Edited version of private advice

Authorisation Number: 1051861602536

Date of advice: 5 July 2021

Ruling

Subject: GST-free supply of education courses

Question 1

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

Answer 1

No. Your supply of the courses is not a GST-free supply under section 38-85 of the GST Act.

This ruling applies for the following period:

Period ending 30 June 20XX

Relevant facts and circumstances

You are registered for GST.

You are not a Registered Training Organisation (RTO).

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

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

a)            if 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 Australia, and

d)            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.

Your supplies of the courses satisfy the requirements of paragraphs 9-5(a) to 9-5(d) of the GST Act. This is because, you supply the courses for consideration, in the course or furtherance of your enterprise, these supplies are connected with Australia and you are registered for GST.

There are no provisions in the GST Act under which your supplies of the courses are input taxed. Therefore, what remains to be determined is whether your supplies of the courses are GST-free.

In accordance with paragraph 38-85(a) of the GST Act, a supply of an 'education course' is a GST-free supply.

'Education course' is defined in section 195-1 of the GST Act. The definition lists various types of education courses. Of relevance to your case is:

•                    tertiary courses

Tertiary course

Section 195-1 of the GST Act defines tertiary course as:

(a) a course of study or instruction that is a tertiary course determined by the *Student Assistance Minister under subsection 5D(1) of the Student Assistance Act 1973 for the purposes of that Act; or

(aa) a course of study or instruction accredited at Masters or Doctoral level and supplied by a *higher education institution or a *non-government higher education institution; or

(b) any other course of study or instruction that the Student Assistance Minister has determined is a tertiary course for the purposes of this Act.

To be GST-free as a tertiary course, a course must satisfy the Education Minister's determination made under subsection 5D(1) of the Student Assistance Act 1973, namely the Student Assistance (Education Institutions and Courses) Determination 2019 (SAA Determination).

The SAA Determination provides that an accredited vocational education and training program provided by an RTO or a higher education institution is a tertiary course.

You are not an RTO. Further, you are not a higher education institution as defined in the SAA Determination because you are not an institution that was established by a law of the Commonwealth, a State or a Territory as a higher education institution and you are not registered or taken to be registered by TEQSA as a higher education provider.

Therefore, your courses are not tertiary courses under paragraph (a) of the definition of tertiary course in section 195-1 of the GST Act.

Your courses are not tertiary courses under paragraph (aa) of the definition of tertiary course in section 195-1 of the GST Act as they are not Masters or Doctoral level courses.

Your courses are not tertiary courses under paragraph (b) of the definition of tertiary course in section 195-1 of the GST Act. A determination has been made under paragraph (b) of the definition of tertiary course. However, it is not relevant to the supplies that you make.

Hence, your courses are not tertiary courses as they do not fall under the definition of a tertiary course in section 195-1 of the GST Act.

There are no other provisions in the GST Act under which your supplies of the courses are GST-free. Therefore, as all of the requirements of section 9-5 of the GST Act are satisfied, your supplies of the courses are taxable supplies. Hence, GST is payable on your supplies of the courses.