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Edited version of your written advice

Authorisation Number: 1051481252701s

Date of advice: 04 March 2019

Ruling

Subject: Supply of first aid and life saving courses and medical equipment

Question

Answer

Relevant facts and circumstances

You carry on an enterprise of conducting training sessions in first aid and selling supplies and event first aid in paramedics under a partnership agreement (MOU) a Registered Training Organisation (RTO).

Under the MOU you are considered to be an independent contractor to the RTO and not a legal representative, agent or employee of the RTO for any purposes whatsoever.

Under the MOU, both parties commit to the provisions of high quality service delivery of vocational education training (VET) training, assessment and recognition services that meet all the requirements of the Australian Quality Training Framework (AQTF) for the courses listed under the MOU.

You supply courses in first aid and lifesaving.

You are not a registered training organisation (RTO) in your own right.

You are not registered (or approved) by a State or Territory authority that has the responsibility for registering (or otherwise approving) entities that provide first aid, resuscitation or other similar lifesaving skills or medical rescue.

You are not an entity that is approved to provide courses such as first aid, resuscitation or other similar lifesaving skills or aero-medical rescue by a State or Territory body that has responsibility for approving the provision of such courses.

You are not an entity that uses, as the instructor for the course, a person who holds a training qualification for that course that was issued by Austswim Limited (ACN 097 784 122).

You are not an entity that uses, as the instructor for the course, a person who holds a training qualification for that course that was issued by Surf Life Saving Australia Limited (ACN 003 147 180).

You are not an entity that uses, as the instructor for the course, a person who holds a training qualification for that course that was issued by The Royal Life Saving Society - Australia (ACN 008 594 616).

The trainer, who delivers the courses does not hold a certificate in the following lifesaving courses:

Under the MOU you are required to deliver training programs in accordance with the RTOs’ learning and assessment strategy.

If a student wishes to undertake a course in First Aid, they are required to enrol with you and are considered as your students (and thus are not students of the RTOs’).

You invoice the students for the courses that they undertake.

A qualification in First Aid and Resuscitation are required for all trades in the state that you conduct the courses.

Other courses that you deliver are as follows:

The trainer holds several qualifications including the following:

You supply the following goods

Relevant legislative provisions

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

Section 38-85 of the A New Tax System (Goods and Services Tax) Act 1999

Section 38-45 of the A New Tax System (Goods and Services Tax) Act 1999

Reasons for decision

Section 38-85 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) states:

Terms marked with asterisks (*) are defined in section 195-1 of the GST Act.

The term education course is defined further in section 195-1 of the GST Act as follows:

The relevant courses to consider in this case are:

Tertiary course

Some courses that are delivered by RTO’s where they satisfy certain requirements as set out by the Student Assistance Minister are considered as tertiary courses.

Even though you have an agreement with an RTO, you are not an RTO. Further the courses that you deliver do not satisfy the requirements as set out by the Student Assistance Minister.

Accordingly the courses that you deliver are not Tertiary courses.

Professional or trade course

Section 195-1 of the GST Act defines a professional or trade course as follows:

The Commissioners’ views on professional or trade courses are outlined in goods and services tax ruling, Goods and services tax: supplies that are GST-free as professional or trade courses (GSTR 2003/1). It has been contended that the courses that you run could be considered as an essential prerequisite for entry into certain trades (given that in your state in order to start working in almost all trades, a first aid and/or lifesaving qualification is mandatory). In regards to this, paragraph 96 of GSTR 2003/1 states:

Accordingly, it is our view that even though there may be a requirement imposed for individuals to hold a first aid and/or lifesaving qualification to commence work in certain trades, this requirement is not considered as an essential prerequisite for the purposes of the definition of a professional or trade course.

Accordingly, we do not consider the courses that you conduct are professional or trade courses.

First aid or life saving

First aid or life saving course as defined in section 195-1 of the GST Act as follows:

You supply first aid and resuscitation courses, the supply of these courses meets the first requirement outlined in paragraph (a) of the definition of a first aid or lifesaving course. However, we do not consider that the requirement outlined in paragraph (b) of the definition of a first aid or lifesaving course is satisfied. These requirements are individually addressed below:

Your trainer does not hold a certificate in the following lifesaving courses:

Accordingly, the supply of courses does not meet subparagraph (b)(vi) of the definition of first aid or lifesaving course.

Given that your supply of the courses does not meet the definition of first aid or lifesaving course as stated in the GST Act, they are not first aid or lifesaving courses.

Adult and community education course (ACE course)

An ACE course is defined in the GST Act as follows:

Accordingly, in order to meet the definition of an ACE course, in addition to other requirements, the course must be provided by or on behalf of a body as listed under subparagraphs (a)(i). (a)(ii) and a(iii) of the definition of ACE course.

You are not a higher education institution or an RTO. Further even though you have an agreement with an RTO, you do not supply any of the courses on-behalf of the RTO. This is specifically mentioned in the agreement. Accordingly, none of the courses that you supply are ACE courses.

The supply of the courses does not come within the meaning of any of the other GST-free supplies either.

Your supply of the courses comes within the meaning of a taxable supply as defined in section 9-5 of the GST Act and as such GST is payable on the delivery of all of the courses that are listed in this Ruling.

The supply of goods

Defibrillators

A sale of a medical device is GST-free if the requirements of subsection 38-45(1) of the GST Act are met. Subsection 38-45(1) of the GST Act states:

A supply is GST-free if:

Item 1 in the table in Schedule 3 to the GST Act (item 1) is heart monitors.

There is no item in the table in Schedule 3 to the GST Act or Schedule 3 to the GST Regulations for defibrillators.

The GST treatment of a Defibrillator depends on whether they are AEDs or a Defibrillator that has the sole function of a Defibrillator.

Oxygen equipment

The only item of relevance to this case is item 135 in the table in Schedule 3 to the GST Act (Item 135). Item 135 lists 'bottled oxygen and associated hardware'.

The phrase 'associated hardware' is not defined in the GST Act. Accordingly, it is appropriate to examine the ordinary meaning of that phrase.

The Macquarie Dictionary (1997) defines the word 'associated' to include the following meaning '...anything usually accompanying or associated with another;...' and it defines the word 'hardware' to include the following meaning, 'the mechanical equipment necessary for conducting an activity...'.

Therefore, 'associated hardware' is considered to be mechanical equipment that usually accompanies or is associated with another piece of equipment, in order to conduct a certain activity.

Accordingly, if you are supplying hardware in conjunction with medical oxygen bottles, to supply oxygen to patients, these hardware will also be covered under Item 135 as associated hardware for bottled oxygen.

It is our view that the medical oxygen bottles and associated hardware are specifically designed for people with an illness or disability and not widely used by people without an illness or disability.

As such, where you supply medical oxygen bottles and associated hardware this supply will be a GST-free supply under subsection 38-45(1) of the GST Act.

This Ruling is not applicable to any other Oxygen equipment other than medical oxygen bottles and associated hardware.

First aid kits

First aid kits are not listed under any of the items in Schedule 3 to the GST Act. Accordingly, the supply of a First aid kit is not GST-free. However, Schedule to the GST Act lists the following items.

1

Advanced wound care

alginate

2

  

hydro colloids

3

  

hydro gel

4

  

polyurethane film

5

  

polyurethane foam

Accordingly, if you supply any of the above items separately and they are specifically designed for people with an illness or disability and are not widely used by people without an illness or disability, the supply of such items will be GST-free.

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