Edited version of private advice

Authorisation Number: 1051786439200

Date of advice: 23 December 2020

Ruling

Subject: Goods and services tax and personal aquatic survival skills courses

Question

Is the supply of your learn to swim courses a GST-free supply under section 38-85 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?

Answer

Yes, the supply of your learn to swim courses is a GST-free supply under section 38-85 of the GST Act.

This ruling applies from

Relevant facts and circumstances

You are registered for goods and services tax (GST). You supply learn to swim courses.

Relevant legislative provisions

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

Reasons for Decision

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

The definition of an education course includes, amongst other things, 'a first aid or life saving course'.

A 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...

b)    is provided by an entity:

                    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...

Personal aquatic survival skills include:

•         Sculling

•         Treading water

•         Floating

•         Safe entry and exit from the water

•         Techniques for clothed swimming survival

•         Use of devices to assist rescue, and

•         Basic swimming skills.

Basic swimming skills prevent people from drowning or enable them to move away from a dangerous situation in the water. We consider that people have acquired all necessary basic swimming skills when they have completed a swimming and water safety program that is consistent with the National Swimming and Water Safety Framework.

The courses you provide consist of skills that are predominantly personal aquatic survival skills. Therefore, it is considered that your course is a course that principally involves training individuals in personal aquatic survival skills.

One of the exceptions to this is if you are instead providing swimming lessons. Swimming lessons are not a first aid or lifesaving course. Typical characteristics of a swimming lesson include but are not limited to:

•         aerobic endurance training and physical conditioning of one or more of the competitive swimming strokes

•         refining racing turns and race starting

•         interval/cycle training

•         combinations of wet and dry land training

•         race strategies and psychological training.

A student taking swimming lessons already has the skills to survive in the water. The main point of the course is to make the student a better swimmer.

Additionally, the course has to be provided by an entity that is listed in paragraph (b) of the definition of a first aid or life saving course in section 195-1 of the GST Act. Subparagraph 195-1(b)(iii) of the GST Act provides for instructors who hold a training qualification for that course that was issued by Austswim Limited.

In your case, the purpose of the courses appears to be focused on helping the student survive in the water and hence the focus on the swim and survive course skills. Your courses that are outlined in the facts are a first aid or lifesaving course. Therefore, you are providing a GST-free lifesaving course under paragraph 38-85(a) of the GST Act.