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Edited version of your written advice

Authorisation Number: 1051250083070

Date of advice: 2 August 2017

Ruling

Subject: GST and curriculum-related activities

Question

Is the supply of the incursion to the schools a GST-free supply under section 38-85 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?

Answer

No.

Relevant facts and circumstances

You are a registered secondary school teacher. You operate a business providing incursions to the school.

You are registered for GST.

You visit pre-schools, primary and secondary schools in your State to deliver the relevant State curriculum requested by the teachers of the school, which matches the Department of Education’s curriculum, to help student understanding.

The schools engage you and pay for your services.

You are not a pre-school, primary school or secondary school provider that is approved by the education authority in your State to conduct a pre-school, primary or secondary course.

Your website contains information about the incursion including the topics covered.

Relevant legislative provisions

A New Tax System (Goods and Services Tax) Act 1999 Section 9-5.

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

Summary

The supply of the incursion to the schools is not a GST-free supply under section 38-85 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act).

You are making a taxable supply under section 9-5 of the GST Act when you supply the incursion to the schools. Hence, GST is payable on the supply of the incursion.

Detailed reasoning

Section 38-85 of the GST Act provides that a supply of an education course is GST-free.

The term 'education course' is defined in the GST Act to include (amongst other things):

The terms 'pre-school’, 'primary course’ and 'secondary course’ are also defined in section 195-1 of the GST Act.

A pre-school course means a course that is delivered:

A pre-school curriculum includes programs for the development and education of children in the years prior to the commencement of a primary school course.

A primary course means:

A primary course is any course delivered by a school in accordance with the primary curriculum recognised by the education authority of the State or Territory. A school, as defined in the GST Act, is an institution approved by the education authority of a state or territory, to conduct a primary course.

A secondary course means:

Under the Education Minister’s determination, a secondary course can be delivered by a recognised secondary school, a registered training organisation, a higher education institution or a special school.

A supply of an education course includes tuition, facilities and other curriculum related activities and instructions.

Goods and Services Tax Ruling GSTR 2000/30 discusses supplies that are GST-free for pre-school, primary and secondary education courses. When the term 'you’ is used in the Ruling, it means the supplier of such a course (i.e. the school).

At paragraphs 42 to 50 of GSTR 2000/30 the taxing treatment of curriculum related activities and instruction is explained.

On the information provided, you are not recognised as a pre-school or a primary school under a State or Territory law. Furthermore, you are not a recognised secondary school, registered training organisation, higher education institution or special school.

You are engaged by schools to deliver incursion to their students. You have no contractual relationship with the students and the schools pay you for your services.

Your supply of the incursion forms part of the supply of the curriculum. However, it is the schools that supply the curriculum as part of their supply of the education course to students.

You are not making a supply of an education course yourself but are making a separate supply of your services and expertise to the schools in accordance with your agreement with them.

Therefore, the supply of the incursion to the schools is not a GST-free supply of an education course under section 38-85 of the GST Act.

Your supply of the incursion to the schools satisfies all the requirements of section 9-5 of the GST Act as follows:

Therefore, you are making a taxable supply and GST is payable on the supply of the incursion.


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