Edited version of your private ruling

Authorisation Number: 1012544848077

Ruling

Subject: GST and education courses

Question 1

Is the supply of the following courses a supply of Adult and Community Education Courses (ACE) and are they therefore GST-free under section 38-85 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act):

- The Illness A Program

- The Illness B

- The Illness C , and

- Illness D.

Answer

Yes, but only for the following courses:

- The Illness A Program

- The Illness B

- The Illness C , and

Refer to Reasons for decision below.

Question 2

Is the Emergency Medication For the Illness course (not an ACE course) a GST-free Special Education course?

Answer

No

Relevant facts and circumstances

· You are a public company and is registered for goods and services tax (GST).

· You are registered with the Australian Charities and Not for Profit Commission (ACNC). You are endorsed as Public Benevolent Body.

· You have been receiving funding from both the State and Federal Health & Aging Departments to develop online courses and tools so that nursing and carer professionals can improve their knowledge and skills in delivering services to people with a specific illness (the illness).

· Recently you have charged a fee that includes GST to provide a number of your courses including the following courses ('the courses'):

o The Illness A Program

o The Illness B

o The Illness C , and

o Illness.D.

· Brief description of the courses

The Illness C

This course will increase your understanding and awareness of the illness, and ensure you know what to do if the illness occurs. The course teaches in an interesting and visual format, showing real illness and experiences.

This course explores the basic facts about the illness and instructs participants on the key areas that professionals and careers need know to improve care and outcomes for their clients. Topics addressed include:

o the illness facts;

o types of the illness;

o living with the illness;

o the illness safety and first aid.

The course is self-paced and takes approximately 1 hour to complete.

The Illness B

This course helps healthcare professionals and carers to improve their understanding of the illness and consequently improve care and outcomes for their clients. The course provides participants with the skills, knowledge and practical information to increase their awareness and understanding of the illness, the causes, types of the illness, response to the illness activity (first aid),treatment (including medications), and the impact of the illness on lifestyle and in specialised groups (such as the elderly, children and people with disabilities). This course includes a number of videos of the illness, personal experiences and other visual aids regarding the illness to enhance the participants learning experience.

The course is self-paced and takes approximately 2 hours to complete.

This course is endorsed by APEC as authorised by Royal College of Nursing Australia (RCNA) according to approved criteria. Attendance attracts 3 RCNA CNE points as part of RCNA's Life Long Learning Program (3LP).

The Illness A Program

This course designed to increase Registered Nurse's knowledge of key clinical and social aspects of the illness for application into their service delivery and practice. The numerous modules in the course provide comprehensive, practical information about different types of the illness, its diagnosis, different forms of management and how it can affect someone's life and lifestyle. Videos of the illness, personal experiences and other visual aids about the illness matters are included in the course. There are assessment activities at the end of each module, as well as assessments to complete at the end of the course.

This course has been accredited by Royal College of Nursing, Australia (RCNA) according to approved criteria. Completion attracts 20 RCNA Continuing Nurse Education (CNE) points as part of RCNA's Life Long Learning Program (3LP).

The course is self paced and takes approximately 17 hours to complete.

Illness D

This course is designed to provide health care professionals and first aid officers with skills and knowledge to effectively administer emergency medications for the illness such as via appropriate routes in the community. Participants will learn about management of the illness, emergency medications used in the community, why they are required, what situations they are required, the types of documentation involved, their responsibilities during the process, and how to administer the medications in a safe and timely manner.

This online program has been accredited by Royal College of Nursing, Australia (RCNA) according to approved criteria. Attendance attracts X RCNA Continuing Nurse Education (CNE) points as part of RCNA's Life Long Learning Program (3LP). You have achieved the status of an APNA Endorsed Education Provider Partner. This activity has been endorsed by APNA, according to approved quality standards. Completion of the program entitles eligible participants to claim X CPD hours.

The course is self-paced and takes approximately 4 hours to complete. This course's Prerequisite: successful completion of The Illness B or The Illness C .

