Edited version of private advice

Authorisation Number: 1052117308533

Date of advice: 12 May 2023

Ruling

Subject: GST and education course

Question

Is the supply by Company X (you) of each course listed in Table A of the facts GST-free under section 38-85 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?

Answer

No. The supply of each course listed in Table A is not a GST-free supply.

This ruling applies for the following period:

1 July 2022 to quarter ending 30 June 2023

The scheme commenced on:

1 July 2022

Relevant facts and circumstances

Company X (you) carries on an enterprise of providing education and training courses and is registered for GST.

You are not a recognised adult and community education (ACE) course provider nor a Registered Training Organisation.

You are engaged by students or employers to deliver each of the listed courses in Table A to the enrolled participant.

Table A

Table 1: Listed courses to enrolled participant

You receive consideration (or payment) for delivering the course listed in Table A from either the participant or an employer.

You buy the course material to deliver your training from the recognised training organisation (RTO) known as Entity Y. Entity Y is accredited to issue qualifications in Australian work industries.

Once a course has been completed an outside assessor (from Entity Y) is paid to assess the participant. The assessor issues a Notice of Satisfactory Assessment.

The sample copy of Notice of Satisfactory Assessment provided shows amongst other things at:

•         Part A: The "Details of Applicant", being the participant/students name, date of birth and contact number

•         Part B: The "Assessment Details" particulars including:

o   'Name of Organisation or employer of site' (Entity Y),

o   Assessment site address

o   Name of assessment site contact person being you,

o   Contact persons daytime phone number

o   Type of plant/equipment used during the assessment (i.e. Forklift)

o   Plant owner's name, being you.

•         Part C: The Applicants Declaration

•         Part D: The Assessor's Declaration, consisting of the assessors name, accreditation number, signature and RTO name and number (identified as Entity Y).

The courses in Table A are not adult and community education courses nor do they lead to or are prerequisite to a professional trade in themselves.

Relevant legislative provisions

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

Reasons for decision

Section 38-85 of the GST Act discusses the supply of education courses. In particular it states:

A supply is GST-free if it is a supply of:

a)    an *education course; or

b)    administrative services directly related to the supply of such a course, but only if they are supplied by the supplier of the course.

*denotes a defined term in section 195-1 of the GST Act.

Section 195-1 of the GST Act defines the term education course as follows:

"education course" means:

(a)  a *pre-school course; or

(b)  a *primary course; or

(c)   a *secondary course; or

(d)  a *tertiary course; or

(f)    a *special education course; or

(g)  an *adult and community education course; or

(h)  an *English language course for overseas students; or

(i)    a *first aid or life saving course; or

(j)    a *professional or trade course; or

(k)   a *tertiary residential college course.

In this case the courses listed in Table A do not fall within one of the defined categories above. Consequently, the supply of the courses will not be GST-free.

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