Service providers should be reporting the cost of services separately to any GST component. The GST should not be included as part of an injured worker’s entitlement and should be identified by the provider as a separate expense on any invoice.
There should be no transactions for GST affecting injured workers’ entitlements, and insurers and self-insurers should not be including any GST component in the service costs reported to WorkCover WA as part of the claims data specifications.
Advice
WorkCover WA does not have the capacity to provide legal advice and is not in a position to provide an interpretation of the requirements of the Australian Taxation Office (ATO) on the application of GST to medical and allied health fees. As the ATO is the department that administers the GST legislation, its role includes providing advice and guidance on the application of GST. WorkCover WA encourages stakeholders to seek advice from the ATO in this regard.
Insurers and service providers are to have regard to the A New Tax System (Goods and Services Tax) Act 1999 in determining which services attract GST.
The ATO prepared a case study entitled Health Industry Partnership – GST and Workers Compensation in consultation with the Insurance Council of Australia and the Australian Medical Association. The case study sets out principles that medical practitioners and workers’ compensation insurers can use to determine the GST status of supplies made by medical practitioners to workers’ compensation claimants.
The ATO also provides advice and private tax rulings to individuals upon request. The case study and private tax rulings can be viewed on the ATO website.