· The delivery of the courses

o class room, online, face to face: courses are predominantly delivered online but equivalent courses are available face to face/class room except for the two certain courses as they are only offered online.

o support and guidance: helpline support for online and instructor support for face to face / classroom

o assessments: Online for online courses and face to face for face to face courses

o monitoring and feedback: both online and face to face depending on delivery method

· The courses are advertised available to all adults in the general community.

· The courses are not private tuition and are not for your members.

Relevant legislative provisions

All references below are to the A New Tax System (Goods and Services) Tax 1999

section 9-5

section 38-85.

Reasons for decision

Question 1

Summary

The following courses meet the requirements to be Adult and Community education courses and therefore GST-free under section 38-85 of the GST Act.

- The Illness A Program

- The Illness B

- The Illness C , and

Refer to Reasons for decision below.

Detailed reasoning

Under section 38-85 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) the supply of an education course is GST-free.

The term 'education course' is defined in section 195-1 of the GST Act (the Dictionary) to include an adult and community education course.

Of relevance to your question is paragraph (g) of the definition where an education course includes an adult and community education course.

Section 195- of the GST Act defines the term 'adult and community education course.

The Education Minister has also issued the Education Minister's Determination A New Tax System (Goods and Services Tax) (Adult and Community Education Courses) Determination 2000 (Educations Minister's Determination).

Section 195-1 of the GST Act and the Education Minister's Determination provide that an ACE course is 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.

An education course is a GST-free ACE course where all of the above requirements are met. A supplier needs to consider the following three requirements:

1. whether the course they provide is likely to add to the employment related skills of people undertaking the course,

2. whether the course is of a kind determined by the Education Minister to be an ACE course, and

3. whether a supplier meets the requirement to be the provider of the ACE courses as stated in subsection 5(2) and section 6 of the Education Minister's Determination.

LIKELY TO ADD TO THE EMPLOYMENT RELATED SKILLS

This phrase is not defined in the GST Act. It is noted that the Education Minister is not responsible for determining whether an adult and community education course is likely to add to the employment related skills of people undertaking the course. This criterion is separate from the Minister's Determination, and will depend on the facts of each case. However, the Commissioner has issued goods and services tax ruling GSTR 2000/27 (a copy is attached) explaining the meaning of the phrase.

Paragraphs 15 to 17 of GSTR 2000/27 explain the phrase:

What is likely to add to the employment related skills of people undertaking an adult and community education course?

Paragraphs 15 to 17 of GSTR 2000/27 explain the phrase:

15. The test as to whether an adult and community education course is likely to add to the employment related skills of people undertaking the course is an objective test and not dependent on the subjective intention of the providers of the course or the recipients . However we consider a course satisfies the test if the course meets the following requirements:

(a) It is directed at people who want to add to their employment related skills; and

(i) The objectives of the course specify the employment related skills that participants will acquire in undertaking the course; and

(ii) The means of imparting the skills to the participants are clearly identified prior to the commencement of the course; and

(iii) There is a reasonable expectation that the skills being developed will be used in the course of being an employee, or working in a business, occupation, profession or trade, rather than for recreational, hobby, artistic or cultural endeavours.

16. In addition to the criteria outlined in paragraph 15, you should also consider the following:

(a) How the course is marketed.

A course that markets the employment related skills that will be acquired by undertaking the course will support your conclusion that the course will, on the balance of probabilities, add to the employment related skills of the participants.

(b) Whether the course is similar to an accredited vocational education and training (VET) program.

If you can clearly demonstrate that a majority of the course content is the same as part or all of a recognised VET program, this factor will support your contention that the course is likely to add to employment related skills of people undertaking the course.

(c) The outcomes of the course.

You have provided that

· The courses are going to add to the employment-related skills of people undertaking the courses. (see list of skills provided that the courses provide or develop).

· The skills that the people undertaking the courses can be obtained to develop, increase, advance or improve their knowledge and skills in delivering services to people with the illness.

· The courses are accredited for continuing professional development points by professional peak bodies including the Royal Australian college of GPs, Australian Practicing nurses Association, Royal College of Nursing Australia. The courses are recognised as well as an Australian Skills Quality Assurance nationally competing based courses for the Illness management.

