Edited version of private advice

Authorisation Number: 1052006585206

Date of advice: 14 July 2022

Ruling

Subject: Special education course and administrative services

Question 1

Are the Taxpayer's supplies of Educational Program for students with learning disabilities GST-free supplies of special education courses for the purposes of section 38-85 of the GST Act?

Answer

Yes, the supply of the educational program you provide for children with learning disabilities will be GST-free under paragraph 38-85(a) of the GST Act.

Question 2

Are the Taxpayer's supplies of screening and assessments GST-free supplies of administrative services related to the special education courses they provide as per section 38-85 of the GST Act?

Answer

Yes, the supplies of assessments and eligibility screening are administrative services will be GST-free under paragraph 38-85(b) of the GST Act.

Question 3

Are the Taxpayer's supplies of Professional Development services and public seminars GST-free supplies of administrative services related to the special education courses they provide as per section 38-85 of the GST Act?

Answer

No, the supplies of Professional Development services and public seminars will not be GST-free under section 38-85 of the GST Act.

This ruling applies for the following periods:

XX June XXXX - XX June XXXX

XX June XXXX - XX June XXXX

The scheme commences on:

XX July 20XX

Relevant facts and circumstances

•         You are registered for GST and have been registered since XX.

•         You operate an enterprise of an Educational and support service for students with Dyslexia.

•         Your XX holds a Master's degree in Special education; are trained in and certified in multiple teaching methods including but not limited to XX, XX and Spelling and XX literacy.

•         Your XX also is a member of the International Dyslexia Association and a Certified Dyslexia Consultant and Screener.

•         You provide specialised educational and therapy sessions for struggling students. (children, teenagers and adults) with dyslexia, dysgraphia, dyscalculia, autism spectrum disorder and other learning disabilities.

•         You run one-on-one sessions with your students utilising the 'XX Method' which is geared towards providing for individual students needs based on their abilities through a multi-sensory approach, structured, sequential, diagnostic and prescriptive method to teach literacy to those with dyslexia.

•         This is combined with the 'XXXX' system, which is also a multisensory and direct program designed for direct intervention.

•         The XX system is a structured system with 13 steps for every lesson aiming to build student capacity with a concentration on literacy, reading, writing, numeracy, and overall communication skills.

•         Your program serves to help each student develop new skills and strategies to assist in their learning in school. It also helps to strengthen and develop the require language communication skills necessary for functional communication and social needs while providing time to practice and develop their executive function in order to improve their cognitive working memory skills.

•         The course is made up of XX levels, with each level taking between XX to XX sessions. The levels were provided as part of your ruling application.

•         You sometimes provide updates to a student's school to keep them updated on how they can help students in certain areas.

•         You provide progress reports to parents/families 4 times a year, one for every term giving updates on student's progress and overall improvement.

•         Students receive certificates at the completion of every level to track their performance through the course.

•         Your services as per your website include:

XX

•         You currently hire XX practitioners in total.

•         All your hired practitioners are required to be XXXX certified, participate in online training for XXXX program and also undergo XX months of observations before being able to practice.

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

Special Education Course

The supply of an education course is GST-free under paragraph 38-85(a) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act). 'Education course' is defined in section 195-1 of the GST Act to include, among other things, a special education course.

To be a special education course as defined in section 195-1 of the GST Act, a course must be one that:

(i) is a course of education

(ii) provides special programs, and

(iii) the special programs are designed specifically for children with disabilities or students with disabilities (or both).

The criteria for special education courses are addressed in Goods and Services Tax Ruling: supplies that are GST-free as special education courses (GSTR 2002/1).

A course of education

In the context of a 'special education course' in section 195-1 of the GST Act, GSTR 2002/1 explains that a course of education should be given a wide meaning to include a course or program of study involving systemic instruction, training or schooling in areas of scholastic and academic pursuits, vocational skills or personal development that is delivered for a group of children or students or to an individual child or student in the form of lessons or classes, or a unit or module that forms part of a larger course. It needs to have elements of interactive teaching, ongoing support and guidance, assessment, monitoring, and the provision of feedback.

Special programs designed specifically for children or students (of all ages) with disabilities.

Paragraph 19 of GSTR 2002/1 provides that a special program is one designed specifically to meet the special needs of children or students (of all ages) with disabilities, to reduce or prevent the impact of disabilities for students (of all ages) or children with disabilities, or not made available to people generally. Paragraph 20 of GSTR 2002/1 explains that the program as a whole must be recognised as a special program, though it is not necessary that every part of the course is 'special'.

What needs to be considered is the whole of the circumstances of the creation and delivery of the program to decide whether it is designed specifically for children or students with disabilities.

Relevant matters include the character of the program that is provided which may be established by considering its content, where it is delivered and how it will be delivered.

Paragraphs 33 and 34 of GSTR 2002/1 provides that a disability exists where an individual has difficulty in executing activities or has problems being involved in life situations because some body function or structure is impaired. This would include, but is not limited to, conditions such as a learning disability/specific learning difficulty (including dyslexia), autism spectrum disorder, physical disability, an emotional disorder, a language disorder, a hearing impairment, a visual impairment, or an intellectual disability that causes the individual difficulty in executing activities or problems involving life situations.

Paragraph 36 states: For example, a program is not a course of education if it only provides:

•         treatment for a medical or physical condition; or

•         personal or therapeutic care, support or assistance.

We are satisfied that the individual sessions you provide meet the above requirements as they are:

•         Courses of education, they are not ad hoc sessions but have a start and end date being a series of lessons/classes, have elements of interactive teaching, ongoing support, monitoring, and review of progress and are delivered by qualified and highly skilled educators.

•         They are special programs designed to meet the needs of children with disabilities.

•         You are not solely providing therapeutic care.

Administrative Services

Paragraph 38-85(b) of the GST Act states administrative services directly related to the supply of an education course will be considered GST-free only if they are supplied by the supplier of the course.

Paragraph 65 of GST Ruling 2000/30 (GSTR 2000/30) states that administrative services that would be considered GST-free include:

(a) enrolment processing;

(b) issue of identity cards;

(c) assessment of students;

(d) processing academic and sporting results;

(e) preparation and printing of student progress reports;

(f) arrangement of meetings with students, parents, guardians;

(g) record-keeping;

(h) administration of Speech Days and other similar school activities;

(i) administration of the school library;

(j) administration of a textbook scheme;

(k) administration of the sale, lease or hire of school equipment to students as part of the supply of an education course to the students; and

(l) administration of the supply of course materials.

We do consider that the additional services you provide in the form of screening processes to see if a child meets the profile of a student requiring a special needs course as GST-free for administration purposes.

There is a direct link between the service and the XX. Meetings arranged with the parents and family members to discuss how you can help them with your program.

We consider the service as an arrangement of meetings with students, parents, guardians. Accordingly, we consider that the screening and assessment service is an administrative service that is directly related to of an education course in which you supply, being the Special Education Course. Therefore, the supply of the screening and assessment service is a GST-free supply.

Professional Development

Your offering of professional development "XX." According to paragraph 19 of the GSTR 2002/1, a program is a special program if it is not made available to people generally. As the seminars are provided to the general public, we do not consider the seminars to be a special education course nor are your professional development service any other type of education course as defined in section 38-85 of the GST Act. Therefore, they will not be a GST-free supply.

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