GST-free Supply (National Disability Insurance Scheme Supports) Amendment Determination 2015

Administered by Department of Social Services

Legislation au F2015L00112 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

 

Issued by the authority of the Assistant Minister for Social Services

 

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

 

GST-free Supply (National Disability Insurance Scheme Supports) Amendment Determination 2015

 

Subsection 177-10(5) of the A New Tax System (Goods and Services Tax) Act 1999 (the GST Act) authorises the Assistant Minister for Social Services to, by legislative instrument, make a determination of which kinds of supplies may be GST-free for the purposes of paragraph 38-38(d) of the GST Act.

 

Supplies of various disability supports are GST-free under provisions in subdivision 38-B of the GST Act where the supplier receives government funding for the supplies. However, under the National Insurance Disability Scheme (the Scheme), government funding for some of these disability support types is not provided to the suppliers. Instead, the scheme funding is provided to the participant (that is, the person with the disability) or another person managing the funding for the participant.

 

This Determination specifies 22 kinds of supplies of supports which are GST-free where the supply meets the other conditions set out in section 38-38 of the GST Act. The 22 kinds of supplies are intended to reflect the kinds of supplies of disability supports that are GST-free where the supplier receives government funding for the supplies. Certain kinds of supplies listed in the determination are restricted to a list of supplies specified in three determinations, one of which is Schedule 1 to the GST-free Supply (Residential Care – Government-Funded Supplier) Determination 2000.

 

The purpose of the GST-free Supply (National Disability Insurance Scheme Supports) Amendment Determination 2015 is to replace the reference to the GST-free Supply (Residential Care – Government-Funded Supplier) Determination 2000, which is being repealed with a reference to the A New Tax System (Goods and Services Tax) (GST-free Supply—Residential Care—Government Funded Supplier) Determination 2015.

 

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

 

Consultation

As the amendments in this Determination are a consequence of amendments that were made to another instrument, no specific consultation was undertaken in relation to this instrument.

 

Regulation Impact Statement

The Office of Best Practice Regulation has advised that no RIS is required (OBPR ID 17649).

 

Commencement

The Amending Determination is taken to have commenced on 1 July 2014.


ATTACHMENT

 

 

Details of the GST-free Supply (National Disability Insurance Scheme Supports) Amendment Determination 2015

 

Preliminary

 

Clause 1 – Name

This clause states that the name of the amending determination is the GST-free Supply (National Disability Insurance Scheme Supports) Amendment Determination 2015.

 

Clause 2 – Commencement

This clause states that this instrument is taken to have commenced on 1 July 2014.

 

The instrument does not impose any new liabilities on individuals or organisations, and in fact reduces the tax burden on individuals. The instrument provides that various goods and services provided to various care recipients continue to be provided free of GST. This has already been occurring in practice in anticipation of this instrument being made. Consequently, there did not appear to be any circumstances where a person (other than the Commonwealth) would be disadvantaged.

 

Clause 3 – Authority

This clause states that the authority by which this instrument is made is subsection 177-10(5) of the A New Tax System (Goods and Services Tax) Act 1999.

 

Clause 4 – Schedules

This clause states that each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.

 

Under subsection 33(3) of the Acts Interpretation Act 1901, 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.

 

Schedule 1 – Amendments

 

Item 1 – Schedule 1

This item omits the words ‘Schedule 1 to the GST-free Supply (Residential Care – Government-Funded Supplier) Determination 2000’ and substitutes it with ‘section 6 of the A New Tax System (Goods and Services Tax) (GST-free Supply—Residential Care—Government Funded Supplier) Determination 2015’.

 

 

 

 

 

 

Statement of Compatibility with Human Rights

 

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

 

GST-free Supply (National Disability Insurance Scheme Supports) Amendment Determination 2015

 

The GST-free Supply (National Disability Insurance Scheme Supports) Amendment Determination 2015 (the 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 Legislative Instrument

The Legislative Instrument includes the correct reference, replacing the reference to the repealed GST-free Supply (Residential Care – Government-Funded Supplier) Determination 2000 which is being replaced to reflect amendments made to the kinds of specified care and services outlined in Schedule 1 to the Quality of Care Principles 2014 which came into effect on 1 July 2014.

