Is physiotherapy GST-free in Australia?
Yes, physiotherapy is generally GST-free in Australia when it meets the three conditions in section 38-10 of the GST Act. Physiotherapy is a listed health service, so a physiotherapist treating a patient will usually not charge GST. Some things a practice sells, such as certain goods, can still attract GST.
ATO, GST and health: other health services
GST Act s 38-10
The three conditions in s 38-10
Under section 38-10 of the GST Act, an other health service is GST-free when all three conditions are met: it is a listed health service; it is supplied by a recognised professional in that service; and it is generally accepted in that profession as being necessary for the appropriate treatment of the recipient. Physiotherapy is one of the listed services.
When GST can still apply
The exemption covers treatment of the patient. It does not automatically cover everything a practice sells. Goods that are not themselves GST-free, services supplied to a third party rather than the patient, and reports or services not for the patient's own treatment can be taxable. Cosmetic or non-clinical services may also fall outside the exemption.
The practical answer
A standard physiotherapy consultation that treats the patient and is accepted as clinically necessary is GST-free. If you are unsure about a particular product or service, check it against the three conditions or seek advice from a tax adviser or the ATO.
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