Is TAC treatment GST free?

For treatment, yes, where the same session would be GST free supplied to the patient. The scheme is a compensation scheme operator, which is one of the four payers s38-60 names, so the treatment keeps the status it would have had privately. A report the scheme commissions is a separate supply and is taxable unless a Medicare benefit is payable for it or it is a natural part of the GST free service.

Is a payment from a CTP insurer GST free?

The same answer, by the same route. An insurer is the first of the four payers listed, so a session that is GST free to the patient stays GST free when the compulsory third party insurer carrying the claim pays for it. Where the insurer is only reimbursing a person who already paid the practice, the supply was to the patient in the first place and the rate is unchanged.

What services are GST free?

For a practice billing a motor accident scheme, the test is unchanged from any other patient. A medical service is GST free, and a health service that is not a medical service is GST free where it is one of the listed health services, performed by a recognised professional in that service, and generally accepted in that profession as necessary for appropriate treatment. A service that is similar to a listed one does not qualify.

Do I show GST on an invoice to a CTP insurer?

State the position on the invoice rather than leaving it to the payer. The New South Wales regulator's provider guidance asks for the person's name, the date of the crash, the insurer's claim number, and the practice's business number, address and GST if applicable, which is guidance the corpus holds as unverified. A GST free treatment line carries no GST, and a taxable line on the same claim is shown separately.

Is a report for a motor accident claim GST free?

Usually not. The ATO's own worked example is an examination and report on a driver's injuries obtained for compensation litigation, and it is taxable because no Medicare benefit is payable for the report and it is not a natural part of a GST free service. Whether a progress note that is genuinely part of the treatment reads the same way is not settled for allied health, so it sits in this page's open questions.

Are medical supplies exempt from GST?

Goods follow their own rule and do not ride along with a GST free session. The ATO treats goods as GST free only where they are a necessary part of the health service and supplied at the same time and place as it, and its own example is that the extra dressings a patient takes home are not. That is why the allied health template defaults its products account to the taxable rate and leaves an item override for the medical aids that qualify on their own.

GST answers

GST on CTP and TAC treatment

Yes, for treatment. A session paid by the Transport Accident Commission or a CTP insurer is GST free where it would be GST free supplied to the patient, because a compensation scheme operator is one of the four payers s38-60 names. A report the scheme asks for is a separate supply, and taxable unless a Medicare benefit is payable for it or it is a natural part of the treatment.

Key facts

The rule the answer runs on: s38-60, third party procured GST-free health supplies, in Subdivision 38-B of the GST Act, in the compilation current from 1 January 2026⁷
The four payers it names: An insurer, an operator of a statutory compensation scheme, a compulsory third party scheme operator, and an Australian Government agency²
What the rule actually does: It borrows the answer. A service that is GST free supplied to the patient stays GST free when the practice contracts with one of those four²
Any other payer: Medical and other health services supplied to a third party outside those four categories are not GST free²
Where a scheme merely pays the account: The supply stays with the patient and is GST free if it meets the medical or other health service definition, so the rate is the same by a different route²
The exception on the same claim: A report for injury compensation litigation is taxable where no Medicare benefit is payable for it and it is not a natural part of a GST free service³
Where the allied health template posts a motor accident session: Account 408, Clinical services, CTP and TAC, at the GST Free Income tax rate⁸
Where the psychology template posts it: Account 406, the same account name on a different code, at the same tax rate⁸
An agreement the parties can make: A supplier and a scheme operator can agree not to treat the supplies as GST free, which is worth settling before a standing map is approved²

What the scheme changes, and what it does not

Search this question and the results answer a different one: the general health list, the complementary therapies question, and one fee schedule notice. None of them says what a practice needs on the day. A person was hurt in a car crash, the scheme is paying, and the invoice line has to carry a tax rate.

