ATO Interpretative Decision
ATO ID 2001/278 (Withdrawn)
Goods and Services Tax
GST and Playgroup sessionsFOI status: may be released
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This ATO ID is withdrawn on the basis that it is a straight application of the law and does not contain an interpretative decisionThis document incorporates revisions made since original publication. View its history and amending notices, if applicable.
This ATOID provides you with the following level of protection:
If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.
Issue
Is the entity, a child care service provider, making a GST-free supply under Division 38 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it conducts playgroup sessions for infant children and their parents?
Decision
No, the entity is not making a GST-free supply under Division 38 of the GST Act when it conducts playgroup sessions for infant children and their parents. The entity is making a taxable supply under section 9-5 of the GST Act.
Facts
The entity is a supplier of various child care services. In this case, the entity is conducting playgroup sessions for infant children and their parents. The entity is not:
- (a)
- a registered carer within the meaning of section 3 of the A New Tax System (Family Assistance) (Administration) Act 1999 (FAA Act); or
- (b)
- an approved child care service within the meaning of section 3 of the FAA Act; or
- (c)
- eligible for funding from the Commonwealth under guidelines made by the Child Care Minister for any type of care.
The playgroup sessions are not conducted in accordance with any kind of set curriculum. The child care provider is not a school that is recognised under the law of the relevant State.
The entity is registered for goods and services tax (GST). The supply satisfies the other positive limbs of section 9-5 of the GST Act.
Reasons for Decision
Division 38 of the GST Act sets out the various categories of GST-free supplies. Of particular relevance in this case is Subdivision 38-C of the GST Act, which deals with education, and Subdivision 38-D of the GST Act, which deals with child care.
The supply of an education course is GST-free under paragraph 38-85(a) of the GST Act.
An 'education course', as defined in section 195-1 of the GST Act, includes a pre-school course. Under section 195-1 of the GST Act, a pre-school course means a course that is delivered in accordance with a pre-school curriculum recognised by a relevant State or Territory authority; and conducted by a school that is recognised as a pre-school under the law of the particular State or Territory.
The playgroup sessions are not delivered in accordance with a pre-school curriculum; nor are they conducted by a school that is recognised as a pre-school under the law of the relevant State. As such, the playgroup sessions do not fall within the meaning of a pre-school course. Therefore, the entity is not making a GST-free supply of an education course under paragraph 38-85(a) of the GST Act.
However, certain child care services are GST-free under Subdivision 38-D of the GST Act.
Under section 38-140 of the GST Act, a supply is GST-free if it is a supply of child care by a registered carer (within the meaning of section 3 of the FAA Act). In this case, the entity is not a registered carer within the meaning of section 3 of the FAA Act. As such, the entity is not making a GST-free supply under section 38-140 of the GST Act.
Under paragraph 38-145(a) of the GST Act, a supply is GST-free if it is a supply of child care by an approved child care service within the meaning of section 3 of the FAA Act. In this case, the entity is not an approved child care service within the meaning of section 3 of the FAA Act. As such the entity is not making a GST-free supply under paragraph 38-145(a) of the GST Act.
The supply of child care by a supplier that is eligible for funding from the Commonwealth, under guidelines made by the Child Care Minister, that relate to the funding of various types of care, is GST-free under section 38-150 of the GST Act. In this case, the entity is not eligible for funding from the Commonwealth under guidelines made by the Child Care Minister for any type of care. Therefore, the entity is not making a GST-free supply under section 38-150 of the GST Act.
The entity is registered for GST and the supply satisfies the other positive limbs of section 9-5 of the GST Act. Furthermore, the supply is neither GST-free under Division 38 of the GST Act nor input taxed under Division 40 of the GST Act. Therefore, the entity is making a taxable supply under section 9-5 of the GST Act when it conducts playgroup sessions for infants and their parents.
Date of decision: 21 June 2001
Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
section 9-5
Division 38
Subdivision 38-C
paragraph 38-85(a)
Subdivision 38-D
section 38-140
paragraph 38-145(a)
section 38-150
Division 40
section 3
Keywords
Goods & services tax
GST free
GST child care
GST education
Education courses
GST supplies & acquisitions
Taxable supply
ISSN: 1445-2782
| Date: | Version: | |
| 21 June 2001 | Original statement | |
| You are here | 23 December 2005 | Archived |