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Edited version of private ruling
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Ruling
Subject: GST and training provided under the auspice of a registered training organisation
Question
Is the training you provide within the Australian Qualifications Training Framework (AQTF) GST-free when you provide it under the auspice of a registered training organisation?
Answer
Yes the training you provide within the AQTF is GST-free when you provide it under the auspice of a registered training organisation.
Relevant facts
You are a particular college providing training and education
You are registered for goods and services tax (GST)
You have been operating for a number of years
You are waiting approval of Registered Training Organisation (RTO) status
You previously operated under the auspice of a RTO and are entering into a new RTO agreement to deliver training under the auspice of an RTO
All of your courses are accredited Vocational Education & Training (VET) certificate courses
A Statement of Attainment is issued by the RTO for all courses when completed
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 A New Tax System (Goods and Services Tax) Act 1999 (GST Act) provides that the supply of an education course is GST-free. The definition of an education course in section 195-1 of the GST Act includes a tertiary course.
The definition of a tertiary course in section 195-1 of the GST Act includes a course of study or instruction that is a tertiary course determined by the Education Minister under subsection 5D(1) of the Student Assistance Act 1973 for the purposes of that Act.
Paragraph 13 of GSTR 2001/1 (supplies that are GST-free for tertiary education courses) notes:
13. A tertiary course includes all tertiary courses covered by the determination issued by the Education Minister under the Student Assistance Act 1973. This determination is also used to identify those courses that students must be undertaking to be eligible for income support as full-time students. The determination lists the type of course and types of educational institutions that can deliver the course. The eligibility of courses for the Student Assistance Act 1973 is reviewed periodically by the Education Minister.
The Student Assistance Act (SAA) Determination (No. 2009/2) Determination of Education Institutions and Courses under subsections 3(1) and 5D(1) of the Student Assistance Act 1973 states at subparagraph 10 (1) that a tertiary course is a course specified in Schedule 2 to the instrument.
Column 1 of Schedule 2 lists that a tertiary course includes a vocational education and training program that is not a secondary course specified in Schedule 1. Column 2 of Schedule 2 lists that the vocational education and training program is a tertiary course where it is provided by a higher education institution or a registered training organisation (RTO).
Therefore a vocational education and training program (that is not a secondary course) conducted by a registered training organisation is a tertiary course.
Paragraph 4 of Determination 2009/2 gives the definition of registered training organisation as:
registered training organisation means an organisation that is registered by the relevant State or Territory training recognition authority in accordance with the Australian Quality Training Framework to provide one or more vocational education and training programs.
Paragraph 4 of Determination 2009/2 states:
vocational education and training program means a course that leads to an award of an AQF qualification or a Statement of Attainment, and the course must be:
(a) an accredited vocational education and training course; or
(b) a sequence of training consisting of one or more subjects or modules where each subject or module is from an accredited vocational education and training course; or
(c) a structured approach to the development and attainment of competencies for a particular AQF qualification specified in an endorsed training package.
Therefore if your vocational education and training program satisfies the definition for (a), (b) or (c) above, and you are a RTO for those courses, the supply of the education course will be GST-free.