ATO Interpretative Decision
ATO ID 2003/1013
Goods and Services Tax
GST and adult and community education courses provided by a women's association to its membersFOI status: may be released
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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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 widely promoted course to its women members?
Decision
Yes, the entity is making a GST-free supply of an ACE course under section 38-85 of the GST Act when it supplies a widely promoted course to its women members.
Facts
The entity is a not-for-profit body corporate (incorporated association) that is registered for goods and services tax (GST). The association is set up to support the interests of women in industry. Membership is open to any woman of 18 years or over.
The entity has not been denied recognition as a provider of ACE courses by the relevant State or Territory authority.
The entity supplies a course that is likely to add to the employment related skills of participants in accordance with Goods and Services Tax Ruling GSTR 2000/27.
There is no prerequisite by way of a necessary level of knowledge or skill, or of completion of prior training, required by participant to undertake and gain benefit from the course.
The entity supplies the course to its members only. Any woman who wishes to take the course is required to join the association.
The course is widely advertised in local papers, posters and fliers distributed around the district and through a number of community organisations. Participants are enrolled on a 'first come - first served' basis.
The course is presented by way of a series of lectures, tutorials, discussion groups and practical exercises undertaken by participants in groups. The manner in which the course is presented is not by way of private tuition for individuals.
The course is not provided by or at the request of an employer to employees of that employer. The course is not of a kind mentioned in any other paragraph of the definition of education courses in section 195-1 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 and the Education Minister's Determination A New Tax System (Goods and Services Tax)(Adult and Community Education Courses) Determination 2000 (Educations Minister's Determination) provides that an ACE course is a course of study or instruction that is:
- (i)
- likely to add to the employment related skills of people undertaking the course,
- (ii)
- of a kind determined by the Education Minister to be an ACE course, and
- (iii)
- provided by, or on behalf of, a body that is:
- •
- a higher education institution,
- •
- recognised or funded by the relevant State or Territory authority as a provider of ACE courses, or
- •
- a body corporate operating on a not-for-profit basis that has not been refused recognition, or disqualified, by a State or Territory authority as a provider of ACE courses.
The entity supplies a course that is likely to add to the employment related skills of participants (in accordance with GSTR 2000/27) and the entity is a not-for-profit body corporate that has not been denied recognition as a provider of adult and community education courses by the relevant State or Territory authority. Therefore, the first and third requirements of an ACE course are satisfied.
The second requirement for an ACE course is that it must be of a kind determined by the Education Minister to be an ACE course. At subsection 5(2) of the Education Minister's Determination, the Education Minister states that an ACE course must:
- (a)
- not be any other education course defined in section 195-1 of the Act and
- (b)
- be available to adults in the general community and
- (c)
- not be provided by or at the request of an employer to employees of that employer and
- (d)
- 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, and
- (e)
- not be a course that is provided by way of private tuition to an individual.
The course is not of a kind mentioned in any other paragraph of the definition of education courses in section 195-1 of the GST Act.
The entire membership of a particular gender constitutes a sufficiently large segment of the population to be considered 'adults in the general community'. In addition, the course has no prerequisite by way of a necessary level of knowledge or skill, or of completion of prior training and the method of promotion of the course lead to the conclusion that the course is available to adults in the general community.
The course is not provided by or at the request of an employer to employees of that employer.
The entity supplies the course to its members only and any woman who wishes to take the course is required to join the association. Membership is open to any woman of 18 years or over. As concluded above, the entire membership of a particular gender constitutes a sufficiently large segment of the population to be considered adults in the general community. As such, the course is a course provided by an organisation for which membership is open to adults in the general community.
The course is presented by way of a series of lectures, tutorials, discussion groups and practical exercises undertaken by participants in groups. The manner in which the course is presented is not by way of private tuition for individuals.
As such, the supply of the course by the entity satisfies the criteria of the Education Minister's Determination and the second requirement of an ACE course is satisfied.
The entity is a not-for profit body corporate that supplies a course that is likely to add to the employment related skills of participants, and does so in circumstance that are in accordance with the Education Minister's Determination. Therefore, the entity is making a GST-free supply of an ACE course under section 38-85 of the GST Act when it supplies a widely promoted course to its women members.
Date of decision: 6 March 2003
Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
section 38-85
section 195-1
Related Public Rulings (including Determinations)
Goods and Services Tax Ruling 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 free
GST education
Education courses
Adult & community education course
ISSN: 1445-2782