Legislative developments – 2011 – Third party procured GST-free health supplies

Tax and Superannuation Laws Amendment (2012 Measures No.1) Act 2012 received royal assent on 27 June 2012


  • In the 2011-12 Budget the Government announced that it would amend the GST to ensure that certain supplies made to health insurers in the course of settling health insurance claims are GST-free.  The measure is in response to the decision of the Full Federal Court in Commissioner of Taxation v Secretary to the Department of Transport (Victoria) [2010] FCAFC 84.
  • The proposed amendment is intended to restore the underlying policy intention of the GST law by treating certain supplies by a health are provider to an insurer in settlement of an insurance claims GST-free.  It will also clarify that supplies made under a compulsory third party scheme or to an Australian government agency are GST-free supplies, where there underlying supply of health related goods or services to the individual are GST-free
  • The measure takes effect from 1 July 2010

Links to documents


Exposure Draft legislation

Consultation process

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