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Edited version of your private ruling
Authorisation Number: 1012508923468
Ruling
Subject: GST-free supply of life saving education course
Question 1
Is the supply of the level 1 life support course GST-free under section 38-85 of the A New Tax System (Goods and Services Tax) Act 1999?
Answer
No, the supply of the level 1 life support course is not GST-free under section 38-85 of the A New Tax System (Goods and Services Tax) Act 1999.
Question 2
Is the supply of the level 2 life support GST-free under section 38-85 of the A New Tax System (Goods and Services Tax) Act 1999?
Answer
No, the supply of the level 2 life support course is not GST-free under section 38-85 of the A New Tax System (Goods and Services Tax) Act 1999.
Relevant facts and circumstances
The entity is a incorporated body which has representatives from all major medical representative groups involved in the teaching and practice of resuscitation.
The entity aims to develop and promote uniform practice and procedures for resuscitation. The entity provides two courses:
level 1 life support course
This course is designed to give participants the skills to manage a cardiac arrest, or other medical emergency in a clinical setting. The course covers recognition of the critically ill patient, airway management, resuscitation procedures, safe defibrillation and basic drug therapy.
It is intended for healthcare personnel, enabling them to manage patients in cardiac arrest until arrival of a full cardiac arrest team, and to participate as members of that team.
level 2 life support course
This course focuses on developing advanced skills in managing cardiac arrest and other medical emergencies. While the course covers advanced resuscitation skills it is also designed to develop leadership and team skills in managing such emergencies.
It is intended for healthcare professionals who would be expected to apply the skills taught as part of their clinical duties, or to teach them on a regular basis.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 section 38-85
A New Tax System (Goods and Services Tax) Act 1999 section 195-1
Reasons for decision
Question 1
The supply of an education course is GST-free under section 38-85 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act). An education course is defined in section 195-1 of the GST Act and includes a first aid or life saving course and a professional or trade course.
A professional or trade course is defined by section 195-1 of the GST Act as 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 of (but not to maintain the practice of) a profession or trade in Australia.
The level 1 life support course supplied by the entity does not lead to a qualification that is imposed under an Australian law. Therefore, it is not an essential prerequisite for the entry into, or the commencement of a profession or trade and is not a professional or trade course for the purposes of the GST Act.
The meaning of 'first aid or life saving course' is provided in section 195-1 of the GST Act:
first aid or life saving course means a course of study or instruction that:
(a) principally involves training individuals in one or more of the following:
(i) first aid, resuscitation or other similar life saving skills including personal aquatic survival skills but not including swimming lessons; and
…
(b) is provided by an entity:
(i) that is registered (or otherwise approved) by a State or Territory authority that has responsibility for registering (or otherwise approving) entities that provide such courses; or
(ii) that is approved to provide such courses by a State or Territory body that has responsibility for approving the provision of such courses; or
…
The level 1 life support course supplied by entity aims to train healthcare personnel in cardiopulmonary resuscitation, airway management and safe defibrillation enabling them to manage patients in cardiac arrest until arrival of a full cardiac arrest team. Therefore, the course satisfies paragraph (a) of the definition in section 195-1 of the GST Act as it principally involves training individuals in resuscitation (or similar life saving) skills.
However, the course will only be GST-free if the entity is registered or approved by a State authority or body that has responsibility for registering or approving these types of courses.
Whilst it is understood that the entity aims to foster and co-ordinate the practice and teaching of resuscitation and promote uniformity of resuscitation, the entity is neither a State or Territory authority or body, nor is it approved by any State or Territory authority or body to provide life saving courses. There are no licensing or regulatory restrictions on developing and providing courses which have similar content.
Consequently, the level 1 life support course provided by the entity does not satisfy the definition of life saving course for the purposes of the GST Act and is not a GST-free supply.
Question 2
As discussed above, the supply of a professional or trade course of a first aid or life saving course is GST-free under section 38-85 of the GST Act.
As the level 2 life support course supplied by entity does not lead to a qualification that is imposed under an Australian law, it is not an essential prerequisite for the entry into, or the commencement of a profession or trade and is not a professional or trade course for the purposes of the GST Act.
The level 2 life support course supplied by the entity aims to develop advanced skills in managing cardiac arrest, resuscitation and to develop leadership in managing such medical emergencies. This course is designed for healthcare professionals who would be expected to apply the skills taught as part of their clinical duties, or to teach others. The course satisfies paragraph (a) of the definition in section 195-1 of the GST Act of a 'first aid or life saving course' as it principally involves training individuals in resuscitation (or similar life saving) skills.
However, as mentioned above, the course will only be GST-free if the entity is registered or approved by a State authority or body that has responsibility for registering or approving these types of courses.
The entity is neither a State or Territory authority or body, nor is it approved by any State or Territory authority or body to provide life saving courses. There is no licensing or regulatory restrictions on developing and providing courses which have similar content.
Consequently, the level 2 life support course provided by the entity does not satisfy the definition of life saving course for the purposes of the GST Act and is not a GST-free supply.
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