Is a speech pathology report GST free?

The short answer

It depends on who the report is for. A speech pathology assessment or progress report prepared for the client or their family as part of their treatment is GST-free under section 38-10 of the GST Act. A report requested by a school, employer, lawyer or other third party is usually taxable, unless the NDIS exemption in section 38-38 or the insurer rules in section 38-60 apply.

Sources
A New Tax System (Goods and Services Tax) Act 1999 (Cth), sections 38-10, 38-38 and 38-60
A New Tax System (Goods and Services Tax) (GST-free Supply, National Disability Insurance Scheme Supports) Determination 2021
Australian Taxation Office, GST and health, Other health services
Australian Taxation Office, GST and health, National Disability Insurance Scheme

The treatment test

Speech pathology is a listed health service in the table in section 38-10 of A New Tax System (Goods and Services Tax) Act 1999. A supply is GST-free when a recognised professional provides it and it is generally accepted in the profession as necessary for the appropriate treatment of the recipient of the supply. An assessment report that diagnoses a communication or swallowing difficulty and sets out a therapy plan for the client is part of that treatment, so it is GST-free. The same applies to progress reports written for the client or their parent. The person receiving the supply must be the patient, or someone acting for them.

Reports for NDIS participants

Many speech pathology reports are funded from NDIS plans, including functional capacity reports requested by the NDIA. Section 38-38 makes a supply to an NDIS participant GST-free when the participant has a plan in effect, the supply is a reasonable and necessary support in the statement of supports in the plan, there is a written agreement identifying the participant and the supports, and the supply is covered by the GST-free Supply (National Disability Insurance Scheme Supports) Determination 2021. A service agreement normally satisfies the written agreement requirement. Where these conditions are met, the report is GST-free even though it goes to the agency.

Reports for schools, lawyers and others

When a school, employer, lawyer, court or tribunal commissions a report, that body is the recipient of the supply and the purpose is not treatment. These reports are taxable, and a GST-registered practice adds 10 percent to the fee. Section 38-60 provides exceptions for supplies to an insurer settling a claim, a compulsory third party scheme operator or an Australian government agency, if the service would have been GST-free had it been made to the client. A report for a state education department may fall within this exception, so check who the contracting party is. State workers compensation schemes publish their own fee and GST guidance.

Getting the invoice right

Work out the recipient and purpose before you set the fee, and record it on the invoice. Keep GST-free and taxable services on separate lines if one client receives both. If your practice is not registered for GST because turnover is below the threshold, you cannot charge GST on any report, but taxable report income still counts towards the registration test. Software that defaults every service to GST-free can produce errors on third party reports, so review the tax code on report items. These rules are national, because GST is a Commonwealth tax, but the schemes that commission reports differ by state.

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