It’s time to junk the unnecessary GST on exercise physiology 

22 August 2024

If you can make bacon, cupcake mix and frozen chips exempt from GST, you can do the same for accredited exercise physiologists.

That's the bold challenge Australia’s leading voice on exercise and sports science has levelled at the federal government amid the nation’s worsening obesity epidemic.

While two-thirds of Australians are overweight or obese, exercise physiology – which is highly effective at reversing unhealthy weight conditions – still attracts GST, making it more costly for the public to access amid a cost-of-living crisis.

But Exercise & Sports Science Australia (ESSA) is reigniting its decade-long advocacy efforts for it to join the ranks of health services that are already GST free, including physiotherapy, dental, dietary, acupuncture, herbal medicine and naturopathy. 

This week, ESSA representatives including brand ambassador and Olympic Gold Medallist Duncan Armstrong OAM OLY will meet with federal government, opposition and crossbench MPs to discuss what they see as a long-overdue health reform. To achieve this reform, Federal Treasurer Jim Chalmers simply needs to add exercise physiology to the list of GST exempt health services.

Mr Armstrong said it was staggering that exercise physiology was still subject to GST.

“While foods like bacon, cake frosting, frozen chips and artificial sweeteners are exempt from GST, exercise physiology services continue to attract the levy,” he said.

“In a day and age where governments are focused on promoting well-being, it makes absolutely no sense that foods which are known to negatively impact healthy habits don’t attract GST, while a science that can support healthy living gets slugged.

“And, when you consider the cost of unhealthy lifestyles on governments and taxpayers, there’s a clear mandate for change and one that has already received support from state and territory treasurers.

When the GST was introduced in 1999, exercise physiology was an emerging science and was not included in the list of exempt health services.

However, in 2006, exercise physiology services were recognised as allied health services under the Medicare Benefits Scheme, thus meeting all of the requirements for GST exemption in the legislation. In 2021, state and territory treasurers unanimously agreed to endorse a proposal to make exercise physiology exempt from GST, however progress has stalled.

With the GST exemption already applying to comparable allied health professions, such as osteopathy and physiotherapy, Mr Armstrong said it was well and truly time to do the same for exercise physiologists.

“Two in every three Australians are either overweight or obese, which places an unsustainable burden on our already struggling health system,” he said.

“Exercise physiology is highly effective in reversing unhealthy weight conditions, and is also a proven health treatment to prevent, manage and even reverse a broad range of other chronic conditions including diabetes, cancer, cardiovascular diseases, and mental health.

“It’s time for the federal government to make exercise physiology GST free to make it more affordable for all Australians to allow for the best possible health and well-being outcomes."

Specifically, ESSA is seeking an amendment to section 38-10 of the A New Tax System (Goods and Services Tax) Act 1999 to make exercise physiology exempt from GST.