 

Human Rights Implications

The Legislative Instrument is compatible with 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 25 and article 28 of the Convention on the Rights of Persons with Disabilities. The Legislative Instrument ensures that a participant of the National Disability Insurance Scheme will receive GST-free all the disability support services that are GST-free to aged and disabled residents of residential aged care services under the Aged Care Act 1997. In this way, the Legislative Instrument improves peoples’ access to care and services and is beneficial to human rights.

 

Conclusion

The Legislative Instrument is compatible with human rights as it does not raise any human rights issues.

 

 

Senator the Hon Mitch Fifield

Assistant Minister for Social Services

Overview

The GST-free Supply (National Disability Insurance Scheme Supports) Amendment Determination 2015 was enacted to address the issue of GST applicability on certain disability supports provided under the National Disability Insurance Scheme (NDIS). The Assistant Minister for Social Services introduced this amendment as a legislative instrument under subsection 177-10(5) of the A New Tax System (Goods and Services Tax) Act 1999. This amendment seeks to ensure that specified kinds of disability support services remain GST-free, aligning with the broader policy objective of providing equitable access to essential services for individuals with disabilities, and in particular, those receiving support under the NDIS. This amendment effectively updates the legislative reference to reflect recent changes in the quality of care principles, ensuring that the tax treatment of disability supports remains consistent and fair for all participants.

Scope and Application

The GST-free Supply (National Disability Insurance Scheme Supports) Amendment Determination 2015 amends the A New Tax System (Goods and Services Tax) Act 1999 to specify 22 kinds of disability supports that are GST-free where the supply meets other conditions set out in the GST Act. This applies to supplies where the supplier receives government funding for the supplies under the National Disability Insurance Scheme, where the funding is provided to the participant or another person managing the funding for the participant. The determination applies nationally across Australia and replaces the reference to the GST-free Supply (Residential Care – Government-Funded Supplier) Determination 2000 with the A New Tax System (Goods and Services Tax) (GST-free Supply—Residential Care—Government Funded Supplier) Determination 2015. The instrument does not impose any new liabilities on individuals or organisations, and in fact reduces the tax burden on individuals. The instrument provides that various goods and services provided to various care recipients continue to be provided free of GST. This has already been occurring in practice in anticipation of this instrument being made. Consequently, there did not appear to be any circumstances where a person (other than the Commonwealth) would be disadvantaged. The purpose of the Determination is to ensure that participants in the National Disability Insurance Scheme receive GST-free all the disability support services that are GST-free to aged and disabled residents of residential aged care services under the Aged Care Act 1997. The 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, and is compatible with 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 25 and article 28 of the Convention on the Rights of Persons with Disabilities.

Key Provisions

The GST-free Supply (National Disability Insurance Scheme Supports) Amendment Determination 2015 amends the A New Tax System (Goods and Services Tax) Act 1999 (the GST Act) by specifying the kinds of disability support supplies that are GST-free under the National Disability Insurance Scheme (NDIS) (sections 3 and 4). The determination lists 22 kinds of supplies that are exempt from GST when provided under the NDIS. These include both personal care and household support services, aligning with the kinds of supplies that are GST-free for government-funded disability services (section 3). The determination also incorporates specific care and service types outlined in Schedule 1 to the Quality of Care Principles 2014, ensuring consistency with the updated quality standards (section 3). Entities providing disability supports under the NDIS, such as care providers and support workers, must ensure that the supplies they offer are among the 22 specified kinds to qualify for the GST-free status (section 3). These entities should also comply with the conditions outlined in section 38-38 of the GST Act to maintain the GST-free status of their supplies. The NDIS participants and their funding managers must be aware of these provisions to ensure that the disability support services they receive or manage are eligible for the GST exemption (section 38-38). Breach of the conditions specified in the GST Act for GST-free supplies may lead to the loss of the GST exemption, potentially resulting in a requirement to charge GST on the supplies. This could have financial implications for both the suppliers and the NDIS participants. Additionally, entities that fail to comply with the NDIS funding rules and conditions may face administrative penalties under the NDIS legislation. However, the specific penalties for breach are not detailed in the Determination but would be governed by the applicable NDIS provisions and other relevant legislation (sections 3, 38-38). The Legislative Instrument does not introduce new liabilities and ensures the continuity of GST-free status for disability support services under the NDIS, aligning with the quality care principles and enhancing access to care and services. This alignment with human rights is evident in its compatibility with the right to an adequate standard of living and the right to the highest attainable standard of physical and mental health, as recognised in international human rights instruments (sections 3, 4, and the Statement of Compatibility with Human Rights).

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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.