Changes to health provider GST registration requirements – Recipient Created Tax Invoice (RCTI) and backdating of GST amounts

Recipient Created Tax Invoice (RCTI) registration

The Department of Veterans’ Affairs (DVA) has released an updated Recipient Created Tax Invoice (RCTI) form and updated GST processing guidance to simplify the goods and services tax (GST) registration process and GST claiming administration for health providers.

How GST applies to DVA provider payments

Like Medicare, DVA and Repatriation Pharmaceutical Benefits Schedule (RPBS) payments or services are generally GST-free. This includes the majority of DVA medical, allied and dental fees, and RPBS medicines. However, the Australian Taxation Office (ATO) has specified that GST should apply to certain payments, such as those made to pharmacies, requested reports and other health services that do not meet the relevant criteria informed by A New Tax System (Goods and Services Tax) Act 1999 (GST Act).
In these cases, the payment is considered a 'consideration for a supply' under GST law, meaning it is a payment for a service rendered to the Australian Government.

What is RCTI registration?

RCTI registration allows health providers to issue their own tax invoices for GST purposes. This eliminates the need for additional claims to be submitted separately for the GST component, as the GST amount is automatically applied to the initial payment.

If you are a health care provider who claims DVA fees for treatment services which attract GST, it’s important to ensure your GST registration status is kept up to date. Did you know: A RCTI agreement is required for each registered provider practice location.

Why is RCTI registration important for DVA health providers?

Being registered for RCTI simplifies the claims process by providing the full item fee-amount inclusive of GST upfront, improves accuracy by ensuring correct GST application and speeds up claim processing, meaning funds are received faster. It also reduces claim rejections due to missing GST status and enhances reconciliation systems for better tax reporting and compliance.

You must complete your DVA RCTI agreement before claiming, as claims for the GST component cannot be backdated or paid retrospectively. Did you know: Having an ABN does not automatically mean you are registered for GST with DVA.

A new fillable RCTI form

In response to feedback, DVA has developed a new electronically fillable RCTI form that simplifies the registration and claiming process. This form is now available online.

For more information:

• To find out if GST applies to the services you provide, please refer to the DVA Schedule of Fees relevant to your profession.
• To work out if, when and how you need to register for GST, visit the ATO website.
• For tailored technical assistance from the ATO.
• To discuss your DVA RCTI or GST status please contact the Services Australia eBusiness Service Centre via:     
  • Phone: 1800 700 199 Monday to Friday, 8 am to 5 pm local time.
  • Email: ebusiness [at] servicesaustralia.gov.au (ebusiness[at]servicesaustralia[dot]gov[dot]au) registration.
• For frequently asked questions (FAQs).
• For other queries relating to the change please contact the DVA Provider Support Section via Provider.Support [at] dva.gov.au (Provider[dot]Support[at]dva[dot]gov[dot]au).