Part 13 - Education, education materials, training and childcare
Issue 1: What affect will the introduction of GST have upon supplies of education, training and childcare?
Non-interpretative – straight application of the law
Division 38 in the GST Act sets out the supplies that are GST-free. If a supply is GST-free then:
- no GST is payable on the supply, and
- an entitlement to an input tax credit for anything acquired or imported to make the supply is not affected.
The supply of an education course is a GST-free supply. The ATO has issued Goods and Services Tax Ruling GSTR 2000/30External Link on pre-school, primary and secondary education courses and Goods and Services Tax Ruling GSTR 2001/1External Link on tertiary education courses. Also, a final ruling, GSTR 2000/27External Link, on the meaning of 'likely to add to employment skills' as it applies to adult and community education courses has been issued by the ATO.