A New Tax System (Goods and Services Tax) (GST-free Supply – Residential Care – Government Funded Supplier) Determination 2025

Administered by Department of the Treasury

Legislation au F2025L01324 In force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

Issued by the authority of the Minister for Aged Care and Seniors

A New Tax System (Goods and Services Tax) Act 1999

A New Tax System (Goods and Services Tax) (GST-free Supply – Residential Care – Government Funded Supplier) Determination 2025

Purpose and operation

The A New Tax System (Goods and Services Tax) (GST-free Supply – Residential Care – Government Funded Supplier) Determination 2025 repeals and remakes the A New Tax System (Goods and Services Tax) (GST-free Supply—Residential Care—Government Funded Supplier) Determination 2015 to continue existing tax arrangements while reflecting the repeal of the Aged Care Act 1997, and the passage of the Aged Care Act 2024.

This Determination ensures that aged care services that are GST-free when funded by the Commonwealth government are also GST-free when funded by a State or Territory government.

This Determination sets out in subsection 6(1), the services which will be GST-free to residents of government funded residential aged care services.

Background

The purpose of this Determination is to make minor and technical amendments to the A New Tax System (Goods and Services Tax) (GST-free Supply—Residential Care—Government Funded Supplier) Determination 2015 to align with language used under the new aged care legislative framework established by the Aged Care Act 2024.

Authority

Paragraph 177-10(1)(b) of the A New Tax System (Goods and Services Tax) Act 1999 (the GST Act) provides that the Minister for Aged Care may make a determination for the purposes of section 38-25(2)(b) of the GST Act. Subsection 38-25(2) covers the provision of government funded residential care services to aged or disabled people, and allows for a supply of services to be GST-free where:

  • the services supplied are determined to be of a kind similar to those listed in the aged care service list, made under the Aged Care Act 2024; and
  • the supplier of those services receives funding from the Commonwealth, or a State or Territory to supply those services.

Reliance on subsection 33(3) of the Acts Interpretation Act 1901

Subsection 33(3) of the Acts Interpretation Act 1901 provides that where an Act confers a power to make, grant or issue any instrument of a legislative or administrative character (including rules, regulations or by-laws), the power shall be construed as including a power exercisable in the like manner and subject to the like conditions (if any) to repeal, rescind, revoke, amend, or vary any such instrument.

Commencement

This Determination commences at the same time as the Aged Care Act 2024.

Consultation

Due to the nature of the consequential amendments, public consultation was not considered to be required. Consultation was undertaken between the Department of Health, Disability and Ageing, The Treasury and the Australian Taxation Office.

General

This Determination is a legislative instrument for the purposes of the Legislation Act 2003.

Details of this Determination are set out in Attachment A.

This Determination is compatible with the human rights and freedoms recognised or declared under section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011. A full statement of compatibility is set out in Attachment B.

 

 


ATTACHMENT A

Details of the A New Tax System (Goods and Services Tax) (GST-free Supply – Residential Care – Government Funded Supplier) Determination 2025

Section 1 – Name

Section 1 provides that the name of the Determination is the A New Tax System (Goods and Services Tax) (GST-free Supply – Residential Care – Government Funded Supplier) Determination 2025.

Section 2 – Commencement

Section 2 provides the Determination commences at the same time as the Aged Care Act 2024.

Section 3 – Authority

Section 3 provides that the Determination is made under paragraph 177-10(1)(b) of the A New Tax System (Goods and Services Tax) Act 1999.

Section 4 – Schedules

Section 4 provides that each instrument that is specified in a Schedule to the Determination is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to the Determination has effect according to its terms.

Section 5 – Definitions

Section 5 provides that a number of expressions used throughout the Determination are defined in the A New Tax System (Goods and Services Tax) Act 1999, including the terms GST-free, aged care service list and supply.

Throughout the Determination:

Act has the meaning of A New Tax System (Goods and Services Tax) Act 1999.

resident has the meaning of a person as mentioned in paragraph 38-25(2)(a) of the A New Tax System (Goods and Services Tax) Act 1999.

Section 6 – Kinds of services

Subsection 6(1) provides that for the purposes of paragraph 38-25(2)(b) of the A New Tax System (Goods and Services Tax) Act 1999, a service specified in Division 8 of the aged care service list that is supplied to a resident in a residential facility is a service of a kind covered by a provision of the aged care service list specified in regulations made for the purposes of that paragraph. 

Subsection 6(2) provides that for the purposes of paragraph 38-25(2)(b) of the A New Tax System (Goods and Services Tax) Act 1999, to the extent a higher everyday living fee (within the meaning of section 284 of the Aged Care Act 2024) is charged for a service, it is not a service of a kind covered by a provision of the aged care service list. 

Translation of references in Aged Care Rules 2025

Subsection 6(3) provides that for the purposes of that section: 

  • a reference to an individual in Division 8 of the aged care service list is to be read as a reference to a resident; and 
  • a reference to a residential care home in Division 8 of the aged care service list is to be read as a reference to a residential facility. 

The note provides that subject to the requirements of paragraphs 38-25(2)(a) and (c) of the A New Tax System (Goods and Services Tax) Act 1999, the supply of any of the services mentioned in this section is GST-free.

Schedule 1 – Repeals

Item 1 – The whole of the instrument

Item 1 repeals the A New Tax System (Goods and Services Tax) (GST-free Supply —Residential Care —Government Funded Supplier) Determination 2015.


