GST-free Supply (Care) Determination 2017

Administered by Department of the Treasury

Legislation au F2017L00374 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

 

ISSUED BY THE AUTHORITY OF THE MINISTER FOR AGED CARE

 

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

 

GST-free Supply (Care) Determination 2017

 

 

Authority

 

Paragraph 177-10(1)(d) of A New Tax System (Goods and Services Tax) Act 1999 (the GST Act) provides for the Minister for Aged Care to make a determination for the purpose of paragraph 38-30(4)(b) of the GST Act.

 

Paragraph 38-30(4)(b) of the GST Act covers the provision of GST-free services to aged or disabled people receiving government funded  home care services which are similar to care and services that can be provided under the Home and Community Care Act 1985.

 

Purpose

 

The purpose of the Determination is to allow for care services, which are similar to those that can be provided as GST-free services to aged or disabled people that are targeted persons under the Home and Community Care Act 1958 and are funded by the Commonwealth, a State or Territory, to be GST-free to the targeted persons who receive those care services.

 

In particular, the Determination lists specific services which, when provided to targeted persons, are GST-free.  It also lists specific services which, when provided to the carers of targeted persons, are GST-free.

 

Background

 

The Determination carries on the arrangements made by GST-free Supply (Care) Determination 2000 (the previous determination), which sunsets on 1 April 2017.  The Determination ensures that the care and services made GST‑free by the previous determination remain GST‑free.

 

Consultation

 

The Determination maintains existing arrangements, and so its operation is machinery in nature. Therefore public consultation was not considered to be required. Consultation took place with Treasury.

 

The Determination commences on 1 April 2017.

 

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

 

 

ATTACHMENT

 

Details of the GST-free Supply (Care) Determination 2017

 

 

1                     Name of Determination

Section 1 states the Determination is called the GST-free Supply (Care) Determination 2017.

 

2                     Commencement

Section 2 states that the Determination commences on 1 April 2017.

 

3                     Definitions

Section 3 lists the defined terms for the purpose of the Determination.

 

4  Supply of care to targeted persons

Section 4 provides that the Minister for Aged Care has determined that the supply of care of a kind mentioned in Schedule 1 to targeted persons  is GST-free because it is similar to care provided for under the Home and Community Care Act 1985.

 

The note under section 4 is a reminder that the care listed in Schedule 1 is only GST‑free when a supplier of that care receives funding from the Commonwealth, or a State or Territory.

 

5  Supply of care to carer

Section 5 provides that the Minister has determined that the supply of care of a kind mentioned in Schedule 2 that substantially enables the carer to give care to a targeted person  is GST-free because it is similar to care provided for under the Home and Community Care Act 1985.

 

The note under section 5 is a reminder that the care listed in Schedule 2 is only GST‑free when a supplier of that care receives funding from the Commonwealth, or a State or Territory.

 

Schedule 1

This Schedule lists the care services which will be GST-free when provided to targeted persons.

 

Schedule 2

This Schedule lists the care services which will be GST-free when provided to the carers of targeted persons.


Statement of Compatibility with Human Rights

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

 

GST-free Supply (Care) Determination 2017

 

The GST-free Supply (Care) Determination 2017 (the Determination) 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 legislative instrument

 

The GST-free supply (Care) Determination 2017 (the Determination) provides that certain care services, when provided to aged or disabled persons that are targeted persons under the Home and Community Care Act 1958 or their carers are GST-free.

 

Human Rights Implications

 

The Determination engages the following human rights:

  • The right to an adequate standard of living; and
  • The right to the enjoyment of the highest attainable standard of physical and mental health.

 

Specifically, the Determination engages the right to an adequate standard of living and the right to the enjoyment of the highest attainable standard of physical and mental health, as contained in Article 11(1) and Article 12(1) of the International Covenant on Economic, Social and Cultural Rights and Article 28 and Article 25 of the Convention on the Rights of Persons with Disabilities.

 

The Determination re-makes an existing GST-free determination that sunsets on 1 April 2017. It continues to reduce the cost of providing care services to targeted persons, as well as their carers, by making those services GST-free.  By continuing to make care services more affordable to those who need them, it is promoting the right to an adequate standard of living, and the right to the enjoyment of the highest attainable standard of physical and mental health.

 

Conclusion 

 

The determination is compatible with human rights as it promotes the human right to an adequate standard of living, and the human right to highest standard of physical and mental health.

 

 

 

 

The Hon Ken Wyatt MP

Minister for Aged Care

 

Overview

The GST-free Supply (Care) Determination 2017 was introduced to address the need to continue the provision of GST-free care services to aged and disabled individuals who are targeted persons under the Home and Community Care Act 1958. This Determination, enacted by the Minister for Aged Care, ensures the continuity of GST-free care services that were previously covered under the GST-free Supply (Care) Determination 2000, which expired on 1 April 2017. The policy objective of this Determination is to maintain the affordability of care services for both the targeted persons and their carers by exempting these services from GST. The instrument maintains existing arrangements without necessitating public consultation, reflecting its machinery nature, and has been designed to engage human rights, particularly the right to an adequate standard of living and the right to the highest attainable standard of physical and mental health, as outlined in international human rights instruments.

Scope and Application

The GST-free Supply (Care) Determination 2017 applies to specific care services provided to targeted persons under the Home and Community Care Act 1958 and their carers. This includes both the provision of care services directly to aged or disabled individuals who receive government funded home care services and the provision of care services to their carers. The Determination ensures these services remain GST-free, provided the supplier of these services receives funding from the Commonwealth, a State, or a Territory. Geographically, the Determination has a Commonwealth reach, as it is made under the authority of the Minister for Aged Care and applies to services provided anywhere in Australia. The Determination replaces the previous GST-free Supply (Care) Determination 2000, which expired on 1 April 2017. There are no stated exclusions or exemptions within the Determination itself, though the GST-free status of the services is contingent upon the supplier receiving appropriate funding. The scope of the Determination can be extended or restricted through subordinate instruments, although the current Determination does not specify any such instruments.

Key Provisions

The GST-free Supply (Care) Determination 2017, under the A New Tax System (Goods and Services Tax) Act 1999, outlines specific care services that will be exempt from GST. Section 4 of the Determination states that care services listed in Schedule 1, when provided to targeted persons, will be GST-free. Similarly, Section 5 indicates that care services listed in Schedule 2, when provided to the carers of these targeted persons, will also be exempt from GST. These services must be similar to those provided under the Home and Community Care Act 1985, and the care provider must receive funding from the Commonwealth, a State, or a Territory. The Determination imposes obligations on the parties involved, primarily focusing on the provision of specified care services. Care providers must ensure that the services they offer are listed in Schedule 1 or Schedule 2 to qualify for the GST exemption. Additionally, they must receive funding from the Commonwealth, a State, or a Territory to be eligible for the GST-free status. This requirement is explicitly stated in the notes under sections 4 and 5 of the Determination. Failure to comply with the provisions of the Determination may result in civil or criminal consequences. While the Determination does not explicitly list penalties, non-compliance with GST regulations can generally lead to fines or other penalties under the GST Act. The severity of these penalties depends on the nature and extent of the breach, with potential maximum penalties including fines and imprisonment for serious or repeated offenses. It is essential for care providers to adhere to the conditions set out in the Determination to avoid any legal repercussions.

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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.