ATO Interpretative Decision

ATO ID 2004/118

Goods and Services Tax

GST and assessment of prior learning for credit towards an education course
FOI status: may be released

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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.

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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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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 38-110 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it assesses the qualifications of a person for the purpose of granting that person a credit that will exempt them from some aspects of an education course?

Decision

Yes, the entity is making a GST-free supply under section 38-110 of the GST Act when it assesses the qualifications of a person for the purpose of granting that person a credit that will exempt them from some aspects of an education course.

Facts

The entity is a professional association. The entity supplies a service of either assessing the qualifications held by a person or conducting a test to assess a person's knowledge and skills.

The assessment is for the purpose of granting the person a credit that will exempt them from some aspects of an education course.

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

Reasons for Decision

A supply is GST-free under subsection 38-110(1) of the GST Act when 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.

The entity supplies a service of either assessing the qualifications held by a person or conducting a test to assess a person's knowledge and skills. The entity's assessment is for the purpose of granting the person a credit that will exempt them from some aspects of an education course. The term 'access to education' is not restricted to mean only entry into a particular course or programme of education. This term also applies to credit towards or exemption from some aspects of a course. As such, the entity's supply is for the purpose of access to education and the supply satisfies the requirements in subsection 38-110(1) of the GST Act.

However, 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.

The entity is a professional association. Therefore, the entity's supply is not excluded from being GST-free under subsection 38-110(2) of the GST Act.

Accordingly, the entity is making a GST-free supply under section 38-110 of the GST Act when it assesses the qualifications of a person for the purpose of granting that person a credit that will exempt them from some aspects of an education course.

Date of decision:  11 November 2002

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

Keywords
Goods and services tax
GST free
GST education
Recognition of prior learning

Siebel/TDMS Reference Number:  3921309

Business Line:  Indirect Tax

Date of publication:  6 February 2004

ISSN: 1445-2782

history
  Date: Version:
You are here 11 November 2002 Original statement
  11 September 2020 Archived

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