Edited version of private advice

Authorisation Number: 1052341779359

Date of advice: 23 December 2024

Ruling

Subject: GST-free

Question 1

Is the supply of your adapted reading, spelling and writing programs GST-free under section 38-85 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) when supplied to children with learning disabilities?

Answer 1

Yes, the supply of your adapted reading, spelling and writing programs is GST-free under section 38-85 of the GST Act when supplied to children with learning disabilities.

This ruling applies for the following period:

XX December 20XX to XX December 20XX

The scheme commenced on:

1 July 20XX

Relevant facts and circumstances

You have been registered for GST since XXX. You advertise your services as 'XXX,.

Your enterprise is constituted by the supply to children (Kindergarten to Year 7) who have been diagnosed with or present with Specific Learning Disorders (SLDs) such as Autism, ADHD, Dyslexia, Dysgraphia, Dyscalculia, Dyspraxia, Language Delay, Auditory Processing Disorder (APD), Low Working Memory, and Developmental Language Delay (DLD).

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

Paragraph 38-85(a) of the GST Act provides that a supply of an education course is GST-free. Education course is defined in section 195-1 of the GST Act to mean, amongst other things, at paragraph (f) a special education course.

For that purpose, 'special education course' is defined by section 195-1 of the GST Act to mean, 'a course of education that provides special programs designed specifically for children with disabilities or students with disabilities (or both).'

Goods and Services Tax Ruling GSTR 2002/1 - Supplies that are GST-free as special education courses sets out the ATO's view on what constitutes a special education course.

To be a special education course it must meet the following requirements:

•                it is a course of education,

•                it provides special programs, and

•                the special programs are designed specifically for children with disabilities or students with disabilities (or both) (paragraph 12 of GSTR 2002/1).

Course of education

To be considered a course of education in the context of the definition of a special education course, it must be a course or program of study involving systematic instruction, training or schooling in areas of:

•                scholastic and academic pursuits,

•                vocational skills, or

•                personal development (paragraph 15 of GSTR 2002/1),

In this case, you create a program of study that involves systematic instruction in areas of scholastic and academic pursuits. This is evidenced by your adaption of a program to specifically meet the needs of individual students/children with achieving competencies in reading, spelling and writing.

Paragraph 16 of GSTR 2002/1 states that 'the systematic instruction, training or schooling may be delivered to a group of children or students or to an individual child or students and may take the form of:

•                a series of lessons or classes, or

•                a unit or module that forms part of a larger course.'

You provide a series of lessons on a weekly or twice weekly basis that are delivered to students or children on a one-on-one basis.

To be a course of education, the systematic instruction also needs to have elements of interactive teaching. Factors that indicate interactive teaching include, but are not limited to:

•                delivery of educational instruction through an instructor or teacher,

•                ongoing support and guidance, for example, staff being available to answer questions,

•                assessment of the child's or student's progress,

•                monitoring or supervision, and

•                provision of feedback concerning the child or student (paragraph 17 of GSTR 2002/1).

You deliver the classes to the student and provide ongoing support and guidance, including being available one-on-one to answer questions. You asses the child/student's progress and you provide feedback as required.

It is considered when you adapt your reading, spelling and writing program, you are supplying a course of education.

Special program

Paragraph 19 of GSTR 2002/1 states a program is a special program if it is:

•                designed specifically to meet special needs of children or students with disabilities,

•                designed specifically to reduce or prevent the impact of disabilities for children or students with disabilities, or

•                not made available to people generally.

You have designed programs to specifically meet the needs of each of the children/students you teach. The programs are based off a program and adapted for each individual child/student. Whilst the program does mirror content of an existing curriculum based course provided in a school, it is delivered in a way that makes it suitable for children/students with disabilities (paragraph 20 of GSTR 2002/1).

Designed specifically for children or students with disabilities

Paragraph 22 of GSTR 2002/1 states that you 'need to consider the whole of the circumstances of the creation and delivery of a program to decide whether it is designed specifically for children or students with disabilities.

Relevant matters include:

•                evidence of an intention to design the program for children or students with disabiltiies,

•                the character of the program that is provided,

•                the intended recipients of the program, and

•                any relevant obligations you or others have in providing the program.

The evidence you provided shows that you have designed the course specifically to meet the needs of children/students with disabilities. You also market the course as such.

Therefore, the adapted reading, spelling and writing programs that you supply to children with learning disabilities is considered to be a special education course as defined in section 195-1 of the GST Act. As such, your supply is GST-free under section 38-85 of the GST Act.

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