ATO Interpretative Decision
ATO ID 2003/1037
Goods and Services Tax
GST and adult and community education courses provided by a professional association to its membersFOI status: may be released
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This ATOID provides you with the following level of protection:
If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.
Issue
Is the entity, a not-for-profit body corporate, making a GST-free supply of an adult and community education (ACE) course under section 38-85 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it supplies a training course only open to its members?
Decision
No, the entity is not making a GST-free supply of an ACE course under section 38-85 of the GST Act when it supplies a training course only open to its members. As the course is not a course available to adults in the general community, the entity is making a taxable supply under section 9-5 of the GST Act.
Facts
The entity is a not-for-profit body corporate that is registered for goods and services tax (GST). The entity is not a gift-deductible entity. The entity is a professional association representing the interests of those engaged in a particular profession.
Membership of the association is open only to those who have a formal academic qualification and are currently, or were formerly, engaged in the practice of the particular profession. The entity supplies a training course that is only open to its members.
The supply of the course satisfies the other positive limbs of section 9-5 of the GST Act.
Reasons for Decision
The supply of an 'education course' is GST-free under section 38-85 of the GST Act. 'Education course' is defined in section 195-1 of the GST Act to include, amongst other things, an ACE course.
Section 195-1 of the GST Act provides, amongst other things, that an ACE course must be of a kind determined by the Education Minister to be an adult and community education course.
The Minister's determination is contained in the A New Tax System (Goods and Services Tax)(Adult and Community Education Courses) Determination 2000 (the Determination).
One of the requirements for a course to be of a kind in the Determination is that the course must not be provided by or at the request of an organisation to members of that organisation, except an organisation for which membership is open to adults in the general community.
The entity supplies a training course that is only open to its members. Membership of the association is open only to those who have a formal academic qualification and are currently, or were formerly, engaged in the practice of the particular profession. As such, the course is not open to adults in the general community. A group consisting only of those with relevant qualifications and who are, or formerly were, engaged in the practice of a particular profession, does not constitute adults in the general community. Therefore, the course is not a kind specified in the Determination and is not an ACE course that is GST-free under section 38-85 of the GST Act.
The entity is registered for GST and the supply satisfies the other positive limbs of section 9-5 of the GST Act. Furthermore, the supply is not GST-free under any other provision in Division 38 of the GST Act, nor is it input taxed under Division 40 of the GST Act. Therefore, the entity is making a taxable supply under section 9-5 of the GST Act when it supplies a training course only open to its members.
Date of decision: 21 March 2003
Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
section 9-5
Division 38
section 38-85
Division 40
section 195-1
Related Public Rulings (including Determinations)
GSTR 2000/27
Other References:
A New Tax System (Goods and Services Tax)(Adult and Community Education Courses) Determination 2000
Keywords
Goods and services tax
GST education
Education courses
Adult & community education courses
Taxable supply
ISSN: 1445-2782
| Date: | Version: | |
| You are here | 21 March 2003 | Original statement |
| 17 February 2006 | Archived |