GST for Medical Professionals: What You Need to Know
- Leigh Glover
- Jan 15
- 2 min read
Updated: Feb 12
As a medical professional, your priority is patient care, not navigating the complexities of GST. But whether you’re a GP, physiotherapist, or run a wellness clinic, understanding how GST applies to your services and products is crucial. Don’t stress—I’ve got you covered with this straightforward guide!
Are Medical Services GST-Free?
Good news! Most medical services are GST-free, as long as they’re essential for treating or preventing a patient’s health issues.
To qualify as GST-free:
The service must be provided by a recognised health professional.
It must be directly related to the patient’s care.
Examples of GST-free services:
GP consultations, specialist appointments, and therapy sessions.
Allied health treatments like physiotherapy or psychology.
Cancellation fees for GST-free services.
Not sure if a service qualifies? Check if it’s eligible for a Medicare benefit, that’s usually a good indicator.
When Does GST Apply?
There are some situations where GST kicks in. These include:
Cosmetic or Non-Therapeutic Services: If it’s not essential for health, it’s taxable.
Goods You Sell: Items like yoga mats, vitamins, or supplements are generally taxable.
Services to Businesses: Supplies to organisations (e.g., reports to insurers) are taxable unless they qualify for a Medicare benefit.
Mixed Services and Products
If you offer both GST-free and taxable items or services, it’s important to track each one separately. Here are a few examples:
A psychologist provides therapy sessions (GST-free) but sells mindfulness workbooks (taxable).
A dentist performs check-ups (GST-free) and teeth whitening (taxable).
A clinic sells Chinese herbs (taxable) alongside GST-free treatments.
Keeping everything organised ensures compliance and smooth BAS reporting.
Do I Need to Register for GST If My Services Are GST-Free?
Even if most of what you do is GST-free, you’ll need to register if your annual turnover is $75,000+ ($150,000 for non-profits). The upside? Once registered, you can claim GST credits on taxable expenses, this can sometimes lead to a refund!
Pro Tips for Staying on Top of GST
Managing GST doesn’t have to be a headache. Follow these tips to keep things running smoothly:
Use Accounting Software: Platforms like Xero or MYOB make tracking GST-free and taxable items a breeze.
Label Invoices Clearly: Show whether charges are GST-free or taxable.
Keep Accurate Records: It’s the easiest way to stay compliant and avoid mistakes.
Consult a Pro: If you’re unsure about GST rules, a BAS agent or tax professional can help.
Final Thoughts
Navigating GST as a medical professional might feel tricky, but with the right tools and knowledge, you can handle it confidently. Whether you’re running a clinic or working solo, staying on top of GST ensures your business stays compliant while you focus on delivering excellent patient care.
Got questions or need help with GST and BAS? I’m here to help. Reach out or check out my full GST guide for medical professionals.
