Edited version of your written advice

Authorisation Number: 1051481252701s

Date of advice: 04 March 2019

Ruling

Subject: Supply of first aid and life saving courses and medical equipment

Question

1. Is the supply of some courses by you GST-free education courses?

1. Is the supply of the following goods by you GST-free?

● Defibrillators

● Oxygen equipment for life saving

● First aid kits, first aid related stock such as normal saline and gauze.

Answer

1. No the supply of the courses listed in this Ruling are not GST-free.

2. Please read below (Reasons for decision for a description of the GST status of the supply of goods).

Relevant facts and circumstances

You carry on an enterprise of conducting training sessions in first aid and selling supplies and event first aid in paramedics under a partnership agreement (MOU) a Registered Training Organisation (RTO).

Under the MOU you are considered to be an independent contractor to the RTO and not a legal representative, agent or employee of the RTO for any purposes whatsoever.

Under the MOU, both parties commit to the provisions of high quality service delivery of vocational education training (VET) training, assessment and recognition services that meet all the requirements of the Australian Quality Training Framework (AQTF) for the courses listed under the MOU.

You supply courses in first aid and lifesaving.

You are not a registered training organisation (RTO) in your own right.

You are not registered (or approved) by a State or Territory authority that has the responsibility for registering (or otherwise approving) entities that provide first aid, resuscitation or other similar lifesaving skills or medical rescue.

You are not an entity that is approved to provide courses such as first aid, resuscitation or other similar lifesaving skills or aero-medical rescue by a State or Territory body that has responsibility for approving the provision of such courses.

You are not an entity that uses, as the instructor for the course, a person who holds a training qualification for that course that was issued by Austswim Limited (ACN 097 784 122).

You are not an entity 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).

You are not an entity that uses, as the instructor for the course, a person who holds a training qualification for that course that was issued by The Royal Life Saving Society - Australia (ACN 008 594 616).

The trainer, who delivers the courses does not hold a certificate in the following lifesaving courses:

Item	Competency	Competency unit code within the National Training Framework
1	Respond to aquatic emergency using basic water rescue techniques	(a) SRC AQU 003A; or (b) SRC AQU 003B
2	Apply the principles of movement in water to aquatic activities	(a) SRC AQU 008A; or (b) SRC AQU 008B
3	Instruct water familiarisation, buoyancy and mobility skills	(a) SRC AQU 009A; or (b) SRC AQU 009B
4	Instruct water safety and survival skills	(a) SRC AQU 010A; or (b) SRC AQU 010B
5	Instruct the strokes of swimming	(a) SRC AQU 011A; or (b) SRC AQU 011B
6	Operate in accordance with accepted instructional practices, styles and legal and ethical responsibilities	(a) SRC CRO 007A; or (b) SRC CRO 007B

Under the MOU you are required to deliver training programs in accordance with the RTOs’ learning and assessment strategy.

If a student wishes to undertake a course in First Aid, they are required to enrol with you and are considered as your students (and thus are not students of the RTOs’).

You invoice the students for the courses that they undertake.

A qualification in First Aid and Resuscitation are required for all trades in the state that you conduct the courses.

Other courses that you deliver are as follows:

● Lifesaving courses

● sports trainer for a particular game

● Epilepsy and Management of Seizures

● Pool Lifeguard

● Basic Water Rescue

● Family First Aid – aimed at childcare workers who work closely with young children and babies to increase knowledge and skills

● Safety and Awareness training – aimed at healthcare workers who may deal with aggressive clients/patients and teaches them how to remain safe at work

● Manual Handling course.

The trainer holds several qualifications including the following:

● An OHS course for Health and Safety Representatives

● A Bachelor’s degree in a health science area

● Level 1 Sports Trainer – issued by Sports Medicine Australia

● Advanced First Aid

● Advanced Resuscitation

● Pool Lifeguard

● Pool Lifeguard (SISSS00111)

● Basic Water Rescue (SISCAQU002).

You supply the following goods

● Defibrillators

● Oxygen equipment for life saving

● First aid kits, first aid related stock such as normal saline and gauze.

Relevant legislative provisions

Section 9-5 of the A New Tax System (Goods and Services Tax) Act 1999

Section 38-85 of the A New Tax System (Goods and Services Tax) Act 1999

Section 38-45 of the A New Tax System (Goods and Services Tax) Act 1999

Reasons for decision

Section 38-85 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) 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.

Terms marked with asterisks (*) are defined in section 195-1 of the GST Act.

The term education course is defined further in section 195-1 of the GST Act as follows:

education course means:

(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 lifesaving course; or

(j) a * professional or trade course; or

(k) a * tertiary residential college course.

The relevant courses to consider in this case are:

● Tertiary course

● first aid or lifesaving course

● professional or trade course

● Adult and community education course (ACE course).