The scheme paying changes who the debtor is. It does not change what the practice supplied. That is the whole shape of the answer, and it is why a motor accident session lands on the same rate a private session would have carried, while a report about the crash does not.

The four payers the rule names

The ATO's page on services supplied through a third party sets out arrangements where the service for a patient is organised and paid for by someone else. Where the practice is contracting with one of four kinds of payer, a service that would be GST free to the patient is GST free to that payer as well. The four are stated as a closed set.

An insurer.
An operator of a statutory compensation scheme.
A compulsory third party scheme, meaning the scheme operator.
An Australian Government agency.

Motor accident treatment sits in the middle two limbs, and often in the first as well, depending on which state the crash happened in and who carries the claim. The same page closes the door on everyone else: health services supplied to a third party outside those four are not GST free. An employer, a law firm or a fleet operator asking for the same session is a taxable supply, whatever the clinical content.

Which limb a motor accident body sits in

The four payers the ATO lists, how a motor accident claim reaches each one, and what the limb decides²⁸

The payer	How a motor accident claim reaches it	What turns on the limb
An insurer	A licensed insurer that wrote the compulsory third party policy on the vehicle and now carries the claim	Nothing for the rate. It decides which party any agreement not to treat the supplies as GST free would be made with
An operator of a statutory compensation scheme	A state scheme that funds treatment for accident injuries under its own act rather than under a policy sold to a driver	Nothing for the rate. It is the limb a single state wide payer sits in
A compulsory third party scheme operator	The body running the compulsory third party arrangements a state's vehicle registration pays for	Nothing for the rate. It is the limb the canonical allied health template names for this key
An Australian Government agency	The limb a government agency buying health services for individuals sits in. A state statutory authority can answer to this description as well as to a scheme limb	Nothing for the rate. A payer can sit in more than one limb, and the limb only names the counterparty to an agreement under s38-60

Placing a particular body in a particular limb is a reading of that scheme's own act, and the ATO page does not do it scheme by scheme. The ATO's own worked example calls a state sports institute an Australian Government agency, so the phrase reads wider than it sounds and a state statutory authority can answer to more than one limb. For a treatment line it does not matter, because all four limbs reach the same rate. It matters for the agreement, which is made with a named counterparty, and it is the reason the question sits in the open questions below rather than in a key fact.

When the person pays you and claims it back

Not every motor accident session is billed to the scheme. Some are paid at the desk and reimbursed to the person later, and a practice can have both in the same week for the same injury.

Where the scheme is only settling the person's account rather than engaging the practice, nothing has to be borrowed. The recipient of the supply is whoever engages the practitioner, so the supply is to the patient and it is GST free if it meets the health service definition on its own. The rate is the same. What differs is which document the practice is holding when a reviewer asks why.

The rule borrows an answer, it does not create one

This is the part the general results skip. Because the answer is borrowed from the supply to the patient, a service that would have been taxable privately is taxable when a scheme pays for it. For a health service that is not a medical service, three things have to hold at once.

It is one of the listed health services, and the ATO is strict that a service has to be one of them rather than similar to one of them.
It is performed by a recognised health professional in that listed service, or in defined circumstances by their assistant.
It is generally accepted in that profession as necessary for the appropriate treatment of the recipient of the supply.

A practice treating whiplash may deliver physiotherapy on Monday and remedial massage on Tuesday, and the scheme may fund both. Only one of them is on the list. Massage therapy and exercise physiology take those two cases in full, and the shape of the error is the same either way: coding every line GST free because health is GST free.

The ATO's own car accident example is a report

The clearest published example on this question happens to be a motor accident, and it is the taxable one. A law firm acting for an injured driver sends him to his general practitioner for an examination and a report on the extent of his injuries.

The examination and report by Dr Cliffe are not GST-free because both: a Medicare benefit is not payable; the report is not a natural part of any GST-free medical service that Dr Cliffe supplies to Jason.³

The treatment on the same claim keeps its own status. So one motor accident matter can produce a GST free session line and a taxable assessment line in the same month, and the practice has to be able to raise both. Reports to insurers works through the recipient test for a compensation report, and reports and medico-legal work covers the rest of the category.

