David Pocock calls for GST on exercise physiology to be scrapped as 25,000 Australians back petition in Canberra
Calls have erupted for the government to scrap a tax affecting a million Aussies, amid claims it could save the system $940 million over three years.
David Pocock has called on the government to scrap the tax on exercise physiology, the only Medicare allied health service subject to GST despite being accessed by more than one million Australians.
The Canberra senator will on Tuesday table a petition signed by more than 25,000 Australians calling for the government to axe GST on the service.
Unlike physiotherapists, who typically focus on acute injuries, exercise physiologists treat people with a range of conditions, including heart disease, Type 2 diabetes, and osteoporosis, as well as people recovering from injuries such as fractures and sports injuries.
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“Exercise physiologists play an important role in the ACT and in Australia, helping people of all ages stay healthy, manage serious health conditions and avoid hospital,” Senator Pocock said.
“There is no good reason for this essential health service to be treated differently from other allied health services under our GST laws.”
An estimated 1.1 million people are treated annually by exercise physiologists – up to 88,000 of which were from Australia’s most disadvantaged communities, according to modelling by Exercise and Sports Science Australia (ESSA).
It is those communities who would received 64.5 per cent of the gain from removing the “unfair” tax on exercise physiology, the ESSA said.
“People on lower incomes carry a higher burden of chronic disease yet are significantly more likely to forgo or postpone care due to cost,” ESSA chief executive Katie Lyndon said.
“Australians who see an exercise physiologist are often vulnerable people managing serious conditions such as diabetes, cancer, chronic pain, disabilities or age-related mobility issues.
“To be charging 10 per cent GST on a service that keeps these people out of hospital makes absolutely no sense.”
An ESSA analysis, conducted by Deloitte, found prescribed exercise helped to avoid almost 100,000 hospitalisations and ED presentations every three years.
In total, the health system could save up to $940m over three years, according to the study.
GST legislation has not been updated since 2019, when the government scrapped GST on feminine hygiene products.
The office of Health Minister Mark Butler referred questions to Treasury, which was contacted for comment.
Originally published as Senator David Pocock demands federal government scrap GST on exercise physiology services
