Invoicing for Medical & Allied Health Providers

GST-free health services

Most medical and allied health services in Australia are GST-free under Division 38-B of the A New Tax System (Goods and Services Tax) Act 1999. This means you do not charge GST on the service and the patient does not pay GST. GST-free health services include:

Services by a GP or medical specialist
Dental services (diagnostic and treatment)
Physiotherapy, chiropractic, and osteopathy
Psychology and counselling (by registered practitioners)
Occupational therapy and speech therapy
Optometry
Nursing and midwifery services
Podiatry and dietetics

For the full list and conditions, see the ATO health industry guide.

When a medical service IS taxable

Not all health-related services are GST-free. Services that are generally taxable at 10% GST include:

Cosmetic procedures that are not medically necessary (e.g. Botox for cosmetic purposes, cosmetic surgery)
Services provided by practitioners who are not registered under the applicable registration regime
Some allied health services not covered by Division 38-B (always check with your accountant)
Gym memberships and personal training sold by a health business
Sale of health products (e.g. supplements, orthotics, equipment) — these are separate taxable supplies

If you are unsure whether a specific service is GST-free, seek advice from a tax professional or refer to the ATO: GST and health.

Private billing invoices for GST-free services

Even though most health services are GST-free, you should still issue a proper invoice (or receipt) for every private billing transaction. A good private billing invoice for a GST-free service includes:

Your practice name and ABN
Your provider number (for Medicare and health fund billing)
The patient's name and date of birth
Date of service
Item or service code (where applicable)
Description of the service
Fee charged (with a note that the supply is GST-free, i.e. GST: $0.00)

Use our free invoice generator to create a professional invoice — simply leave the GST line at $0 or describe the supply as GST-free.

Medicare: bulk-billing vs private billing

Bulk billing: You accept the Medicare benefit as full payment. The patient does not pay a gap. You assign the Medicare benefit to yourself and claim directly from Medicare. No invoice to the patient is required, but you must maintain records of the service.
Private billing: You charge a fee that may exceed the Medicare benefit. The patient pays you in full (or a gap after Medicare rebate) and then claims their rebate from Medicare. Issue an itemised receipt so the patient can claim. Include the Medicare item number on the receipt.

NDIS invoicing

If you are a registered NDIS provider, your invoicing must comply with the NDIS Commission's requirements:

Use the current NDIS Support Catalogue item codes and price limits
Include your registration number, the participant's NDIS number, support item code, date of service, quantity and unit price
Submit claims through the NDIS myplace portal (for agency-managed participants)
For plan-managed or self-managed participants, send your invoice to the plan manager or participant directly
NDIS services provided by allied health professionals are generally GST-free

Itemised invoices for health insurer claims

For extras or ancillary claims, your patient's private health insurer will typically require an itemised receipt or invoice. Requirements vary by fund, but generally include your provider name, provider number, HIC number (if applicable), date of service, item code, description, and fee. Contact each fund for their specific requirements.

Record retention for health providers

The ATO requires records to be kept for at least 5 years. However, your registration standards under AHPRA or the relevant professional board may require longer retention of clinical records (commonly 7 years for adults, and until age 25 for patients who were minors). Keep your financial invoicing records and clinical records separately and in accordance with both sets of obligations.

Frequently asked questions

Is my medical service GST-free?

Most medical services provided by a registered medical practitioner are GST-free under Division 38-B of the A New Tax System (Goods and Services Tax) Act 1999. This includes services by GPs, specialists, dentists, physiotherapists, chiropractors, psychologists, optometrists and other registered health professionals. However, cosmetic services that are not medically necessary are generally taxable. See the ATO's health profession guide for a comprehensive list.

Do I still need to issue a tax invoice for GST-free services?

Not exactly — if your supply is GST-free, you do not need to issue a 'tax invoice' in the strict sense. However, if the patient or their insurer needs a receipt for claiming purposes, you should issue an itemised receipt or invoice that includes your ABN, business name, date, description of the service, and the total amount (with a note that the supply is GST-free, i.e. $0 GST). The document is technically a 'invoice' rather than a 'tax invoice', but including your ABN is still important.

What does NDIS invoicing require?

NDIS service providers must invoice using the NDIS price guide item codes and price limits set by the NDIA. Your invoice must include your provider registration number (for registered providers), the participant's NDIS number, the support item code, the date of service, quantity and the unit price. For registered providers, claims are lodged through the NDIS myplace portal rather than sending an invoice to the participant. For unregistered providers, invoice the plan manager or self-managed participant directly. Refer to the NDIA website for current price guides.

How do I invoice a health fund for private extras claims?

Most private health insurers require an itemised invoice or receipt that includes: the provider's name and provider number, the patient's name and membership number, date of service, item code (as listed in the provider's agreement with the fund), description of the service, and the fee charged. Contact your health fund directly for their specific invoicing requirements.