Inserts for
Tax Laws Amendment (2011 Measures No. 9) Bill 2011: GST‑free health supplies

EXPOSURE DRAFT (12/10/2011)

Commencement information	
Column 1	Column 2	Column 3	
Provision(s)	Commencement	Date/Details	
1.  			
2.  Schedule ??	The day this Act receives the Royal Assent.		
3.  			
Schedule ??—GST‑free health supplies
  
A New Tax System (Goods and Services Tax) Act 1999
1  At the end of Subdivision 38‑B
Add:
38‑60  Third party procured GST‑free health supplies
Insurers
	(1)	If:
	(a)	a supply is a supply of a service to an insurer; and
	(b)	the service is the supplier making one or more other supplies of goods or services to an individual; and
	(c)	at least one of the other supplies:
	(i)	is *GST‑free under this Subdivision; and
	(ii)	is for settling one or more claims under an *insurance policy of which the insurer is an insurer;
the first‑mentioned supply is GST‑free to the extent that the service consists of supplies covered by paragraph (c).
Note:	For subparagraph (c)(ii), the insurer may be an insurer of the policy because of a portfolio transfer (see section 78‑118).
Compulsory third party scheme operators
	(2)	If:
	(a)	a supply is a supply of a service to an *operator of a *compulsory third party scheme; and
	(b)	the service is the supplier making one or more other supplies of goods or services to an individual; and
	(c)	at least one of the other supplies:
	(i)	is *GST‑free under this Subdivision; and
	(ii)	is made under the compulsory third party scheme;
the first‑mentioned supply is GST‑free to the extent that the service consists of supplies covered by paragraph (c).
Government agencies
	(3)	If:
	(a)	a supply is a supply of a service to an *Australian government agency; and
	(b)	the service is the supplier making one or more other supplies of goods or services to an individual; and
	(c)	at least one of the other supplies is *GST‑free under this Subdivision;
the first‑mentioned supply is GST‑free to the extent that the service consists of supplies covered by paragraph (c).
Parties may agree for supply not to be GST‑free
	(4)	However, a supply is not GST‑free (to any extent) under this section if the supplier and the *recipient have agreed that the supply, or supplies of a kind that include that supply, not be treated as GST‑free supplies.
2  Subsection 78‑118(1)
Omit “this Division applies”, substitute “subsection 38‑60(1) and this Division apply”.
3  At the end of subsection 78‑118(1)
Add:
Note:	Subsection 38‑60(1) provides that certain supplies to insurers are GST‑free.
4  Paragraph 78‑118(2)(a)
Omit “this Division”, substitute “subsection 38‑60(1) and this Division”.
5  Application of amendments
(1)	The amendments made by this Schedule apply in relation to supplies of services to:
	(a)	insurers; or
	(b)	operators of compulsory third party schemes; or
	(c)	Australian government agencies;
made on or after 1 July 2012.
(2)	Subsection 38‑60(4) of the A New Tax System (Goods and Services Tax) Act 1999 applies in relation to agreements made before, on or after 1 July 2012.