Edited version of your private ruling

Authorisation Number: 1012457285815

Ruling

Subject: Adult and community education courses

Question 1

Is the higher education institution making a GST-free supply of an adult and community education course under section 38-85 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it supplies a workshop on waste minimisation?

Answer

Yes

Relevant facts and circumstances

The higher education institution (You) is registered for goods and services tax (GST).

You are endorsed as deductible gift recipient and a tax exempt entity.

You are a higher education institution under section 16 of the Higher Education Support Act 2003 and subsection 3(1) of the Student Assistance Act 1973 (refer to Student Assistance (Education Institutions and Courses) Determination 2009 (No. 2))

The subject of the workshop is a business methodology on waste.

The workshop is targeted at senior staff of organisations.

The workshop is not accredited nor does it form part of an accredited course.

Included in the price is the provision of lunch, and morning and afternoon tea on each day.

Attendance at the workshop is likely to add to the employment related skills of participants in accordance with paragraph 15 of Goods and Services Tax Ruling GSTR 2000/27 Goods and services tax: adult and community education courses; meaning of "likely to add to employment related skills".

You have not been denied recognition as a provider of adult and community education courses by the relevant State or Territory authority.

There is no prerequisite by way of a necessary level of knowledge or skill, or of completion of prior training, required by participant to undertake and gain benefit from the workshop.

The workshop is available to any adult person in the community who wishes to take the course.

The course is presented by way of a series of lectures, tutorials, discussion groups and practical exercises undertaken by participants in groups.

The manner in which the workshop is presented is not by way of private tuition for individuals.

The workshop is not provided by, or at the request of, an employer to employees of that employer.

The workshop is not provided by, or at the request of, an organisation to members of that organisation.

The course is not of a kind mentioned in any other paragraph of the definition of 'education course' in section 195-1 of GST Act.

Relevant legislative provisions

A New Tax System (Goods and Services Tax) Act 1999 38-85.

A New Tax System (Goods and Services Tax) Act 1999 195-1.

Reasons for decision

The legislative requirements

The supply of an 'education course' is GST-free under section 38-85 of the GST Act.

'Education course' is defined in section 195-1 of the GST Act to include, amongst other things, an adult and community education course.

An adult and community education course is relevantly defined under section 195-1 of the GST Act as:

· a course of study or instruction that is likely to add to the employment related skills of people undertaking the course; and

· is of a kind determined by the Education Minister to be an adult and community education course; and

· is provided by, or on behalf of, a body that is a higher education institution.

The Education Minister's Determination

In A New Tax System (Goods and Services Tax)(Adult and Community Education Courses) Determination 2000 (Educations Minister's Determination) the Education Minister states the kinds of courses that are adult and community education courses for purposes of the definition in section 195-1 of the Act.

Subsection 5(2) of the Education Minister's Determination states that an adult and community education course must:

(a) not be any other education course defined in section 195-1 of the 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 application of the facts

It is accepted that the proposed workshop is likely to add to the employment related skills of people undertaking the course and that the workshop is provided by a higher education institution.

The workshop satisfies the Education Minister's Determination for an adult and community education course because:

· the workshop is not of a kind mentioned in any other paragraph of the definition of education courses in section 195-1 of the GST Act.

· the workshop is available to adults in the general community

· the workshop is not provided by, or at the request of, an employer or an organisation for employees or members.

· the workshop is not is provided by way of private tuition.

Therefore, the supply of the workshop satisfies the definition of education course in section 195-1 of the GST Act and the criteria of the Education Minister's Determination of the kinds of courses that are adult and community education courses.

Accordingly, the supply of the workshop is a GST-free supply of an adult and community education course under section 38-85 of the GST Act.

Additional Information

Supply of food

Section 38-3 of the GST Act provides that a supply of food is not GST-free if it is a supply of food for consumption on the premises from which it is supplied.

Goods and Services Tax Ruling GSTR 2006/9 Goods and services tax: supplies, under Proposition 3, notes that a supply may consist of separately identifiable taxable and non-taxable parts. This ruling also notes at paragraph 65 that a supply that contains a dominant part, but also includes something that is integral, ancillary or incidental to that part is a composite supply, being the supply of a single thing.

If the provision of the lunch, and morning and afternoon teas on each day is not integral, ancillary or incidental to the supply of the education course, the consideration for the supply will need to be apportioned.

Goods and Services Tax Ruling GSTR 2001/8 Goods and services tax: apportioning the consideration for a supply that includes taxable and non-taxable parts explains how you can identify whether a supply includes taxable and non-taxable parts, and provides methods and examples that you may use to help you work out how to apportion the consideration.