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This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law.

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Edited version of private advice

Authorisation Number: 1051617900625

Date of advice: 5 December 2019

Ruling

Subject: Goods and services tax (GST) and education courses

Question

Is GST payable on your supplies of the following courses?

  • Certificate III in Early Childhood Education and Care
  • Certificate III in Individual Support
  • Certificate III in Individual Support (Ageing)
  • Certificate III in Individual Support (Disability)
  • Certificate III in Individual Support (Home and Community)
  • Certificate III in Individual Support (Ageing, Home and Community)
  • Certificate IV in Disability
  • Diploma in Early Childhood Education and Care
  • Provide Cardiopulmonary resuscitation (CPR)
  • Provide first aid

Answer

No.

Relevant facts and circumstances

You are registered for GST.

You supply a number of training courses in Australia.

You are an RTO (a Registered Training Organisation).

You supply the following courses, which are within the scope of your RTO registration:

  • Certificate III in Early Childhood Education and Care
  • Certificate III in Individual Support
  • Certificate III in Individual Support (Ageing)
  • Certificate III in Individual Support (Disability)
  • Certificate III in Individual Support (Home and Community)
  • Certificate III in Individual Support (Ageing, Home and Community)
  • Certificate IV in Disability
  • Diploma in Early Childhood Education and Care
  • Provide first aid
  • Provide Cardiopulmonary resuscitation (CPR)

You are registered to provide these courses anywhere in Australia

Relevant legislative provisions

A New Tax System (Goods and Services Tax) Act 1999 section 9-5

A New Tax System (Goods and Services Tax) Act 1999 section 38-85

Reasons for decision

Summary

These courses are GST-free under section 38-85 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) as they are tertiary courses. Therefore, GST is not payable on the supply of these courses.

Detailed reasoning

Under section 9-5 of the GST Act, you make a taxable supply if:

·         you make the supply for consideration

·         the supply is made in the course or furtherance of an enterprise that you carry on

·         the supply is connected with Australia, and

·         you are registered, or required to be registered for GST.

However, the supply is not a taxable supply to the extent that it is GST-free or input taxed.

A supply of an education course is GST-free under section 38-85 of the GST Act. Education course is defined in section 195-1 of the GST Act to mean, amongst other things, a tertiary course.

Tertiary course

Tertiary course is defined in section 195-1 of the GST Act and includes a course of study or instruction that is a tertiary course determined by the Education Minister under subsection 5D(1) of the Student Assistance Act 1973.

Education Minister's Determination

The Education Minister has determined under the Student Assistance (Education Institutions and Courses) Determination 2019 that a VET course provided by an RTO is a tertiary course.

Definitions of both RTO and VET course are provided in the determination as follows:

RTO:

registered training organisation means a training organisation that is registered on the National Register as a registered training organisation.

VET course:

VET course has the meaning that term is given in section 3 of the National Vocational Education and Training Regulator Act 2011.

Section 3 of the National Vocational Education and Training Regulator Act 2011 states:

VET course means:

(a)          the units of competency of a training package that is endorsed by the Ministerial Council; or

(b)          the modules of a VET accredited course; or

(c)          the modules of a course accredited by a VET Regulator of a non-referring State.

In your case, you are an RTO and the following VET courses are within the scope of your RTO registration:

·                     Certificate III in Early Childhood Education and Care

·                     Certificate III in Individual Support

·                     Certificate III in Individual Support (Ageing)

·                     Certificate III in Individual Support (Disability)

·                     Certificate III in Individual Support (Home and Community)

·                     Certificate III in Individual Support (Ageing, Home and Community)

·                     Certificate IV in Disability

·                     Diploma in Early Childhood Education and Care

·                     Provide Cardiopulmonary resuscitation (CPR)

·                     Provide first aid

Therefore, your supplies of these courses are GST-free supplies of tertiary courses. Hence, GST is not payable on your supplies of these courses


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