ATO Interpretative Decision
ATO ID 2001/565 (Withdrawn)
Goods and Services Tax
GST and professional or trade coursesFOI status: may be released
-
The ATO view for this issue is covered in GSTR 2003/1This 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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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 professional association, 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 a training course which leads to a qualification that is legally required to enter a particular trade or profession?
Decision
Yes, the entity is making a GST-free supply under section 38-85 of the GST Act when it supplies a training course which leads to a qualification that is legally required to enter a particular trade or profession.
Facts
The entity is a professional association which represents the interests of its members and provides advice to relevant bodies on the professional standards required in the practice of that profession.
The entity is supplying a training course which leads to the gaining of a qualification that is legally required, under the relevant laws, for entry to or commencement in that profession.
The entity is registered for goods and services tax (GST).
Reasons for Decision
Section 38-85 of the GST Act provides that the 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:
- •
- for entry to a particular profession or trade in Australia; or
- •
- to commence the practice of (but not to maintain the practice of) a profession or trade in Australia.
Under the definition of 'essential prerequisite' in section 195-1 of the GST Act, a qualification is an essential prerequisite where there is a legal requirement for the qualification, for example, it is imposed by or under a law, regulation or industrial agreement; or there is a requirement imposed by a professional or trade association, either nationally or on a state basis.
In this case, the training course supplied by the entity leads to the gaining of a qualification that is legally required, under the relevant laws, for entry to or commencement in that profession.
As the entity is supplying a course that meets 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 under section 38-85 of the GST Act.
Date of decision: 15 August 2001
Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
section 38-85
section 195-1
Keywords
Goods and services tax
GST free
GST education
Education courses
ISSN: 1445-2782
| Date: | Version: | |
| 15 August 2001 | Original statement | |
| You are here | 23 December 2005 | Archived |
Copyright notice
© Australian Taxation Office for the Commonwealth of Australia
You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).
