ATO Interpretative Decision

ATO ID 2001/584 (Withdrawn)

Goods and Services Tax

GST and assessment of qualifications for entry into an education course
FOI status: may be released

This ATO ID is withdrawn, as it is no longer necessary. The ATO view expressed in this ATO ID 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.

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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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 government authority, making a GST-free supply under section 38-110 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it assesses applications for entry into an education course?

Decision

Yes, the entity is making a GST-free supply under section 38-110 of the GST Act when it assesses applications for entry into an education course.

Facts

The entity is a government authority. The entity assesses applications that are made for entry into an education course. The entity determines which applicants are successful and advises the applicants of this. The entity receives a fee from the applicant for making the assessments.

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

Reasons for Decision

Under subsection 38-110 (1) of the GST Act, a supply is GST-free if the supply is the assessment or issue of qualifications for the purpose of:

•: access to education;
•: membership of a professional or trade association;
•: registration or licensing for a particular occupation; or
•: employment.

In this case, the entity assesses an applicant's qualifications for entry into an education course. The supply of this assessment is for the purpose of access to education and therefore, satisfies paragraph 38-110(1)(a) of the GST Act.

Subsection 38-110(2) of the GST Act provides that a supply is not GST-free under subsection 38-110(1) of the GST Act unless the supply is carried out by:

•: a professional or trade association;
•: an education institution;
•: an entity that is registered by a training recognition authority of a State or Territory in accordance with the Australian Recognition Framework to provide skill recognition (assessment only) services;
•: an authority of the Commonwealth or of a State or Territory; or
•: a local government body.

In this case, the supply satisfies paragraph 38-110(2)(d) of the GST Act as an authority of the Commonwealth or of a State or Territory carries out the assessment.

Therefore, the entity is making a GST-free supply under section 38-110 of the GST Act when it assesses an applicant's qualifications for entry into an education course.

Date of decision: 13 September 2001

Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
   section 38-110
   subsection 38-110(1)
   subsection 38-110(2)
   paragraph 38-110(1)(a)
   paragraph 38-110(2)(d)

Keywords
Goods & services tax
GST free
GST education
Prior learning

Siebel/TDMS Reference Number: 1-KP3TNG4; 1-MAI9VDV

Business Line: Indirect Tax

Date of publication: 15 November 2001

ISSN: 1445-2782

history

	Date:	Version:
	13 September 2001	Original statement
You are here	11 September 2020	Archived

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