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Edited version of your written advice
Authorisation Number: 1051190037449
Date of advice: 27 April 2017
Ruling
Subject: GST and education courses
Question 1
Is the supply of the Relevant Safety Authority approved Course (Initial course) GST-free under section 38-85 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?
Answer
Yes, the Initial course is GST-free under section 38-85 of the GST Act as an educational course because it leads to a qualification that is an essential prerequisite for entry into your chosen profession. The requirement to attain this qualification is mandated in Australia by an industrial instrument (Relevant Safety Regulations 1998), based on design standards set.
Question 2
Is the supply of the Relevant Safety Authority approved Course (Advanced course) a taxable supply under section 9-5 of the GST Act?
Answer
Yes, the Advanced course is taxable under section 9-5 of the GST Act as it is not excluded from being a taxable supply under section 38-85 as an educational course. This is because the Advanced course does not lead to a qualification that is an essential prerequisite for entry into your chosen profession. Instead, this qualification furthers an already existing career path.
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.
You are a consulting company providing training in Relevant Procedures for various services and Safety Authorities. The associated training courses have been registered for GST during the relevant period.
The Relevant Safety Regulations 1998 (the Regulations) stipulate that a person commits an offence if they carry on specific work on a terminal instrument flight procedure without permission.
Manual of Standards (the Manual) established under the Regulations elaborates the different grades of those who are permitted to carry on specific work, these have been provided. The Manual sets the minimum standard of experience and qualifications as follows:
● For Chief Designer: satisfactory completion of an advanced course in the related procedure design, and
● For Qualified Designer: satisfactory completion of an approved procedures design course. Approval of courses is made by a determination in accordance with section 3.3.1.1 of the Manual and subregulation 173.090(4) of the Regulations.
You have received an approval from the Relevant Regulation Division, pursuant to subregulation 173.090(4) of the Regulations to conduct the Initial course.
The Initial course is approved to be conducted at your location, during the relevant period, and by persons named in the approval. Based on information provided, your Deputy Chief Designer has signed off the six-week syllabus for the initial course.
Qualified Designer role - the Initial course
The Initial course, when successfully passed, entitles a student to commence on the job training with a certified company, and to gather experience toward qualifying as a certified Procedure Designer using ground based navigation aids only.
Eventually, with sufficient experience these students may become Qualified Designers. However, students who do not successfully pass the Initial course are not qualified to continue further on-the-job training.
Whilst it is desirable for students to possess prior experience in the aviation industry, the Initial course is available to anyone with Year 12 maths or physics knowledge. If required, aviation related subjects are covered during the course.
Although most students come from related professions such as traffic controllers, engineers and navigators, they do not bring with them directly relevant skills. During the course they are taught new specialist knowledge not required for other professions.
Chief Designer role - the Advanced course
The Advanced course provides students with new knowledge using industry specific based navigation aids. Where the Initial course teaches about the ground aids which can be physically seen, the Advanced course teaches about industry specific navigation and designing around a fixed point in space that has no physical presence.
Becoming Chief Designer may only be approved by the Relevant Authority given sufficient experience and completion of the Advanced course. The role of the Chief Designer carries with it functions and duties mandated by the Regulations.
An individual cannot enter this Advanced course without previously completing the Initial course and acquiring sufficient experience. Students who successfully pass this course, among other requirements, are eligible to continue training toward becoming Chief Designers.
Your Advanced course has been signed off by your Deputy Chief Designer.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 section 38-85