What the canonical templates post

The templates carry the conclusion as a posting rather than as prose, and they do not agree on where it goes. Two of the three name a motor accident revenue account of their own, on different codes and with the same account name. The third has no such row and reaches its practice default instead, at the same tax rate.

Plate 1Motor accident revenue as each canonical template posts it, side by side rather than merged into one code.

The allied health template's account 408 gives the reason in one line: a compulsory third party scheme operator is one of the four categories the section lists. The same account carries an instruction for the practice's BAS agent, which this page prints rather than answers. Confirm no opt out, and treat the scheme's payment timing as unverified until the practice's own deposits have been watched.

No template gives CTP or TAC a report row

The allied health template spells out a report row for workers compensation: that funding source with a report category posts to account 420, Reports, assessments and medico-legal, at the taxable rate. It spells out no equivalent row for motor accident work. Neither do the other two templates.

What a scheme publishes about GST

The Victorian scheme publishes a GST statement alongside its fee schedules, and it is the only document on the first page of search for this query that a motor accident scheme published. Its recorded wording marks listed items as supplies the scheme believes to be GST free, and says that where the scheme believes an item is taxable the published rate carries a 10 percent allowance for GST. The page refused an automated fetch on 3 Sep 2026, so that rests on the recorded search result rather than the statement read in full.

Read it for what it is. A scheme stating what it believes about an item tells the practice how the fee was built, which is worth knowing before an invoice is raised at a rate the scheme will not pay. It is not a ruling. The New South Wales regulator's guidance for providers goes the other way and asks the practice to state the position, listing the person's name, the date of the crash, the insurer's claim number, the practice's business number and address, and GST if applicable.

The rate belongs to the revenue leg

Everything above is about one leg of the deposit: the revenue line, which is where the GST Free Income rate sits and where the activity statement reads it. The settlement leg is a separate posting. Every clearing component in every canonical template is posted outside the activity statement, because the money it holds was already earned and already reported when the invoice was raised.

Keeping the two apart is what stops a scheme payment being posted at a revenue rate, which is the error that turns one deposit into a week of chasing. The payment run itself, the remittance and the lag belong to TAC and CTP payments in Xero, and the workers compensation version of the same treatment question is WorkCover treatment.

What Ledger Map does with it

Ledger Map holds one standing map for the practice, approved by the practice before anything syncs. A motor accident line resolves to its account and its tax rate through that map, so a treatment item and a report item on the same claim can carry different rates without anyone remembering to change one by hand.

The scheme payment is then posted as one balanced document set, which leaves one exact match in the bank feed for a person to accept. A line the map cannot place becomes a question with the options laid out, and the practice answers it once. How it works shows the map and the approval step, and the other GST answers carry the same treatment record for every funder in the mix.

