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Q: If you are an NDIS participant, should GST-registered suppliers be charging you GST?

A: It depends what supports they are supplying to you. Some types of supplies are GST-free; others are not. Many (but not all) services provided to support NDIS participants are GST-free.

Note: a supplier that is not GST-registered cannot charge GST in any case.

When suppliers should not charge GST to an NDIS participant

Some services and supply items are GST-free when being provided to an NDIS participant, as explained in A New Tax System (Goods and Services Tax) (GST free Supply—National Disability Insurance Scheme Supports) Determination 2021, as per subsection 177 10(5) of the A New Tax System (Goods and Services Tax) Act 1999). This determination applies to certain supply items provided to NDIS participants.

You can read more here: ATO – GST-free NDIS supplies.

When suppliers should charge GST to an NDIS participant

Some supplies are not GST-free because they are covered by determinations other than determination 2021 (in A New Tax System (Goods and Services Tax) (GST free Supply—National Disability Insurance Scheme Supports) Determination 2021, as per subsection 177 10(5) of the A New Tax System (Goods and Services Tax) Act 1999).

If the services/supply being provided is not covered by this determination, and the provider is GST-registered, the provider needs to charge you GST.

The above is a guide only.

For further information enquire directly to the Australian Tax Office or to NDIS.

Image:  Copyright SW Kane.