ATTACHMENT B

 

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

A New Tax System (Goods and Services Tax) (GST-free Supply – Residential Care – Government Funded Supplier) Determination 2025

This Disallowable Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview of the Determination

The A New Tax System (Goods and Services Tax) (GST-free Supply – Residential Care – Government Funded Supplier) Determination 2025 repeals the A New Tax System (Goods and Services Tax) (GST-free Supply—Residential Care—Non-government Funded Supplier) Determination 2015.

This Determination ensures that aged care services that are GST-free when funded by the Commonwealth government are also GST-free when funded by a State or Territory government, while reflecting the changes in concepts and language between the Aged Care Act 1997 and the Aged Care Act 2024.

Human rights implications

This Disallowable Legislative Determination engages the following human rights contained in Articles 11(1) and 12(1) of the International Covenant on Economic, Social and Cultural Rights (ICESCR) and Articles 25 and 28 of the Convention of the Rights of Persons with Disabilities (CRPD):

  • the right to an adequate standard of living, including with respect to food, clothing and housing, and the right to the continuous improvement of living conditions (Article 11(1) of ICESCR and Article 28 of CPRD); and
  • the right to the enjoyment of the highest attainable standard of physical and mental health (Article 12(1) of ICESCR and Article 25 of the CPRD).

The Determination ensures that eligible aged or disabled residents of State or Territory government funded residential aged care services will receive GST-free all the residential care services that are GST-free to aged and disabled residents of Commonwealth government funded residential aged care services under the Aged Care Act 2024. In this way, the Determination improves peoples’ access to care and services and promotes the right to an adequate standard of living and the highest attainable standard of physical and mental health.


Conclusion

This Disallowable Legislative Determination is compatible with human rights because it promotes the right to an adequate standard of living and the highest attainable standard of physical and mental health.

 

 

The Hon Sam Rae MP

Minister for Aged Care and Seniors

 

 

Overview

The A New Tax System (Goods and Services Tax) (GST-free Supply – Residential Care – Government Funded Supplier) Determination 2025 was enacted to address the need for a seamless transition in the tax arrangements for residential aged care services following the repeal of the Aged Care Act 1997 and the introduction of the Aged Care Act 2024. This determination ensures that aged care services funded by either the Commonwealth or State/Territory governments remain exempt from GST. It aligns with the new legislative framework and updates the language used in the former GST-free determination to reflect the changes introduced by the Aged Care Act 2024. This change was necessary to maintain the GST-free status for these essential services, thereby ensuring that the financial burden on aged care recipients and their families remains consistent irrespective of the funding source. The Minister for Aged Care and Seniors issued this Determination under the authority of the A New Tax System (Goods and Services Tax) Act 1999, specifically relying on paragraph 177-10(1)(b) of the Act. The primary policy objective of this Determination is to uphold the continuity of GST-free services for residential aged care, thereby supporting the right to an adequate standard of living and the highest attainable standard of physical and mental health for aged and disabled individuals.

Scope and Application

The A New Tax System (Goods and Services Tax) (GST-free Supply – Residential Care – Government Funded Supplier) Determination 2025 applies to services supplied by government-funded residential aged care providers, including Commonwealth, state, and territory entities. It ensures that aged care services remain GST-free when funded by any level of government, aligning with the provisions of the Aged Care Act 2024. This Determination repeals the 2015 version and incorporates minor technical amendments to reflect the updated legislative framework. The services covered are those listed in the aged care service list under the Aged Care Act 2024, supplied to eligible residents in residential facilities. The scope of this Determination is limited to residential care services and excludes services where a higher everyday living fee is charged. The application of this Determination is geographically comprehensive within Australia, applicable to all states and territories, and it will commence simultaneously with the Aged Care Act 2024. The authority for this Determination is derived from paragraph 177-10(1)(b) of the A New Tax System (Goods and Services Tax) Act 1999, and it is subject to the legislative process outlined in the Legislation Act 2003.

Key Provisions

The A New Tax System (Goods and Services Tax) (GST-free Supply – Residential Care – Government Funded Supplier) Determination 2025 primarily aims to ensure that certain aged care services remain GST-free when funded by either the Commonwealth or State and Territory governments (section 6(1)). This includes services specified in Division 8 of the aged care service list, provided they are supplied to a resident in a residential facility (section 6(1)). However, it is important to note that services for which a higher everyday living fee is charged are not covered by this provision (section 6(2)). The Determination also includes a translation of references within the aged care service list, where references to an individual and a residential care home are read as references to a resident and a residential facility, respectively (section 6(3)). This ensures consistency and alignment with the new legislative framework established by the Aged Care Act 2024. The Determination imposes obligations on suppliers of residential care services to ensure they comply with the GST-free provisions outlined in the Act. Specifically, it requires that services supplied to residents in government-funded residential facilities be GST-free, provided they are listed in Division 8 of the aged care service list and do not incur a higher everyday living fee (section 6). Furthermore, it mandates that any references to individuals and residential care homes in the aged care service list be appropriately translated to refer to residents and residential facilities, respectively (section 6(3)). Failure to comply with the provisions of the Determination may result in civil or criminal consequences. The A New Tax System (Goods and Services Tax) Act 1999 provides for various penalties for non-compliance, including fines and imprisonment. For example, individuals or entities that knowingly supply services that should be GST-free may be liable for penalties, and in some cases, imprisonment. The specific penalties depend on the nature and extent of the breach, but they can include fines of up to $22,200 for individuals and $111,000 for bodies corporate, as well as potential imprisonment terms. It is crucial for suppliers to adhere to the Determination to avoid these severe consequences.

Legal classification tags

Area of Law
Taxation Law
Instrument
Determination
Concepts
Commencement Provisions
Licensing & Registration
Regulatory Standards

Interactions

Authorises

All Versions

Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.