Tertiary course

Some courses that are delivered by RTO’s where they satisfy certain requirements as set out by the Student Assistance Minister are considered as tertiary courses.

Even though you have an agreement with an RTO, you are not an RTO. Further the courses that you deliver do not satisfy the requirements as set out by the Student Assistance Minister.

Accordingly the courses that you deliver are not Tertiary courses.

Professional or trade course

Section 195-1 of the GST Act defines a professional or trade course as follows:

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.

The Commissioners’ views on professional or trade courses are outlined in goods and services tax ruling, Goods and services tax: supplies that are GST-free as professional or trade courses (GSTR 2003/1). It has been contended that the courses that you run could be considered as an essential prerequisite for entry into certain trades (given that in your state in order to start working in almost all trades, a first aid and/or lifesaving qualification is mandatory). In regards to this, paragraph 96 of GSTR 2003/1 states:

96. There are numerous industrial instruments that require a person to obtain approval or certification before a particular task or duty in an occupation can be undertaken. The fact that there is such a requirement does not necessarily mean that the particular task or duty is a separate profession or trade. If the qualification merely relates to the undertaking of a duty or task in a profession or trade, a course leading to that qualification is not a professional or trade course. The qualification is not an essential prerequisite.

Accordingly, it is our view that even though there may be a requirement imposed for individuals to hold a first aid and/or lifesaving qualification to commence work in certain trades, this requirement is not considered as an essential prerequisite for the purposes of the definition of a professional or trade course.

Accordingly, we do not consider the courses that you conduct are professional or trade courses.

First aid or life saving

First aid or life saving course as defined in section 195-1 of the GST Act as follows:

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;

(ii) surf life saving;

(iii) aero-medical rescue; and

(b) is provided by an entity:

(i) that is registered (or otherwise approved) by a State or Territory authority that has responsibility for registering (or otherwise approving) entities that provide such courses; or

(ii) that is approved to provide such courses by a State or Territory body that has responsibility for approving the provision of such courses; or

(iii) that uses, as the instructor for the course, a person who holds a training qualification for that course that was issued by Austswim Limited (ACN 097 784 122); or

(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); or

(v) that uses, as the instructor for the course, a person who holds a training qualification for that course that was issued by The Royal Life Saving Society - Australia (ACN 008 594 616); or

(vi) that uses, as the instructor for the course, a person who holds a training qualification for that course that is a qualification (in life saving) specified in, or of a kind specified in, the regulations.

You supply first aid and resuscitation courses, the supply of these courses meets the first requirement outlined in paragraph (a) of the definition of a first aid or lifesaving course. However, we do not consider that the requirement outlined in paragraph (b) of the definition of a first aid or lifesaving course is satisfied. These requirements are individually addressed below:

(i) You are not registered (or approved) by a State or Territory authority that the responsibility for responsibility for registering (or otherwise approving) entities that provide first aid, resuscitation or other similar lifesaving skills or aero-medical rescue.

(ii) You are not an entity that is approved to provide courses such as first aid, resuscitation or other similar lifesaving skills or aero-medical rescue by a State or Territory body that has responsibility for approving the provision of such courses.

(iii) You are not an entity that uses, as the instructor for the course, a person who holds a training qualification for that course that was issued by Austswim Limited (ACN 097 784 122).

(iv) You are not an entity 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).

(v) You are not an entity that uses, as the instructor for the course, a person who holds a training qualification for that course that was issued by The Royal Life Saving Society - Australia (ACN 008 594 616).

(vi) In order for subparagraph (b)I(vi) of the definition of first aid or lifesaving course, the trainer should hold a training qualification for that course that is a qualification (in life saving) specified in, or of a kind specified in, the A New Tax System (Goods and Services Tax) Regulations 1999 (GST Regulations). In this regard, Regulations 195-0.02 of the GST Regulations states:

(1) For subparagraph (b)(vi) of the definition of first aid or life saving course in section 195-1 of the Act, the qualification specified is a qualification that:

(a) is provided by a registered training organisation under the National Training Framework; and

(b) certifies the attainment of all the competencies mentioned in column 2 of the table in Schedule 12, with the unit codes mentioned in column 3 of Schedule 12

Your trainer does not hold a certificate in the following lifesaving courses:

Item	Competency	Competency unit code within the National Training Framework
1	Respond to aquatic emergency using basic water rescue techniques	(a) SRC AQU 003A; or (b) SRC AQU 003B
2	Apply the principles of movement in water to aquatic activities	(a) SRC AQU 008A; or (b) SRC AQU 008B
3	Instruct water familiarisation, buoyancy and mobility skills	(a) SRC AQU 009A; or (b) SRC AQU 009B
4	Instruct water safety and survival skills	(a) SRC AQU 010A; or (b) SRC AQU 010B
5	Instruct the strokes of swimming	(a) SRC AQU 011A; or (b) SRC AQU 011B
6	Operate in accordance with accepted instructional practices, styles and legal and ethical responsibilities	(a) SRC CRO 007A; or (b) SRC CRO 007B

Accordingly, the supply of courses does not meet subparagraph (b)(vi) of the definition of first aid or lifesaving course.

