ATO Interpretative Decision

ATO ID 2001/435 (Withdrawn)

Goods and Services Tax

GST and the supply of OH& S training courses
FOI status: may be released

Withdrawn. The position stated in this ATO ID is no longer current. The current ATO position on this issue is contained in GSTR 2003/1, in particular see paragraphs 49 and 65 to 68.

This document incorporates revisions made since original publication. View its history and amending notices, if applicable.

CAUTION: This is an edited and summarised record of a Tax Office decision. This record is not published as a form of advice. It is being made available for your inspection to meet FOI requirements, because it may be used by an officer in making another decision.

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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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 provider of training courses, 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 supplies an occupational health and safety (OH&S) course?

Decision

Yes, the entity is making a GST-free supply under section 38-85 of the GST Act, when it supplies an OH&S course.

Facts

The entity is a provider of training courses. The entity is providing an OH&S training course. The course provided is a prerequisite to employment in the construction industry, as required by a relevant State law. The course is designed to follow the OH&S Induction Training requirements.

The entity is registered for goods and services tax (GST).

Reasons for Decision

Under section 38-85 of the GST Act, a supply of an education course is GST-free. The definition of 'education course' in section 195-1 of the GST Act includes a 'professional or trade course'.

'Professional or trade course' is defined in section 195-1 of the GST Act to mean:

a course leading to a qualification that is an essential prerequisite:

(a): for entry to a particular profession or trade in Australia; or
(b): to commence the practice (but not to maintain the practice of) a profession or trade in Australia.

A qualification is an 'essential prerequisite' for the purpose of the definition of professional or trade course, if in relation to the entry to a particular profession or trade, the qualification is imposed under an industrial instrument (as defined in section 195-1 of the GST Act).

'Industrial instrument' is defined in section 195-1 as having the meaning given by section 995-1 of the Income Tax Assessment Act 1997 (ITAA 1997). Section 995-1 of the ITAA defines an 'industrial instrument' to mean:

•: an Australian law; or
•: an award, order, determination or industrial agreement in force under an Australian law.

In this case, the entity provides courses that lead to the gaining of qualifications legally required, under the relevant State laws, for entry into an occupation in the construction industry.

As the entity is supplying courses that meet the requirements of a professional or trade course (as defined in section 195-1 of the GST Act), it is making a GST-free supply of an education course under section 38-85 of the GST Act.

Date of decision: 14 June 2001

Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
section 38-85
section 195-1

Income Tax Assessment Act 1997
section 995-1

Keywords
Goods and services tax
GST-free
GST Education
Education courses

Business Line: Goods and Services Tax

Date of publication: 11 October 2001

ISSN: 1445-2782

history

	Date:	Version:
	14 June 2001	Original statement
You are here	16 December 2003	Archived

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