Questions

Is TAC treatment GST free?
For treatment, yes, where the same session would be GST free supplied to the patient. The scheme is a compensation scheme operator, which is one of the four payers s38-60 names, so the treatment keeps the status it would have had privately. A report the scheme commissions is a separate supply and is taxable unless a Medicare benefit is payable for it or it is a natural part of the GST free service.
Is a payment from a CTP insurer GST free?
The same answer, by the same route. An insurer is the first of the four payers listed, so a session that is GST free to the patient stays GST free when the compulsory third party insurer carrying the claim pays for it. Where the insurer is only reimbursing a person who already paid the practice, the supply was to the patient in the first place and the rate is unchanged.
What services are GST free?
For a practice billing a motor accident scheme, the test is unchanged from any other patient. A medical service is GST free, and a health service that is not a medical service is GST free where it is one of the listed health services, performed by a recognised professional in that service, and generally accepted in that profession as necessary for appropriate treatment. A service that is similar to a listed one does not qualify.
Do I show GST on an invoice to a CTP insurer?
State the position on the invoice rather than leaving it to the payer. The New South Wales regulator's provider guidance asks for the person's name, the date of the crash, the insurer's claim number, and the practice's business number, address and GST if applicable, which is guidance the corpus holds as unverified. A GST free treatment line carries no GST, and a taxable line on the same claim is shown separately.
Is a report for a motor accident claim GST free?
Usually not. The ATO's own worked example is an examination and report on a driver's injuries obtained for compensation litigation, and it is taxable because no Medicare benefit is payable for the report and it is not a natural part of a GST free service. Whether a progress note that is genuinely part of the treatment reads the same way is not settled for allied health, so it sits in this page's open questions.
Are medical supplies exempt from GST?
Goods follow their own rule and do not ride along with a GST free session. The ATO treats goods as GST free only where they are a necessary part of the health service and supplied at the same time and place as it, and its own example is that the extra dressings a patient takes home are not. That is why the allied health template defaults its products account to the taxable rate and leaves an item override for the medical aids that qualify on their own.

Sources

Open questions

The operative text of s38-60 was not read. The Federal Register returned the subdivision table of contents on 3 Sep 2026 and confirmed the compilation current from 1 January 2026, so the section is cited for its title, location and currency while the test itself is carried by the ATO page.
Which of the four payers a given motor accident body sits in is this page's reading of that scheme's own act rather than an assignment the ATO page makes. Every limb reaches the same rate for treatment, so the posting does not turn on it, but the agreement not to treat supplies as GST free is made with a named counterparty.
Whether any motor accident scheme has agreed with providers not to treat the supplies as GST free. The ATO says the parties can agree, and no published example was found for this page, so a practice's own arrangements are the answer.
The Victorian scheme's GST statement was not read in full. The page returned 403 on 3 Sep 2026, so its wording is taken from the recorded search result and is cited unverified.
The New South Wales regulator's provider page also returned 403 on 3 Sep 2026, so the invoice content list is held as unverified, and whether the regulator sets any allied health fee for treatment under the scheme was not established either way.
Whether a progress report to a treating practitioner during a compensation claim is an ordinary and natural part of the treatment. The ATO gives an example each way for medical practitioners and none for allied health.
Whether lodging through a claiming platform changes who engaged the practice. Nothing read for this page addresses it, and the recipient of the supply is the question the treatment turns on.

Invoicing for CTP treatment services
State Insurance Regulatory Authority NSW. Retrieved 2 Sep 2026.
unverified
GST and health, supply of services through a third party
Australian Taxation Office. Retrieved 3 Sep 2026. Source updated 12 Jun 2024.
primary
GST and health, medical services
Australian Taxation Office. Retrieved 3 Sep 2026. Source updated 12 Jun 2024.
primary
GST and health, other health services
Australian Taxation Office. Retrieved 3 Sep 2026. Source updated 12 Jun 2024.
primary
GST and health, recipient of the supply
Australian Taxation Office. Retrieved 3 Sep 2026. Source updated 12 Jun 2024.
primary
GST and health, goods supplied as part of a GST-free health service
Australian Taxation Office. Retrieved 3 Sep 2026. Source updated 12 Jun 2024.
primary
A New Tax System (Goods and Services Tax) Act 1999, section 38-60, third party procured GST-free health supplies
Federal Register of Legislation. Retrieved 3 Sep 2026. Source updated 1 Jan 2026.
primary
Allied health, psychology and NDIS plan managed canonical templates
Ledger Map. Retrieved 3 Sep 2026.
primary
GST statement published with the fee schedules
Transport Accident Commission. Retrieved 3 Sep 2026.
unverified

Review

Last reviewed 3 Sep 2026 by Shane

General information for Australian allied health practices, not tax advice. Confirm a treatment with your BAS agent or accountant before you post it.

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