ATO Interpretative Decision

ATO ID 2003/996

Goods and Services Tax

GST and adult and community education courses provided by way of private tuition
FOI status: may be released

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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 course in a student's home on a one-to-one basis?

Decision

No, the entity is not making a GST-free supply of an ACE course under section 38-85 of the GST Act when it supplies a course in a student's home on a one-to-one basis.

As the course is provided by way of private tuition, the entity is making a taxable supply under section 9-5 of the GST Act.

Facts

The entity is a not-for-profit body corporate that is registered for goods and services tax (GST).

The entity supplies a training course that provides a basic level of skill in the particular area. The course is presented by way of one-to-one training in the student's home.

The supply satisfies the other positive limbs of section 9-5 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 provides, amongst other things, that an ACE course must be of a kind determined by the Education Minister to be an adult and community education course.

The Minister's determination is contained in A New Tax System (Goods and Services Tax)(Adult and Community Education Courses) Determination 2000 (the Determination).

One of the requirements for a course to be of a kind described in the Determination is that the course must not be a course that is provided by way of private tuition to an individual.

The entity's course is provided to students on a one-to-one basis in their own homes. This method of provision is by way of private tuition. As such, the course is not of a kind specified in the Determination and is not an ACE course that is GST-free under section 38-85 of the GST Act.

The entity is registered for GST and the supply satisfies the other positive limbs of section 9-5 of the GST Act. Furthermore, the supply is not GST-free under any other provision in Division 38 of the GST Act, nor is it input taxed under Division 40 of the GST Act. Therefore, the entity is making a taxable supply under section 9-5 of the GST Act when it supplies a course in a student's home on a one-to-one basis.

Date of decision: 31 March 2003

Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
   section 9-5
   Division 38
   section 38-85
   Division 40
   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 education
Education courses
Adult & community education course
Taxable supply

Business Line: GST

Date of publication: 7 November 2003

ISSN: 1445-2782

history

	Date:	Version:
You are here →	31 March 2003	Original statement
	17 February 2006	Archived

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