Edited version of private advice

Authorisation Number: 1012633968839

Ruling

Subject: GST-free supply of an education course

Question 1

Is the supply of the first training course GST-free under section 38-85 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?

Answer

Yes, the supply of the first training course is GST-free under section 38-85 of the GST Act.

Question 2

Is the supply of the second training course GST-free under section 38-85 of the GST Act?

Answer

Yes, the supply of the second training course is GST-free under section 38-85 of the GST Act.

Relevant facts and circumstances

You are a branch of the national council (Council) and are registered for goods and services tax (GST). The Council is a 'voluntary co-ordinating body which represents all major groups involved '. You are a not for profit organisation that provides courses. These are professional courses that are a prerequisite or mandate for employees. The successful completion of these courses gives the participant an accreditation that is recognised nationally and internationally. The Council aims to:

• do a number of things

The objectives of the Council are:

• a number of things

The Council is sponsored. The Council produces guidelines to meet its objectives in fostering uniformity and simplicity. Guidelines are produced after consideration of all available scientific and published material and are only issued after acceptance by all member organisations.

The Council acknowledges that methods other than those recommended by the council are not necessarily ineffective.

You supply the following two courses:

The first course

The second course

You previously received a private ruling for the same two courses and now have provided further relevant facts that were not previously provided and wish to include these and the facts and circumstances previously supplied for consideration towards your current application.

Further facts

You supplied a copy of the detailed program for each course.

For the courses you use a course instructor that is qualified to teach those courses and this qualification was issued by an entity.

Relevant legislative provisions

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

Reasons for decision

Question 1

The supply of an education course is GST-free under section 38-85 of the 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 first course supplied by you 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.

The meaning of 'first aid or life saving course' is provided 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:

...
(iv) that uses, as the instructor for the course, a person who holds a training qualification for that course that was issued by Surf Life Saving Australia Limited (ACN 003 147 180);

…

The first course supplied by you aims to train personnel.

The detailed course program is evidence of the course content and we are satisfied that the course content principally involves related training. Therefore, the course satisfies paragraph (a) of the definition of 'first aid or life saving course' in section 195-1 of the GST Act. However, to be GST-free, paragraph (b) of the definition must also be satisfied.

You, as the course supplier, use an instructor for that course who is qualified to provide that training and this qualification was issued by an entity. Therefore, the course satisfies paragraph (b) of the definition.

Consequently, the first training course supplied by you satisfies the definition of 'first aid or life saving course' for the purposes of the GST Act and is therefore a GST-free supply.

Question 2

Detailed reasoning

As discussed above, the supply of a professional or trade course or a first aid or life saving course is GST-free under section 38-85 of the GST Act as an education course if the course satisfies the meaning of 'first aid or life saving course' as defined under section 195-1 of the GST Act.

As the second training course supplied by you 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 second training course supplied by you aims to develop advanced skills.

The detailed course program is evidence of the course content and we are satisfied that the course content principally involves related training. Therefore, the course satisfies paragraph (a) of the definition of 'first aid or life saving course' in section 195-1 of the GST Act. However, to be GST-free, paragraph (b) of the definition must also be satisfied.

You, as the course supplier, use an instructor for that course who is qualified to provide that training and this qualification was issued by an entity. Therefore, the course satisfies paragraph (b) of the definition.

Consequently, the second training course supplied by you satisfies the definition of 'first aid or life saving course' for the purposes of the GST Act and is therefore a GST-free supply.