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Edited version of your private ruling
Authorisation Number: 1012296918584
Ruling
Subject: GST and supply of an education course
Question:
Is an adult and community education (ACE) course supplied by you in Australia GST-free?
Answer:
Yes, an adult and community education course supplied by you in Australia is GST-free.
Relevant facts and circumstances
· You are an international association of education institutions.
· You are a not-for-profit body.
· You have headquarters in a number of countries.
· One of your main tasks is to conduct training programmes around the world to assist in the promotion and development of education.
· You intend to conduct a couple of training programmes in Australia.
· These programmes are offered for attendance by both residents and non-residents of Australia and are tailored for the advancement of professionals in all fields.
· The programmes will deal with educational fundraising and 'Developing a strategic approach to social media for education marketing and communications'.
· The courses are not restricted to members only. They are available for attendance by members and non-members.
· Registration fee is (inclusive of GST) for both members and non-members. However, you offer a GST-inclusive discounted fee to your members.
Relevant legislative provisions
A New Tax System (Goods and Services Tax Act) 1999 (GST Act) section 38-85
A New Tax System (Goods and Services Tax Act) 1999 (GST Act) section 195-1
Reasons for decision
The supply of an 'education course' is GST-free under section 38-85 of the A New Tax System (Goods and Services Tax) Act (GST Act). 'Education course' is defined in section 195-1 of the GST Act to include, amongst other things, an ACE course.
Section 195-1 of the GST Act and the Education Minister's Determination A New Tax System (Goods and Services Tax)(Adult and Community Education Courses) Determination 2000 (Education Minister's Determination) provide that an ACE course means a course of study or instruction that is:
(i) likely to add to the employment related skills of people undertaking the course
(ii) of a kind determined by the Education Minister to be an ACE course, and
(iii)provided by, or on behalf of, a body that is:
· a higher education institution,
· recognised or funded by the relevant State or Territory authority as a provider of ACE courses, or
· a body corporate operating on a not-for-profit basis that has not been refused recognition, or disqualified, by a State or Territory authority as a provider of ACE courses.
The courses provided by you are, based on the information supplied, likely to add to the employment related skills of the participants (in accordance with GSTR 2000/27) and you are a not-for-profit body corporate that has not been denied recognition as a provider of adult and community education courses by the relevant State or Territory authority. Therefore, the first and third requirements of an ACE course are satisfied.
The second requirement for an ACE course is that it must be of a kind determined by the Education Minister to be an ACE course. At subsection 5(2) of the Education Minister's Determination, the Education Minister states that an ACE course must:
(a) not be any other education course defined in section 195-1 of the GST Act; and
(b) be available to adults in the general community; and
(c) not be provided by or at the request of an employer to employees of that employer; and
(d) not be provided by or at the request of an organisation to members of that organisation, except an organisation for which membership is open to adults in the general community; and
(e) not be a course that is provided by way of private tuition to an individual.
The courses are not of a kind mentioned in any other paragraph of the definition of education courses in section 195-1 of the GST Act.
The courses are widely advertised via the internet. While your members are offered entry at a lower price than non-members, the courses are not restricted to your members only. Therefore, the course is available to adults in the general community.
The courses are not provided at the request of an employer to employees of that employer or by an organisation for its members and the courses are not provided by way of private tuition.
As such, the courses satisfy the criteria of the Education Minister's Determination and the second requirement of an ACE course is satisfied.
As you are a not-for-profit body corporate that supplies courses that are likely to add to the employment related skills of participants, and does so in circumstances that are in accordance with the Education Minister's Determination, you make a supply is an ACE course that is GST-free under section 38-85 of the GST Act.