Private ruling: Goods and services tax and other health services
Date of advice: 1 December 2020
Published: January 2021
Date scheme commenced: Mid-late 2020

Ruling: Q1: Is the supply of Cryotherapy services a GST-free supply of a health service under section 38-10 of A New Tax System (goods and Services Act) 1999 (GST Act)? | A1: No, the supply of Cryotherapy services is not a GST-free supply of a health service under section 38-10 of the GST Act.

Relevant facts and circumstances: You provide services to individuals through your Cryotherapy and IV Treatment (Cryotherapy services) business located in XXXX. Cryotherapy is a "cold therapy" whereby liquid nitrogen vapours (-170*C) are applied to targeted areas of the body to eliminate internal inflammation, improve joint functionality, motor capacity and mobility, alleviate muscle tension and treats arthritis, bursitis, chronic & acute pain and inflammation in joints and muscles, migraines, post-surgery inflammation, sporting injuries. You also administer amino acids, intravenous acids and other solutions via intravenous drips as part of the Cryotherapy services you provide. Individuals that would avail themselves of this treatment are people who may have recently undergone invasive surgery, are suffering from arthritis, bursitis, any joint pain, muscle tears, ligament/tendon injuries, bulging/herniated vertebral discs, cancer, fibromyalgia and cold/flu symptoms. A major percentage of your clients are from recommendations made by doctors, physiotherapists, chiropractors and naturopaths. However, these are not formal referrals, for instance like where a doctor would refer a patient to a specialist. The services you provide to your clients are not covered by Medicare. The qualifications required for a provider to undertake the provision of Cryotherapy services is: - Statement of Attainment International Cryotherapy Education; - Healthcare Training Service Statement of Attainment Intravenous Cannulation; and - Statement of Attainment Cardiopulmonary Resuscitation & Statement of Attainment First Aid. Entity A is not a medical doctor and is not registered or licensed as a medical practitioner under a law of a State or Territory for the registration of medical practitioners. Entity A holds the following qualifications: - Statement of Attainment International Cryotherapy Education; - Healthcare Training Service Statement of Attainment Intravenous Cannulation; - Statement of Attainment Cardiopulmonary Resuscitation; and - Statement of Attainment First Aid. Entity B holds the following qualifications: - Diploma of Nursing AHPRA; - Intravenous Medication Short Course; - Peripheral Intravenous Cannulation Cert; and - Statement of Attainment International Cryotherapy Education.

Relevant legislative provisions: A New Tax System (goods and Services Act) 1999 Section 38-10

Reasons for decision: Summary: A medical service is: • a service for which a Medicare benefit is payable; or • any other service supplied by or on behalf of a medical practitioner or approved pathology practitioner that is generally accepted in the medical profession as being necessary for the appropriate treatment of the recipient of the supply. In your circumstances, no Medicare benefit is payable for your supply of Cryotherapy services. Further, the Cryotherapy services are not provided by or on behalf of a medical practitioner or approved pathology practitioner. Hence, the requirements of section 38-7 of the GST Act are not met and your supply of Cryotherapy services do not constitute a GST-free medical service in accordance with section 38-7 of the GST Act. Section 38-10 of the GST Act provides that a supply is GST-free where: • it is a listed health service; and • the service is performed by a recognised health professional in that listed health service or under certain circumstances their assistant; and • the service is generally accepted in that listed health profession as being necessary for the appropriate treatment of the recipient of the supply. For a supply to be GST-free under section 38-10 of the GST Act, all three of the above requirements have to be met. If any one of these requirements are not met, the supply will not be GST-free under section 38-10 of the GST Act. | Detailed Reasoning - Listed health services: For a health service that is not defined as a medical service to be GST-free, it must be one of the following: • an Aboriginal or Torres Strait Islander health service • acupuncture • audiology or audiometry • chiropody • chiropractic • dental • dietary • herbal medicine (including traditional Chinese herbal medicine) • naturopathy • nursing • occupational therapy • optometry • osteopathy • paramedical • pharmacy • psychology • physiotherapy • podiatry • speech pathology • speech therapy • social work. The service must be one of the listed services and cannot just be similar to one of these services. As Cryotherapy services is not one of the listed health services, the supply of the Cryotherapy services will not be GST-free under section 38-10 of the GST Act.