Edited version of private advice

Authorisation Number: 1051618815256

Date of advice: 12 December 2019

Ruling

Subject: Goods and services tax (GST) and a supply of an education course

Question

Is a supply of a training program specifically designed for children or students with disabilities by you to children and students with disabilities including those with downs syndrome, dyslexia, autism spectrum disorder, Asperger's syndrome, ADHD, ADD, short term memory deficit, and other diagnosed learning disorders and disabilities subject to GST?

Answer

No, your supply of the training program specifically designed for children or students with disabilities to children and students with disabilities including those with downs syndrome, dyslexia, autism spectrum disorder, Asperger's syndrome, ADHD, ADD, short term memory deficit, and other diagnosed learning disorders and disabilities is GST-free under subsection 38-85(a) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act).

Relevant facts and circumstances

You are an Australian entity which is registered for GST.

The training course offers a complete linear mastery training curriculum from Kinder to Calculus which meets all the requirements of the Australian Training Curriculum.

Your training education course has been developed specifically for children with disabilities and meets all recommendations and incorporates all research-based findings on effective training education.

Your training program is a complete skill-based, multi-sensory training curriculum, with "intervention, special needs, learning difficulties and small group learning environments.

Your training program is structured with step-by-step procedures for introducing, practicing, mastering and reviewing concepts and procedures. This gives the instructor clear understanding of when to move the student to the next level.

Your training program offers a multi-sensory approach to learning and numeracy and is self-paced based on the student's innate learning process, needs and abilities. This includes children with special needs and physical disabilities; learning differences in reading, writing and training; ADHD; and mild-to-moderate autism spectrum disorders.

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

A New Tax System (Goods and Services Tax) Act 1999, Section 195-1

Reasons for decision

GST is payable on a taxable supply. You make a taxable supply if all the requirements of section 9-5 of the GST Act are satisfied as follows:

(a)    you make the supply for consideration;

(b)    the supply is made in the course or furtherance of an enterprise that you carry on;

(c)    the supply is connected with the indirect tax zone (Australia), and

(d)    you are registered or required to be registered.

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

From the facts provided, you satisfy the requirements of a taxable supply under paragraphs 9-5(a) to 9-5(d) of the GST Act as follows:

(a)   you supply of the training program specially designed for children or students with disabilities in return for consideration by way of payments;

(b)   the supply is made in the course of an enterprise (business) that you carry on; and

(c)   the supply is connected with Australia as you are carrying on your enterprise in Australia; and

(d)   you are registered for GST.

Thesupply of the training program specially designed for children or students with disabilities by you to children and students with disabilities including those with downs syndrome, dyslexia, autism spectrum disorder, Asperger's syndrome, ADHD, ADD, short term memory deficit, and other diagnosed learning disorders and disabilities will be a taxable supply to the extent that it is not GST-free or input taxed.

The supply of the training program specifically designed for children or students with disabilities by you to children and students with disabilities is not input taxed under any provisions of the GST Act or any other legislation.

The next step is to determine whether the supply of the training program specifically designed for children or students with disabilities by you to children and students with disabilities is GST-free.

GST-free

Under subsection 38-85(a) of the GST Act, the supply of an education course is GST-free.

Education course is defined in section 195-1 of the GST Act to include a special education course.

Goods and services tax ruling GSTR 2002/1 explains the definition of the term 'special education course' in section 195-1 of the GST Act.

The term special education course is defined in section 195-1 of the GST Act as a course that meets the following requirements:

·        it is a course of education

·        it provides special programs, and

·        the special programs are designed specifically for children with disabilities or students with disabilities (or both).

Each of the above courses is further defined under section 195-1 of the GST Act.

All special education courses are GST-free, regardless who supplies the course or where the supply is made.

Whether a course is GST-free will depend on the attributes of the course and not on status of the provider of the course.

Course of education

GSTR 2002/1 states that 'course of education' should be given a wide meaning to include a course or program of study involving systematic instruction, training or schooling in areas of scholastic or academic pursuits which is delivered to a group of children or students or to an individual child or student in the form of a series of lessons or classes and must have elements of interactive teaching.

Based on the information provided, your training program specially designed for children or students with disabilities is structured with step-by-step procedures for introducing, practicing, mastering and reviewing concepts and procedures. Your training program is designed to provide an effective learning tool for students ranging from the solitary home-schooled student, children with disabilities through to small group tutorial classes and larger classroom groups. Accordingly the first requirement t (i.e. a course of education) is satisfied.

