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Edited version of your written advice

Authorisation Number: 1051250083070

Date of advice: 2 August 2017

Ruling

Subject: GST and curriculum-related activities

Question

Is the supply of the incursion to the schools a GST-free supply under section 38-85 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?

Answer

No.

Relevant facts and circumstances

You are a registered secondary school teacher. You operate a business providing incursions to the school.

You are registered for GST.

You visit pre-schools, primary and secondary schools in your State to deliver the relevant State curriculum requested by the teachers of the school, which matches the Department of Education’s curriculum, to help student understanding.

The schools engage you and pay for your services.

You are not a pre-school, primary school or secondary school provider that is approved by the education authority in your State to conduct a pre-school, primary or secondary course.

Your website contains information about the incursion including the topics covered.

Relevant legislative provisions

A New Tax System (Goods and Services Tax) Act 1999 Section 9-5.

A New Tax System (Goods and Services Tax) Act 1999 Section 38-85.

A New Tax System (Goods and Services Tax) Act 1999 Section 195-1.

Reasons for decision

Summary

The supply of the incursion to the schools is not a GST-free supply under section 38-85 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act).

You are making a taxable supply under section 9-5 of the GST Act when you supply the incursion to the schools. Hence, GST is payable on the supply of the incursion.

Detailed reasoning

Section 38-85 of the GST Act provides that a supply of an education course is GST-free.

The term 'education course' is defined in the GST Act to include (amongst other things):

    ● a pre-school course;

    ● a primary course; or

    ● a secondary course.

The terms 'pre-school’, 'primary course’ and 'secondary course’ are also defined in section 195-1 of the GST Act.

A pre-school course means a course that is delivered:

    (a) in accordance with a pre-school curriculum recognised by:

    (i) the education authority of the State or Territory in which the course is delivered; or

    (ii) a State or Territory body that has the responsibility for recognising pre-school curricula for courses delivered in that State or Territory; and

    (b) by a school that is recognised as a pre-school under the law of the State or Territory.

A pre-school curriculum includes programs for the development and education of children in the years prior to the commencement of a primary school course.

A primary course means:

    (a) a course of study or instruction that is delivered:

    (i) in accordance with a primary curriculum recognised by the education authority of the State or Territory in which the course is delivered; and

    (ii) by a school that is recognised as a primary school under the law of the State or Territory; or

    (b) any other course of study or instruction that the Education Minister has determined is a primary course for the purposes of this Act.

A primary course is any course delivered by a school in accordance with the primary curriculum recognised by the education authority of the State or Territory. A school, as defined in the GST Act, is an institution approved by the education authority of a state or territory, to conduct a primary course.

A secondary course means:

    (a) a course of study or instruction that is a secondary course determined by the Education Minister under subsection 5D(1) of the Student Assistance Act 1973 for the purposes of that Act; or

    (b) any other course of study or instruction that the Education Minister has determined is a secondary course for the purposes of this Act.

Under the Education Minister’s determination, a secondary course can be delivered by a recognised secondary school, a registered training organisation, a higher education institution or a special school.

A supply of an education course includes tuition, facilities and other curriculum related activities and instructions.

Goods and Services Tax Ruling GSTR 2000/30 discusses supplies that are GST-free for pre-school, primary and secondary education courses. When the term 'you’ is used in the Ruling, it means the supplier of such a course (i.e. the school).

At paragraphs 42 to 50 of GSTR 2000/30 the taxing treatment of curriculum related activities and instruction is explained.

    Curriculum related activities and instruction

    42. The supply of curriculum related activities is part of the supply of an education course. Curriculum related activities include visits to you by organisations such as animal farms, theatre companies and science fairs.

    43. The supply of curriculum related instruction is part of the supply of an education course. Curriculum related instruction includes instruction by external tutors or any third parties engaged by you to deliver part or all of the curriculum. It also includes remedial and advanced (extension) teaching provided by you for individual students.

    44. As the supply of curriculum related activities and instruction is part of the supply of an education course, it is irrelevant whether the amount charged for the activity or instruction is included in the fee you charge for the course or whether it is charged separately. The amount charged must be paid to you, as the supplier of the education course. If the amount charged for the activities or instruction is paid by students to the provider of the activities or instruction, it is not GST-free to students as a supply of an education course.

    45. However, if the provider is approved by the relevant state or territory body to conduct a pre-school, primary or secondary course, the supply made to students is the supply of an education course in its own right and is GST-free.

    46. If the supply of the activity or instruction to you is made by an entity that is registered or required to be registered, the supply to you is a taxable supply41 and the amount you pay for the activities or instruction includes GST. You are entitled to input tax credits in respect of the GST paid on the acquisitions by you of activities or instruction. The subsequent supply that you make to students is GST-free.

    Example Remedial Teaching

    47. Georgia is a Year 7 student and the school engages a private tutor to assist Georgia with her reading skills. The private tutor charges the school a GST inclusive fee. Engaging the services of private tutors to assist students with learning difficulties is a creditable acquisition and the school is entitled to an input tax credit for the GST paid. The subsequent supply by the school to Georgia is GST-free.

    Example Drug Education

    48. An organisation offers drug education services to local organisations and community groups including schools. The organisation approaches Warranvale High to park their caravan in the school grounds and to give students the option of attending their seminar on drugs.

    49. The organisation charges the students directly for attending their seminar. The charge is a GST-inclusive fee as the seminar is not conducted by the school.

    50. Had the school contracted with the organisation directly, the fee charged to the school would still be taxable. If the school determined that the course was related to its curriculum, the fee charged to students would be GST-free and the school would be entitled to claim an input tax credit.

On the information provided, you are not recognised as a pre-school or a primary school under a State or Territory law. Furthermore, you are not a recognised secondary school, registered training organisation, higher education institution or special school.

You are engaged by schools to deliver incursion to their students. You have no contractual relationship with the students and the schools pay you for your services.

Your supply of the incursion forms part of the supply of the curriculum. However, it is the schools that supply the curriculum as part of their supply of the education course to students.

You are not making a supply of an education course yourself but are making a separate supply of your services and expertise to the schools in accordance with your agreement with them.

Therefore, the supply of the incursion to the schools is not a GST-free supply of an education course under section 38-85 of the GST Act.

Your supply of the incursion to the schools satisfies all the requirements of section 9-5 of the GST Act as follows:

    ● you make the supply of the incursion for consideration

    ● the supply is made in the course or furtherance of your enterprise

    ● the supply is connected with Australia

    ● you are registered for GST and

    ● the supply of the incursion is neither GST-free nor input taxed.

Therefore, you are making a taxable supply and GST is payable on the supply of the incursion.