| Disclaimer This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law. You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of your private ruling
Authorisation Number: 1012509501197
Ruling
Subject: GST-free supply of life saving education course
Question 1
Is the supply of the level 1 life support course GST-free under section 38-85 of the A New Tax System (Goods and Services Tax) Act 1999?
Answer
No, the supply of the level 1 life support course is not GST-free under section 38-85 of the A New Tax System (Goods and Services Tax) Act 1999.
Question 2
Is the supply of the level 2 life support course GST-free under section 38-85 of the A New Tax System (Goods and Services Tax) Act 1999?
Answer
No, the supply of the level 2 life support course is not GST-free under section 38-85 of the A New Tax System (Goods and Services Tax) Act 1999.
Relevant facts and circumstances
The entity develops and provides courses as well as providing courses developed by others. The entity has been accredited by a third party course developer to provide the level 1 life support course.
The entity provides the following courses:
level 1 life support course
This is a course developed and owned by a third party, designed to give participants the skills to manage a cardiac arrest or other medical emergencies in a clinical setting. Its aim is to train healthcare personnel in cardiopulmonary resuscitation, simple airway management and safe defibrillation, enabling them to manage patients in cardiac arrest until arrival of a cardiac arrest team and then to participate as members of that team
level 2 life support course
The level 2 life support course was created by the entity and is similar to the level 1 life support course but with added content and with a different delivery method. The skills taught include how to systematically examine undifferentiated patients, evaluate causes of cardiac arrest, prevent progression to sudden cardiac death, and perform high quality basic management if cardiac arrest cannot be avoided. The level 2 life support course delivers competencies in Basic Life Support, safe defibrillation, airway management to the level of Laryngeal Mask Airway placement and trauma skills such as cervical collar and spinal log roll.
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 195-1.
Reasons for decision
Question 1
The supply of an education course is GST-free under section 38-85 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act). An education course is defined in section 195-1 of the GST Act and includes a first aid or life saving course and a professional or trade course.
A professional or trade course is defined by section 195-1 of the GST Act as 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.
The level 1 life support course provided by the entity does not lead to a qualification that is imposed under an Australian law. Therefore, it is not an essential prerequisite for the entry into, or the commencement of a profession or trade and is not a professional or trade course for the purposes of the GST Act.
A first aid or life saving course is also defined in section 195-1 of the GST Act:
first aid or life saving course means a course of study or instruction that:
(a) principally involves training individuals in one or more of the following:
(i) first aid, resuscitation or other similar life saving skills including personal aquatic survival skills but not including swimming lessons; and
…
(b) is provided by an entity:
(i) that is registered (or otherwise approved) by a State or Territory authority that has responsibility for registering (or otherwise approving) entities that provide such courses; or
(ii) that is approved to provide such courses by a State or Territory body that has responsibility for approving the provision of such courses; or
…
The level 1 life support course provided by the entity aims to train healthcare personnel in cardiopulmonary resuscitation, airway management and safe defibrillation enabling them to manage patients in cardiac arrest until arrival of a full cardiac arrest team. Therefore, the course satisfies paragraph (a) of the definition as it principally involves training individuals in resuscitation (or similar life saving) skills.
However, the course will only be GST-free if it is provided by an entity that is registered or approved by a State authority or body that has responsibility for registering or approving these types of courses.
The entity is accredited by the third party course owner to provide the level 1 life support course. However, it is understood that the third party is neither a State or Territory authority or body, nor is it approved by any State or Territory authority or body to provide life saving courses. There is no licensing or regulatory restrictions on developing and providing courses which have similar content.
Consequently, the level 1 life support course provided by the entity does not satisfy the definition of life saving course for the purposes of the GST Act and is not GST-free.
Question 2
As discussed above, the supply of a professional or trade course of a first aid or life saving course is GST-free under section 38-85 of the GST Act.
As the level 2 life support course supplied by the entity does not lead to a qualification that is imposed under an Australian law, it is not an essential prerequisite for the entry into, or the commencement of a profession or trade and is not a professional or trade course for the purposes of the GST Act.
The level 2 life support course supplied by the entity provides skills in how to systematically examine undifferentiated patients, evaluate causes of cardiac arrest, prevent progression to sudden cardiac death, and perform high quality basic management if cardiac arrest cannot be avoided. The level 2 life support course delivers competencies in Basic Life Support, safe defibrillation, airway management to the level of Laryngeal Mask Airway placement and trauma skills such as cervical collar and spinal log roll. The course satisfies paragraph (a) of the definition of a 'first aid or life saving course' as it principally involves training individuals in resuscitation (or similar life saving) skills.
However, as mentioned above, the course will only be GST-free if the entity is registered or approved by a State authority or body that has responsibility for registering or approving these types of courses.
The entity is neither a State or Territory authority or body, nor is it approved by any State or Territory authority or body to provide life saving courses. There is no licensing or regulatory restrictions on developing and providing courses which have similar content.
Consequently, the level 2 life support course provided by the entity does not satisfy the definition of life saving course for the purposes of the GST Act and is not GST-free.