ATO Interpretative Decision
ATO ID 2001/587 (Withdrawn)
Goods and Services Tax
GST and administrative services and change of preference feeFOI status: may be released
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This ATO ID is withdrawn on the basis that it is a straight application of the law and does not contain an interpretative decision.This document incorporates revisions made since original publication. View its history and amending notices, if applicable.
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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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 supplier of educational assessments, making a GST-free supply under section 38-85 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it charges a change of preference fee for administrative services associated with processing change of preference applications?
Decision
No, the entity is not making a GST-free supply under section 38-85 of the GST Act when it charges a change of preference fee for administrative services associated with processing change of preference applications. It is making a taxable supply under section 9-5 of the GST Act.
Facts
The entity is a government authority. It assesses applications that are made for entry into an education course. The entity does not provide the education course. The entity charges a change of preference fee for administrative services associated with processing change of preference applications.
The entity is registered for goods and services tax (GST). The entity satisfies the other positive limbs of section 9-5 of the GST Act.
Reasons for Decision
Under section 38-85 of the GST Act, a supply is GST-free if it is a supply of:
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- an education course; or
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- administrative services directly related to the supply of such a course, but only if they are supplied by the supplier of the course.
Pursuant to paragraph 38-85(b) of the GST Act, the provision of administrative services related to an education course is GST-free if the supplier of the course provides the services. However, in this case, the entity that provides the administrative services is not the supplier of the course. As such, section 38-85 of the GST Act is not satisfied.
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 neither GST-free under Division 38 of the GST Act nor 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 charges a preference fee for administrative services associated with processing change of preference applications.
Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
section 9-5
Division 38
section 38-85
paragraph 38-85(b)
section 38-110
Division 40
Keywords
Goods & services tax
GST free
GST education
Prior learning
Taxable supply
ISSN: 1445-2782
| Date: | Version: | |
| 13 September 2001 | Original statement | |
| You are here | 17 February 2006 | Archived |