Are NDIS Services GST Free?
If you’re using or providing services under the National Disability Insurance Scheme (NDIS), you may wonder whether these services are subject to Goods and Services Tax (GST). In Australia, many NDIS-funded services are indeed GST-free, which makes them more affordable for participants. Here’s a breakdown of how GST applies to NDIS services, what qualifies as GST-free, and what to keep in mind when engaging with NDIS service providers.
What Does GST-Free Mean for NDIS Services?
GST (Goods and Services Tax) is a 10% tax applied to most goods and services in Australia. However, certain disability services provided under the NDIS are considered “GST-free,” meaning no additional tax is added to the service cost. This can make a significant difference in affordability, ensuring that participants get the most value from their funding.
When Are they GST-Free?
For an NDIS service to be GST-free, it must meet specific requirements set by the Australian Taxation Office (ATO):
- The Service Must Be Funded by the NDIS: The service or support must be covered under an NDIS plan and provided specifically for the participant’s disability-related needs.
- The Provider Must Be NDIS-Registered: GST-free services are generally provided by NDIS-registered providers. Non-registered providers may also offer GST-free services if they follow the ATO guidelines.
- Service Type Qualifies as Disability Support: Only certain types of services qualify as GST-free under NDIS, such as personal care, therapy, household assistance, community access, and supported employment.
Services that meet these criteria are not subject to GST, which helps reduce the financial burden on NDIS participants and ensures their funding stretches further.
Examples of GST free services
The following types of NDIS-funded services are typically GST-free if they meet the ATO criteria:
- Personal Care: Assistance with daily living tasks like bathing, dressing, and meal preparation.
- Therapeutic Services: Physiotherapy, occupational therapy, and speech therapy for disability support.
- Assistive Technology: Devices like wheelchairs, communication aids, and mobility equipment.
- Home Modifications: Accessibility modifications, such as ramps and handrails, installed to support the participant’s needs.
Services that do not meet these criteria, such as general medical care or non-disability-specific services, may not qualify as GST-free, even if they are provided to an NDIS participant.
When Are NDIS Services Not GST-Free?
While many NDIS-funded services are GST-free, there are some exceptions. Services may not be GST-free if:
- They Do Not Directly Relate to the Participant’s Disability: Only services essential to supporting the participant’s disability are GST-free.
- They Are Provided Outside of the NDIS Funding: Services not claimed through an NDIS plan, or that are not specifically listed in the participant’s plan, are generally subject to GST.
- They Are General or Non-Specific Services: Services not directly tied to a disability support purpose, such as standard medical appointments or non-essential travel, do not qualify for GST exemption.
How to Ensure your getting it GST free
To make sure the services you’re receiving or providing are GST-free, keep these tips in mind:
- Confirm Eligibility: Check with the service provider to ensure the service meets NDIS and ATO requirements for GST exemption.
- Ask for a Tax Invoice: A proper tax invoice should show whether GST has been charged or if the service is GST-free.
- Work with Registered Providers: Registered providers are more likely to understand and follow the GST exemption guidelines, though non-registered providers can also offer GST-free services if they meet the criteria.
The GST-free status of many NDIS services makes a big difference for participants, maximizing the value of their funding. If you’re an NDIS participant or provider, understanding these GST rules can help ensure transparency and cost-effectiveness in your NDIS journey.
Wanting more information – please contact us today!
