Edited version of your private ruling

Authorisation Number: 1012536066589

Ruling

Subject: GST and education course

Question

Are the supplies of the alternative therapy courses, provided by you, education courses as defined under section 195-1 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?

Answer

No.

Relevant facts and circumstances

· You are not registered for GST.

· You are not a registered training organisation (RTO).

· You are not recognised or funded by the relevant State or Territory authority as a provider of adult and community education courses.

· You are not a body corporate operating on a not-for-profit basis.

· You are not an institution that is established by a law of the Commonwealth, a State or a Territory as a higher education institution or an institution registered or taken to be registered by the Tertiary Education Quality and Standards Agency (TEQSA), as a higher education provider.

· You are not an institution specified in section 4, or paragraph 34(4)(b), (f) or (h), of the Higher Education Funding Act 1988.

· You have been teaching alternative therapies such as massage (the course) for over ten years.

· The course is industry recognised.

· The course's assessment, curriculum and structure have been implemented by you. You have a teaching degree and are a current teacher with Education in a particular state.

· The course does not lead to a qualification that is an essential prerequisite for entry to a particular profession or trade in Australia.

· The course does not lead to a qualification that is an essential prerequisite to commence the practice of a profession or trade in Australia.

· The course does not lead to an award of an Australian Qualifications Framework (AQF) qualification or a statement of attainment.

· The course is not accredited with any external body.

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 38-85

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

A New Tax System (Goods and Services Tax) (Adult and Community Education Courses) Determination 2000

Student Assistance (Education Institutions and Courses) Determination 2009 (No.2) Schedule 2

Reasons for decision

Summary

The course provided by you is not considered an education course as defined under section 195-1 of the GST Act.

Detailed reasoning

Section 38-85 of the GST Act states that a supply is GST-free if it is a supply of an education course or a supply of administrative services directly related to the supply of such a course but only if they are supplied by the supplier of the course.

The term 'education course' is defined in section 195-1 of the GST Act to mean:

a) a *pre-school course; or

b) a *primary course; or

c) a *secondary course; or

d) a *tertiary course; or

e) (Repealed by No 143 of 2007)

f) a *special education course; or

g) an *adult and community education course; or

h) an *English language course for overseas students; or

i) a *first aid or life saving course; or

j) a *professional or trade course; or

k) a *tertiary residential college course.

(* denotes a term defined in section 195-1 of the GST Act)

We consider that a tertiary course, an adult and community education course and a professional or trade course are of relevance in this case.

A tertiary course

Section 195-1 of the GST Act states that a tertiary course means:

(a) 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; or

(aa) a course of study or instruction accredited at Masters or Doctoral level and supplied by a *higher education institution or a *non-government higher education institution; or

(b) any other course of study or instruction that the Education Minister has determined is a tertiary course for the purposes of this Act.

To be GST-free as a tertiary course, a course must satisfy the Education Minister's determination under subsection 5D(1) of the Student Assistance Act 1973, namely the Student Assistance (Education Institutions and Courses) Determination 2009 (No.2) (SA Determination). Among other things, the SA Determination provides that to be a tertiary course, the course must be provided by an RTO, a higher education institution or any other body approved by the relevant State or Territory to conduct the course.

You advised that you are not an RTO, a higher education institution or any other body approved by the relevant State or Territory to conduct the course. Therefore, the course you provide is not a tertiary course under section 195-1 of the GST Act.

For further information on tertiary courses, refer to Goods and Services Tax Ruling GSTR 2001/1 Supplies that are GST-free for tertiary education courses.

An adult and community education course

Section 195-1 of the GST Act states that an adult and community education course means a course of study or instruction that is likely to add to the employment related skills of people undertaking the course and:

(a) 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:

(i) that is a *higher education institution; or

(ii) that is recognised, by a State or Territory authority, as a provider of courses of a kind described in the determination; or

(iii) that is funded by a State or Territory on the basis that it is a provider of courses of a kind described in the determination; or

(b) is determined by the *Education Minister to be an adult and community education course

You advised that the course is not provided by, or on behalf of, a body that is recognised or funded as a provider of ACE courses or a body corporate operating on a not-for-profit basis. Therefore, the course you provide is not an ACE course under section 195-1 of the GST Act.

For further information on ACE courses, refer to Goods and Services Tax Ruling GSTR 2000/27 Adult and community education courses; meaning of "likely to add to employment related skills".

A professional or trade course

Section 195-1 of the GST Act states that a professional or trade course means 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.

However, a course that leads to a qualification that is an essential prerequisite for maintaining or progressing within the practice of a profession or trade is not a professional or trade course.

You advised that the course you supply does not lead to a qualification that is an essential prerequisite for entry to a particular profession or trade in Australia or to commence the practice of a profession or trade in Australia. Therefore, the course you supply is not a professional or trade course as defined in section 195-1 of the GST Act.

For further information on professional or trade courses, refer to Goods and Services Tax Ruling GSTR 2003/1 supplies that are GST-free as professional or trade courses.

The course that you supply does not fall under any of the other definitions of an education course in section 195-1 of the GST Act.

Taxable supply

Subsection 7-1(1) of the GST Act provides that GST is payable on taxable supplies.

Section 9-5 of the GST Act states that you make a taxable supply if:

(a) you make the supply for *consideration; and

(b) the supply is made in the course or furtherance of an *enterprise that you *carry on; and

(c) the supply is *connected with Australia; and

(d) you are *registered, or *required to be registered.

However, the supply is not a *taxable supply to the extent that it is *GST-free or *input taxed.

Currently you are not registered for GST. However, if you register or become required to be registered for GST, the supply of the course will be a taxable supply as the supply will meet all the requirements of section 9-5 of the GST Act.