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Edited version of your written advice
Authorisation Number: 1013097106121
Date of advice: 28 September 2016
Ruling
Subject: Education courses
Question
In circumstances where you supply contextualised or customised education courses to employers, is the charge to the employer for contextualisation or customisation correctly classified as consideration for a GST-free supply in both circumstances whereby:
(a) the charge is made on a per head basis along with all other course supply charges, and
(b) the charge is made separately to the per head charge?
Answer
Yes, the charge for contextualisation or customisation is correctly classified as consideration for the GST-free supply of education courses when charged either as a per head charge or separately.
Based on the information you provided, the education courses that you contextualise or customise are already accredited GST-free education courses. The terms of the engagement with an employer require you to deliver GST-free education courses to their staff. The degree of contextualisation or customisation of such courses does not cause those education courses to lose their accreditation as GST-free education courses. Accordingly, the charge for contextualisation or customisation forms part of the, overall consideration for the supply of GST-free courses.
Relevant facts and circumstances
This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling.
• You are registered for goods and services tax (GST).
• In the course of carrying on your enterprise you supply GST-free accredited training to corporate clients in the form of Diploma and Certificate IV. These qualifications fall within the definition of 'tertiary education' for the purposes of Division 195 of the GST Act.
• These qualifications are delivered to the employees of a corporate client.
• When requested by a client, you customise the face to face delivery and the materials of an already accredited course to suit the client's circumstances.
• Customisation entails putting into existing course materials the examples that specifically relate to that client. For example, customising a particular unit involves inserting in the course materials the examples of typical types of conflict encountered by that client, and amending the slides which are presented in the face to face class to generate relevant discussion and learning.
• These changes have no impact on the accreditation of the course, and courses continue to be accredited.
• You generally charge a per head price, which involves dividing the fixed cost of customisation along with other costs (enrolment fees, printing of materials, internal costs, facilitator costs) by the number of participants.
• In other cases, you may charge a client for the customisation separately from tuition fee.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 38-85, 195-1.
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