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Where appropriate, individual issues in this issues register include a reference to a public ruling which is related to the relevant issue. In some cases, the issue is itself labelled as a public ruling for the purposes of section 105-60 of Schedule 1 to the Taxation Administration Act 1953. Where an issue in this issue register simply sets out the way the law applies, rather than dealing substantially with a question of legal interpretation, we have added to the item the description 'non-interpretative'.
From 1 July 2010, issues labelled as a public ruling in this register will continue to be a public ruling even though section 105-60 of Schedule 1 of the Taxation Administration Act 1953 has been repealed.
A public ruling is an expression of the Commissioner's opinion about the way in which a relevant provision applies, or would apply, to entities generally or to a class of entities in relation to a particular scheme or a class of schemes.
If you rely on issues in this register that are a ruling, we must apply the law to you in the way set out in the ruling. However, if we are satisfied that the ruling is incorrect and disadvantages you, we may apply the law in a way that is more favourable for you - provided we are not prevented from doing so by a time limit imposed by the law. You will be protected from having to pay any underpaid tax, penalty or interest in respect of the matters covered by this ruling if it turns out that it does not correctly state how the relevant provision applies to you.
Issues in this register that have not been labelled as public rulings, constitute written guidance. If you follow our information on these issues and it turns out to be incorrect, or it is misleading and you make a mistake as a result, we must still apply the law correctly. If that means you owe us money, we must ask you to pay it but we will not charge you a penalty. Also, if you acted reasonably and in good faith we will not charge you interest. If correcting the mistake means we owe you money, we will pay it to you. We will also pay you any interest you are entitled to.
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Q: What kind of courses are not GST-free?
Non-interpretative - straight application of the law.
A: Courses which are not considered to be education courses are:
- hobby, personal development or recreational courses (see paragraphs 34 to 36 of GSTR 2000/27)
- continuing professional development courses to maintain membership of a professional body (see paragraph 98 of GSTR 2003/1)
- short occupational courses to maintain skills, and
- a course for a qualification which may be required by a particular employer or group of employers, for example, a motor car drivers licence for a courier.
Q: If I attend a seminar on GST presented by an accounting firm, will that seminar be supplied GST-free?
Non-interpretative - straight application of the law.
A: No. The supply is not an education course and the price of attending will include GST. If you are attending so that you can understand your GST obligations associated with carrying on your enterprise you would be entitled to an input tax credit for the GST included in the price.
Q: I need my drivers licence. It is needed for me to be employed in a job. Are the driving lessons GST-free?
Non-interpretative.
A: No. The mere fact that a qualification is needed to do a job does not make that supply GST-free. For example, a drivers licence is a requirement for a number of jobs, as is not a pre-requisite for that particular occupation (see paragraph 20 of GSTR 2003/1).
However if you were attending a course to obtain your heavy vehicle licence in order to become a long distance truck driver, this may be GST-free if the course falls within the definition of an education course (see paragraph 53 of GSTR 2003/1).
Q: I need to undertake an apprenticeship to enable me to gain a certificate to be a mechanic, is that course GST-free?
Non-interpretative - straight application of the law.
A: Yes. It is a professional or trade course which is an essential pre-requisite for employment in that trade.
Q: Do I charge GST on the accommodation component of school group excursions?
Non-interpretative - straight application of the law.
A: If you supply to students excursions or field trips that are directly related to your curriculum and are not predominantly recreational in nature, the supply is GST-free, except for any food component.
You make a supply of an excursion or field trip where you coordinate the various elements of the excursion or field trip for the students. These elements include transport, accommodation, entry fees, etc. You are entitled to an input tax credit for any GST included in the price charged to you by the providers on these various elements. You work out the charge of the excursion or field trip to each student. Where it is directly related to your curriculum and not predominantly recreational in nature the supply of the excursion or field trip to the student is GST-free, except for any food component.
In relation to the accommodation, if the provider is registered or required to be registered, the provider will include GST in the total price of the accommodation regardless of whether the charge is made to you or to the individual students directly.
Q: Is the sale of textbooks and the hire of musical instruments by a registered school for children to undertake an education course GST-free?
Non-interpretative - other references (see paragraphs 70 to 98 of GSTR 2000/30 - Goods and services tax: supplies that are GST-free for pre-school, primary and secondary education courses.
A: No. If the goods are supplied by way of sale, lease or hire to students, they are not GST-free. The only exceptions are materials provided by the school that are necessarily consumed or transformed by the students undertaking the course for the purposes of the course. This would include photocopied educational materials, art supplies and ingredients used in a cooking class.
Basis of decision:
Sections 38-95, 38-100 and 195-1 of A New Tax System (Goods and Services Tax) Act 1999, and Explanatory Memorandum to the Act at 5.52 to 5.56.
Q: I run a swimming complex and I provide swimming lessons for the local school. Is the supply of these swimming lessons GST-free?
Non-interpretative - straight application of the law.
A: If you are supplying swimming lessons to the local school you are not providing an education course as defined by the GST legislation. Therefore the lessons that you (the swimming pool operator) are charging for are taxable supplies and subject to GST.
The school will be entitled to claim input tax credits for the lessons.
Provided the school supplies the lessons to the students as part of an education course, the supply by the school will be GST-free.
The fact that a school supplies a GST-free education course, does not mean that all the supplies made to the school are GST-free.
However, you may supply a first aid or life saving course GST-free if you are a registered training organisation (RTO) that is approved by the relevant State or Territory authority to provide such courses.
A first aid or life saving course is one that principally trains an individual first aid, resuscitation or other similar life saving skills including personal aquatic survival skills, but not including swimming lessons.
Last Modified: Thursday, 12 May 2011