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  • Property and Construction Industry Partnership – issues register – section 08 – group training schemes

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    (a) added, (u) updated, (w) withdrawn

    Issue Number

    Index

    Date

    8

    Group training schemes

    8.1

    What are the GST implications of group training schemes?

    09/04/2001

    Relevant Determinations

    GSTD 2000/7 'Is the supply of the services of apprentices or trainees by a Group Training Company to host employers under a Group Training Scheme a taxable supply in terms of section 9-5 of the A New Tax System (Goods and Services Tax) Act 1999?'

    8.1 What are the GST implications of group training schemes?

    For source of ATO view, refer to the general principles in GSTD 2000/7 Goods and services tax: is the supply of the services of apprentices or trainees by a Group Training Company to host employers under a Group Training Scheme a taxable supply in terms of section 9-5 of the A New Tax System (Goods and Services Tax) Act 1999?

    ATO position

    Is the supply of services by a Group Training Company (in the form of the work done by the apprentices or trainees) to a host employer under a Group Training Scheme a taxable supply under the GST Act?

    Yes, if the conditions for a taxable supply under section 9-5 of the GST Act are satisfied:

    1. a supply of services/labour in the form of apprentices or trainees, is made by a Group Training Company to a host employer
    2. there is consideration for the supply from the host employer to the Group Training Company
    3. the supply of apprentices or trainees is made in the course of the Group Training Company's enterprise
    4. the supply is connected with Australia
    5. the Group Training Company is registered, or required to be registered.

    If the elements of section 9-5 of the GST Act are satisfied then GST is payable in relation to the supply of apprentices or trainees by the Group Training Company to the host employer (section 7-1(1) of the GST Act). However, the host employer is entitled to input tax credits for GST paid for the supply of apprentices or trainees where the other requirements for a creditable acquisition are met (section 11-5 of the GST Act).

    For further guidance in this area refer to the GST Determination GSTD 2000/7.

      Last modified: 28 Jun 2010QC 16474