Given that your supply of the courses does not meet the definition of first aid or lifesaving course as stated in the GST Act, they are not first aid or lifesaving courses.

Adult and community education course (ACE course)

An ACE course is defined in the GST Act as follows:

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 *Student Assistance 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 Student Assistance Minister to be an adult and community education course.

Accordingly, in order to meet the definition of an ACE course, in addition to other requirements, the course must be provided by or on behalf of a body as listed under subparagraphs (a)(i). (a)(ii) and a(iii) of the definition of ACE course.

You are not a higher education institution or an RTO. Further even though you have an agreement with an RTO, you do not supply any of the courses on-behalf of the RTO. This is specifically mentioned in the agreement. Accordingly, none of the courses that you supply are ACE courses.

The supply of the courses does not come within the meaning of any of the other GST-free supplies either.

Your supply of the courses comes within the meaning of a taxable supply as defined in section 9-5 of the GST Act and as such GST is payable on the delivery of all of the courses that are listed in this Ruling.

The supply of goods

Defibrillators

A sale of a medical device is GST-free if the requirements of subsection 38-45(1) of the GST Act are met. Subsection 38-45(1) of the GST Act states:

A supply is GST-free if:

(a) it is covered by Schedule 3 (medical aids and appliances), or specified in the regulations, and

(b) the thing supplied is specifically designed for people with an illness or disability, and it is not widely used by people without an illness or disability.

Item 1 in the table in Schedule 3 to the GST Act (item 1) is heart monitors.

There is no item in the table in Schedule 3 to the GST Act or Schedule 3 to the GST Regulations for defibrillators.

The GST treatment of a Defibrillator depends on whether they are AEDs or a Defibrillator that has the sole function of a Defibrillator.

AEDs

If the Defibrillators that you are selling are AEDs then they are considered to fall under item 1 for the following reasons.

An AED is a single device that performs more than one function. Where a single device performs more than one function it is necessary to determine what is its primary or most important function. The primary function of an AED is to monitor the patient's heartbeat or rhythm for the purpose of deciding whether a defibrillating shock is required. The device will either instruct the user to press a button or it will automatically activate, to deliver the shock to the patient.

An AED is a machine that is used primarily to monitor the heartbeat of patients in emergency situations with the ability to deliver a defibrillating shock if necessary. Therefore, it is considered to be covered by item 1. Additionally, an AED is specifically designed for people with an illness or disability and is not widely used by people without an illness or disability.

As all of the requirements of subsection 38-45(1) of the GST Act are met, the sale of a AED is GST-free under subsection 38-45(1) of the GST Act.

Therefore, your sales of the products are not taxable supplies. Hence, GST is not payable on these sales.

Defibrillators that have the sole function of being a Defibrillator

These items are not listed in Schedule 3 to the GST Act or Schedule 3 to the GST Regulations.

Accordingly, the sale of such an item does not meet the requirements of subsection 38-45(1) of the GST Act and as such is a taxable supply on which GST is payable.

Oxygen equipment

The only item of relevance to this case is item 135 in the table in Schedule 3 to the GST Act (Item 135). Item 135 lists 'bottled oxygen and associated hardware'.

The phrase 'associated hardware' is not defined in the GST Act. Accordingly, it is appropriate to examine the ordinary meaning of that phrase.

The Macquarie Dictionary (1997) defines the word 'associated' to include the following meaning '...anything usually accompanying or associated with another;...' and it defines the word 'hardware' to include the following meaning, 'the mechanical equipment necessary for conducting an activity...'.

Therefore, 'associated hardware' is considered to be mechanical equipment that usually accompanies or is associated with another piece of equipment, in order to conduct a certain activity.

Accordingly, if you are supplying hardware in conjunction with medical oxygen bottles, to supply oxygen to patients, these hardware will also be covered under Item 135 as associated hardware for bottled oxygen.

It is our view that the medical oxygen bottles and associated hardware are specifically designed for people with an illness or disability and not widely used by people without an illness or disability.

As such, where you supply medical oxygen bottles and associated hardware this supply will be a GST-free supply under subsection 38-45(1) of the GST Act.

This Ruling is not applicable to any other Oxygen equipment other than medical oxygen bottles and associated hardware.

First aid kits

First aid kits are not listed under any of the items in Schedule 3 to the GST Act. Accordingly, the supply of a First aid kit is not GST-free. However, Schedule to the GST Act lists the following items.

Accordingly, if you supply any of the above items separately and they are specifically designed for people with an illness or disability and are not widely used by people without an illness or disability, the supply of such items will be GST-free.