GST for preschool operators

Curriculum-related activities

Curriculum-related activities or instruction have a direct relationship to the education course and are generally provided by someone other than the preschool, such as an independent contractor.

If you purchase taxable supplies from a service provider and you are registered for GST, you are entitled to claim a GST credit for the GST you pay. In turn, you do not include GST in the price of these supplies to your students as the supplies are GST-free as part of an education course.

If your students pay fees directly to a service provider, the supply by the service provider is not GST-free as part of an education course.

Example

A preschool operator contracts for a petting zoo to visit the preschool. The zoo charges $5.50 per student (including GST) for 20 students.

If the preschool pays the zoo directly, it will pay $110 (including $10 GST). The preschool can then claim a GST credit of $10 on its next activity statement, reducing the total cost to $100.

If the zoo is not contracted by the preschool but visits the preschool and each student pays $5.50 to the zoo directly, the preschool will not be able to claim a GST credit.

Not all supplies made by service providers are curriculum related and, therefore, they may not be GST-free. Such supplies include:

• the sale of class photographs
• recreational activities such as excursions to amusement venues.

Food provided to students whilst attending a preschool course or during an excursion is not GST-free as part of the education course or the excursion; however, the food may be GST-free for other reasons. For more information, see GST food guide (NAT 3338).

Sections within Accounting for GST on goods or services you provide or receive

• Preschool course related supplies
• Curriculum-related activities
• Maintenance and fundraising levies
• Grants
• Donations/gifts
• Co-payments made by parents and government
• Preschool child care services
• Non-profit child care services