Special program

Paragraphs 19 & 20 of GSTR 2002/1 state:

19    A program is a special program if it is:

·        designed specifically to meet the special needs of children or students with disabilities

·        designed specifically to reduce or prevent the impact of disabilities for children or students with disabilities, or

·        not made available to people generally.

20    Each and every part of the course if education does not have to be 'special'. However, the program, when looked at in its entirety, needs to be recognised as a special program. For example, the course's content may mirror that of existing curriculum-based course provided in a school, but be delivered in a way that makes it suitable for children or students with disabilities.

Based on the information provided, your training program is designed for children and students with downs syndrome, dyscalculia, dyslexia, autism spectrum disorder, Asperger's syndrome, ADHD, ADD, short term memory deficit, and other diagnosed learning disorders and disabilities and delivered according to an individual learning plan. Therefore we consider that the training program will satisfy the characteristics of a 'special program'.

Designed specifically for children or students with disabilities

To determine whether the program is designed specifically for children or students with disabilities, GSTR 2002/1 applies the following criteria:

·        Evidence of an intention to design a program for children or students with disabilities -an intention to design a program for children or students with disabilities may be demonstrated by material (e.g. marketing material) which provides details as to how a particular disability will be addressed.

·        Character of the program - which may be established by its content, the place where it will be delivered or how it will be delivered.

·        Recipients of the program - A special program needs to be designed specifically for children or students with disabilities. It is not necessary for people with disabilities to be the actual recipients of the program. The special program may include elements that are directed at parents or carers of those children or students.

·        Relevant obligations - Any relevant obligations which the provider of the program may have, e.g. where the program is based on an individual education plan which is used to substantiate proper use of government funding for the education of children with disabilities.

A special education course must be designed specifically for either children with disabilities (regardless of whether they are students) or students with disabilities (regardless of age).

Child or student

GSTR 2002/1 states that a child is someone who has not yet attained the age of eighteen and a student is a person of any age who is enrolled on a part-time or full-time basis in a course or program of study involving systematic instruction, training or schooling in the areas of scholastic and academic pursuits, vocational skills or personal development.

The facts indicate that your training program is a complete multi-sensory program which is provided to students who has learning difficulties. Therefore you are providing the training program for children or students.

Disability

GSTR 2002/1 also provides guidance on the meaning of 'disability'. GSTR 2002/1 refers to the World Health Organisation's International Classification of Functioning Disability and Health which states that 'disability' is an umbrella term for impairments, activity limitations and participation restrictions, and states

Children or students with disabilities are those children or students who have a functional or structural impairment that causes them difficulty in executing activities or problems involving life situations. This would include, but is not limited to, conditions that may be diagnosed under the following broad headings:

·        learning disabilities/specific learning difficulties (including dyslexia);

·        autism spectrum disorder;

·        physical disabilities;

·        emotional disorders;

·        language disorders;

·        hearing impairments;

·        visual impairments;

·        intellectual disabilities.

Facts indicates that your training program is for specifically for children and students with disabilities in the areas of training understanding - including those with downs syndrome, dyscalculia, dyslexia, autism spectrum disorder, Asperger's syndrome, ADHD, ADD, short term memory deficit, and other diagnosed learning disorders and disabilities.

The holistic training education course is significantly different from those provided by traditional disability education providers. The training program meets all recommendations for Tier 3 Intervention and incorporates all research-based findings on effective training education course for special needs students using a hands-on and multi-sensory framework.

You stated that your training program is a powerful intervention tool proven to successfully reach and teach students who are at-risk or have learning disabilities. You modify your training program to meet the special needs caused by various disabilities.

Therefore your training program is designed specifically for students with disabilities.

Summary

Based on the facts provided, the supply of the training program by you is a special education course because:

·        it is course of education

·        it is special program; and

·        it is designed specifically for children or students with disabilities.

Accordingly, the supply of your training program specially designed for children or students with disabilities to children and students with disabilities including those with downs syndrome, dyslexia, autism spectrum disorder, Asperger's syndrome, ADHD, ADD, short term memory deficit, and other diagnosed learning disorders and disabilities Is GST-free supply of education course under subsection 38-85(a) of the GST Act.Therefore, GST is not payable on your supply of the training program to children and students with disabilities.