Edited version of private advice

Authorisation Number: 1052404900132

Date of advice: 12 June 2025

Ruling

Subject: GST - education courses

Question 1

Are your supplies of requalification courses to certificate holders GST-free supplies of education courses under section 38-85 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?

Answer 1

No, your supplies of requalification courses to certificate holders are not GST-free supplies of education courses under section 38-85 of the GST Act. The supplies of the requalification courses are subject to GST.

Relevant facts and circumstances

•                     You are registered for the goods and services tax (GST).

•                     You will be delivering requalification courses to licensed certificate holders who require an additional license to work in a particular sector of their profession.

•                     You are not a Registered Training Organisation (RTO) and will not be delivering the courses under the scope of an RTO.

•                     The requalification courses are required by law to be completed annually by certificate holders to keep their licence to work in that sector of their profession.

•                     A licensing authority is responsible for licencing and accreditation of courses and course providers for that sector of the profession.

•                     You have been approved by the licensing authority to deliver the requalification courses. The licensing authority reviewed and accepted your training materials.

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

Section 38-85 of the GST Act provides that an education course is GST-free. The definition of education course in section 195-1 of the GST Act includes a number of education courses including, relevantly, a professional or trade course.

Professional or trade courses are defined in section 195-1 of the GST Act to mean a course leading to a qualification that is an essential prerequisite:

a) for entry to a particular profession or trade in Australia; or

b) to commence the practice of (but not to maintain the practice of) a profession or trade in Australia.

For the purposes of the definition of a 'professional or trade course' the term 'essential prerequisite' is defined in section 195-1 of the GST Act as:

a qualification is an essential prerequisite in relation to the entry to, or the commencement of the practice of, a particular profession or trade if the qualification is imposed:

(a)          by or under an industrial instrument; or

(b)          if there is no industrial instrument for that profession or trade but there is a professional or

trade association that has uniform national requirements relating to the entry to, or the

commencement of the practice of, the profession or trade concerned - by that association; or

(c)          if neither paragraph (a) nor (b) applies but there is a professional or trade association in a State or

Territory that has requirements relating to the entry to, or the commencement of the practice of, the

profession or trade concerned - by that association.

Therefore, a GST-free professional or trade course must:

1)            lead to a qualification: and

2)            the qualification is an essential prerequisite for the entry to, or to commence the practice of a profession or trade in Australia.

Goods and Services Tax Ruling, GSTR 2003/1, Goods and services tax: supplies that are GST-free as professional or trade courses (GSTR 2003/1) provides guidance on when a course meets the requirements of GST-free professional or trade course as defined in section 195-1 of the GST Act.

Maintaining the practice of a trade

Paragraph 98 of GSTR 2003/1 advises the exclusion in paragraph (b) of the definition of a professional or trade course in section 195-1 of the GST Act ensures that a course which leads to a qualification that is an essential pre-requisite for maintaining the practice of a profession or trade, is not a professional or trade course.

As stated in paragraph 99 of GSTR 2003/1, maintaining the practice of a profession or trade includes such things as:

•                     undertaking continuing professional development;

•                     re-licensing;

•                     re-accreditation;

•                     renewal of annual practising certificates; and

•                     refresher courses.

Your supplies of requalification courses are a form of re-accreditation course and do not meet the requirements of a professional or trade course as defined in section 195-1 of the GST Act. As your courses do not meet the requirements of any other type of education course defined in section 195-1 of the GST Act, your courses are not GST-free under section 38-85 of the GST Act.

Section 9-5 of the GST Act, provides you make a taxable supply if:

(a) you make the supply for consideration

(b) the supply is made in the course or furtherance of an enterprise that you carry on

(c) the supply is connected with the indirect tax zone, and

(d) you are registered, or required to be registered for GST.

However, the supply is not a taxable supply to the extent that it is GST-free or input taxed.

Summary

You are not making GST-free supplies of education courses under section 38-85 of the GST Act when you supply the requalification courses. There are no provisions of the GST Act that apply to make the supplies GST-free or input taxed. Your supplies are subject to GST as you are registered for GST and satisfy all the requirements of section 9-5 of the GST Act.

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