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Hi all,

I am just after some help around Billing for Aged Care Facilities.

It is my understanding that Low Care residents are able to be billed privately, Medicare or DVA as per a stand in clinic consultations.

However High Care residents are funded by the age care facility themself? Due to the fact we are billing a third party do we add GST ? This is not consistent with third party billing (Medicare / DVA / Workcover) that do not have GST added to the Consultstion fee?

Cheers,

 

No. It is my understanding that as you are still essentially billing for a medical service, the GST is exempt even though you are sending the facility an account for the high care residents.

 

Unfortunately cannot provide info on the GST exemption however can inform you that the low care and high care has now been removed. If a resident is assessed that is at the stage that needs this care then facility will have to provide it. However residents do have the choice of using the Medicare CDM if they fit the criteria then you will bill the patient. If the resident does not choose to use the CDM then the facility has to provide this service as stated in the specified care and services.

https://www.dss.gov.au/our-responsi...ion-in-permanent-residential-aged-care-from-1

https://www.comlaw.gov.au/Details/F2015C00075/Html/Text#_Toc409692212

 

GST is payable for your High Risk patients if you are billing a third party as in effect you are providing a contract type service. No GST for Medicare or Low Risk Patients who pay themselves.

 

Mmm this is interesting, my accountant has spent a considerable time sorting through this and is confident GST does not need to be charged despite the third party situation.

 

From the ATO website:

"From 1 July 2012, where a supply of a medical service made to an individual is GST-free, that supply will also be GST-free where the recipient of the supply is an:
- insurer in settling a claim under an insurance policy
- operator of a statutory compensation scheme
- operator of a compulsory third party scheme
- Australian government agency"

What if the service is not provided to an insurer, scheme operator or government agency?

Where a third party other than an insurer, a scheme operator or an Australian government agency is the recipient of the supply of a health practitioner's services, the health service will not be GST-free."

 

Thanks Scott

I have been doing some work for QLD health as a contractor and have been told to add GST, this actually states i shouldn't. I am guessing QLD is classed as a government agency?

 

Although I think you would be correct, it would be good for you to confirm this with them