· The delivery of the courses

o the courses are predominantly delivered online but equivalent courses available face to face/class room except for 2 particular courses as they are only offered online.

o helpline support is provided for online courses and instructor support for face to face /classroom courses

o assessments are conducted online for online courses and face to face for face to face courses

o monitoring and feedback is given both online and face to face depending on delivery method

It is considered that the courses you provide are likely to add to the employment related skills of people undertaking the course,

OF A KIND DETERMINED BY THE MINISTER

At section 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.

Note:

· Entry to the courses must not be not restricted to any particular group or by way of the imposition of an entry prerequisite and participants are enrolled on a 'first come - first served' basis.

· Where there are prerequisites for entry, the course is not available to all adults in the general community. As such, the course is not of a kind specified in the Determination and is not an ACE

· The lack of any entry criteria coupled with the wide scale of promotion and advertising of the course and its availability of 'first come - first serve' basis means that the course is available to adults in the general public.

You have provided that:

· The courses are advertised widely and are available to all adults in the general community.

· The courses are not private tuition and are not for your members.

· The courses are designed to educate special need carer specifically on the delivery of emergency medication and the illness management and 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.

It is considered that the courses are of a kind determined by the Minister with the exception of the Illness D which requires a pre-requisite.

THE SUPPLIER

A supplier of an ACE course is either:

· A higher education institution

A "higher education institution" is an institution that is established under Commonwealth or State or Territory government legislation as a higher education institution or is registered by the relevant state or territory higher education recognition authority. A Registered Training Organisation (RTO) recognised by a State or Territory authority, as a provider of courses or a kind described in the determination, or

· An organisation funded by the State or Territory on the basis that it is a provider of courses or a kind described in the determination, or

· A body that is funded by a State or Territory on the basis that it is a provider of courses or a kind described in the determination, 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.

You are a public company and are registered with the Australian Charities and Not for Profit Commission (ACNC). You are endorsed as Public Benevolent Body. You have not been refused recognition or disqualified by a State or Territory authority as a provider of ACE courses.

The following courses are considered Adult and Community courses:

- The Illness A Program

- The Illness B

- The Illness C .

Question 2

Summary

The Illness D course (not an ACE course) is not a GST-free Special Education courses

Detailed reasoning

Where an education course meets the requirements under any course listed in the definition in section 195-1 of the GST Act, the education course is GST-free under paragraph 38-85(a) of the GST Act. It is not necessary to review the course any further to determine the GST status of the course.

It follows that we need to consider whether the 'Illness D' (not an ACE Course) is an education course under paragraph (f) of the definition of education course in section 195-1 of the GST Act (special education course).

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

A course of education that provides special programs designed specifically for children with disabilities or student with disabilities (or both).

Goods and services tax ruling GSTR 2002/1 explains the definition of the term 'special education course' in section 195-1 of the GST Act.

A program is a special program if it is:

· designed specifically to meet the special needs of children or students with disabilities

· designed specifically to reduce or prevent the impact of disabilities for children or students with disabilities, or

· not made available to people generally.

A program when looked at as a whole needs to be recognised as a special program rather than each and every part of the course. For example, the course's content may mirror that of an existing curriculum-based course provided in a school, but delivered in a way that makes it suitable for children or students with disabilities.

While a special program needs to be designed specifically for children or students with disabilities, it is not necessary for people with disabilities to be the actual recipients of the program. A special program that is designed specifically for children or students with disabilities may contain elements that are directed at the parents or carers of those children or students. Provided these elements form an integral part of a special program that is designed specifically for children or students with disabilities, the Commissioner accepts that the program will still satisfy the requirement of a special education course.

However, a course or program that is designed to enhance the skills or knowledge of health or education professionals who work with children or students with disabilities is not a special education course.

You have provided that this course is designed to provide health care professionals and first aid officers with skills and knowledge to effectively administer first aid specialities.

Therefore, the Illness D course is not a Special Education course and is not GST-free.