• Education courses and associated supplies

    A preschool course includes programs for the development and education of children in the years before they start primary school. Preschool programs operate with a curriculum model approved by the relevant state or territory authority. A preschool course is considered an education course for GST purposes.

    Preschool courses do not include programs without a formal curriculum such as playgroups. Playgroups may fall under GST-free child care (for more information, see Preschool child care services).

    You need to know how GST applies to preschool courses and how to divide fees into GST-free and taxable parts.

    GST and preschool courses

    Most education courses are GST-free, that is, you do not include GST in the price of education courses you supply.

    If you have purchased or imported any goods or services to supply a course, you can claim GST credits for the GST you have paid.

    A preschool course is GST-free if all of the following apply:

    • the course is delivered in accordance with a preschool curriculum recognised by either
      • the Department of Human Services in Victoria
      • the Department of Community Services in New South Wales
      • the relevant education authority in all other states and territories
    • the course is delivered by a school that is recognised as a preschool under the relevant state or territory law.

    Supply of a preschool course

    The supply of a preschool course includes:

    • tuition - the teaching or instruction of students
    • access to facilities - including the provision and maintenance of buildings, grounds, libraries, as well as the provision of educational aids, sporting and musical equipment, classroom computers, printers, etc (the supply is only GST-free if you provide access to these goods - if you sell the goods to your students, the supply may be taxable)
    • other curriculum-related activities and instruction associated with such a course - including excursions or visits by various groups.

    Any fees charged for these supplies are not subject to GST.

    Find out more

    GSTR 2000/30External Link Goods and service tax: supplies that are GST-free for pre-school, primary and secondary education courses

    End of find out more

    Dividing fees into GST-free and taxable parts

    If you charge a single fee for supplies that are both taxable and GST-free, for accounting and reporting purposes the fee must be divided between the GST-free and taxable parts of the supply.

    You must work out what part of the fee relates to the taxable supply and what part relates to the GST-free supply.


    A preschool charges a total fee of $1,100 for a preschool course. The course includes teaching the student to play the recorder and includes the supply of a recorder to the student. The recorder is priced at $33 and becomes the student's property.

    The preschool must divide the fee to account for $33 as the price of the taxable supply of the recorder and $1,067 as the price of the GST-free supply of the course. To do this, the preschool will report $1,100 at G1 (total supplies including GST-free supplies) and $1,067 at G3 (GST-free supplies) on its activity statement.

    End of example
      Last modified: 23 May 2014QC 17807