Edited version of your written advice

Authorisation Number: 1012688045850

Ruling

Subject: GST and conferences

Question

Is the provision of conferences a GST-free supply?

Answer

No.

Relevant facts and circumstances

This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling.

Certain facts not provided with your Ruling application have been obtained from your website.

You are a provider of kindergarten, childcare, and family day care services.

You are a community based early childhood association.

You are registered for goods and services tax (GST).

You are a not for profit organisation.

You only employ university qualified teachers/directors.

Family day care and OSHC providers receive full training and undergo continuous professional development and monitoring.

In addition to your supply of kindergarten, childcare, and family day care services you also provide conferences, engaging external speakers to deliver topics relating to early childhood education.

The themes of the conferences are around early childhood education, such as how to promote educational excellence, how educators can work with health care provider to help children with special needs, etc.

Attendees are early childhood educators: mainly your employees but other early childhood educators (non employees) may also register.

Relevant legislative provisions

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

Section 9-5

Section 38-85

Section 38-140

Section 38-145

Section 38-150

Section 38-155

Reasons for decision

Summary

The supply of your conferences is not a GST-free supply under either section 38-85 or section 38-155 of the GST Act.

Detailed reasoning

Taxable Supplies

Under A New Tax System (Goods and Services Tax) Act 1999 (GST Act), GST is payable on taxable supplies that you make. Section 9-5 states:

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.

It is considered that the provisions of the GST Act dealing with input tax supplies will have no application to the type of supply mentioned in your Ruling request.

Is the supply GST-free?

Subsection 9-30(1) states:

A supply is GST-free if:

(a) it is GST-free under Division 38 or under a provision of another Act; or

(b) it is a supply of a right to receive a supply that would be GST-free under paragraph (a).

Supplies directly related to the supply of child care that is GST-free

A supply that is directly related to child care that is GST-free is also GST-free under section 38-155 of the GST Act.

Section 38-155 of the GST Act states:

A supply is GST-free if it is a supply that is directly related to a supply of child care that is:

(a) GST-free because of section 38-140, 38-145 or 38-150; and

(b) supplied by, or on behalf of, the supplier of the child care.

Explanatory Memorandum

Paragraph 5.66 of the Explanatory Memorandum to the A New Tax System (Goods and Services Tax) Bill 1998 provides guidance on section 38-155 of the GST Act. It states:

5.66 Child care includes the provision of all the goods and services that are directly related to the child care. For example, supplies of food, electricity, bed linen and nappy wash services are covered by the exemption. Section 38-155.

Under section 38-140 and section 38-145 of the GST Act, a supply is GST-free if it is a supply of child care by a registered carer or by an approved child care service provider, within the meaning of section 3 of the A New Tax System (Family Assistance)(Administration) Act 1999 (FAA Act). There is no requirement in section 38-140 of the GST Act that the registered carer either receives or be entitled to receive funding from the government.

On the facts provided you are an approved child care service provider, within the meaning of section 3 of the FAA Act.

Under section 38-150 of the GST Act a supply of childcare is GST-free if it is a supply of child care by a supplier that is eligible for funding from the Commonwealth under guidelines made by the Child Care Minister that relate to the funding of Family day care or occasional care or outside school hours care or vacation care or any other type of care determined in writing by that Minister.

You have advised that you are eligible for funding from the Commonwealth under guidelines made by the Child Care Minister that relate to the funding of Family day care or occasional care or outside school hours care or vacation care or any other type of care determined in writing by that Minister.

However the supply of your conferences is a supply that is made to your employees and other non-employees and it is considered that it is not directly related to the supply of child care as the conferences are not provided to the children that would be the recipients of the child care services. Consequently the supply of your conferences would not be a GST-free supply under section 38-155 of the GST Act.

An example of a GST-free 'course' would be where an external provider comes into the child care centre to provide a fitness program to the children one day per week. This fitness program is an elective program whereby the parents can opt for their child to attend this additional program. The child care centre engages the third party and the parents pay the child care centre to attend. In this instance we would consider that the course enhances the essential criteria/curriculum that the centre must adhere to. The supply is not only relevant, but directly related to a supply of GST-free child care and it is done on the Child care centre's behalf. Therefore the fitness course would be GST-free.

GST-free education course

Supplies of courses are GST-free under Division 38, if they satisfy the requirements set out in section 38-85, which states:

A supply is GST-free if it is a supply of:

(a) an *education course; or

(b) administrative services directly related to the supply of such a course, but only if they are supplied by the supplier of the course.

'Education course' is defined in subsection 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) a *Masters or Doctoral course; or

(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."

'Professional or trade course' is defined in subsection 195-1 of the GST Act to mean 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 under section 195-1 of the GST Act.

On the facts provided it is considered that your conferences are designed to enhance the skills, knowledge and qualifications of the attendees. The conferences are more akin to continuing professional development courses and are not a professional or trade course.

Continuing professional development are courses undertaken to maintain qualifications or certificates of clinical practice. Such courses are specifically excluded from the definition of 'professional or trade course', and accordingly, such courses are not GST-free under section 38-85 of the GST Act.

General

In your application you have referred to a previously issued private ruling. We advise that although you may believe that the facts and decisions in those cases support your argument for the Commissioner to exercise his discretion and allow the refund of the overpaid GST we cannot comment on advice given to other taxpayers due to privacy considerations.

Each record is based on the facts of a specific situation as advised to the Tax Office and reflects our view of the law in force at the time the advice was issued.

Private Rulings issued to other entities cannot be relied upon as precedent or used for determining how the Tax Office will apply the law in other cases because the advice is binding on the Commissioner only in relation to the specific entity named in the written binding advice.