST-free supply to a third party under section 38-60 of the GST Act. This will be regardless of whether or not there is any overseas transport involved. Where there is overseas transport and treatment involved, your supply of the service will also be GST-free under section 38-190 of the GST Act, which deals with services provided to individuals outside Australia (or partly GST-free under that provision if there is also a domestic component of the travel and treatment). The international travel component of your ambulance service (where applicable) is also GST-free under section 38-355 of the GST Act, which deals with international travel. Where you are making a GST-free supply under a health provision of the GST Act, it is not necessary to determine whether any international services exemptions also apply.

Relevant facts and circumstances: You are registered for GST. You were primarily established for the purpose of rendering first aid and emergency treatment to, and the transport of, sick and injured persons and you are permitted to and operate as an ambulance service. Specifically, you are permitted to and do operate as an air ambulance service. You maintain a fully qualified medical and nursing team on call to mobilise and execute the retrieval and transportation of patients. You also provide the medical equipment supplies and drugs to the patient, which are required while they are in your care. You are based in Australia but will carry out both domestic charters and charters that require you to retrieve or deliver a patient outside Australia. The aircraft are charted from an independent charter company but are fitted out to your specifications which include internal fittings, bed or stretcher accommodation and patient loading apparatus. Charters can be requested by a private individual or their family. They can also be requested by a government agency (usually through the public hospital or emergency services), an insurance company in settling a claim under a policy, or by the operator of a statutory compensation scheme.

Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999 subsection 38-10(5) | A New Tax System (Goods and Services Tax) Act 1999 section 38-60 | A New Tax System (Goods and Services Tax) Act 1999 section 38-190 | A New Tax System (Goods and Services Tax) Act 1999 section 38-355 | A New Tax System (Goods and Services Tax) Act 1999 section 78-100