Edited version of private advice

Authorisation Number: 1052041475703

Date of advice: 5 October 2022

Ruling

Subject: GST and education course

Question

Are the courses listed below supplied by an RTO a supply of education courses that is GST-free in accordance with section 38-85 of A New Tax System (Goods and Services Tax) Act 1999(GST Act):

•         Certificate III in Business

•         Certificate IV in Business

•         Certificate IV in Leadership and Management

•         Diploma of Business

•         Diploma of Leadership and Management

•         Advance Diploma of Business

•         Advanced Diploma of Leadership and Management

•         Graduate Diploma of Management (Learning)

•         Certificate IV in Procurement and Contracting

•         Certificate III in Outdoor Leadership

•         Certificate IV in Outdoor Leadership

•         Diploma of Outdoor Leadership

Answer

Yes, the training courses listed and provided by the RTO are a supply of GST-free education courses in accordance with section 38-85 of the GST Act.

Relevant facts and circumstances

This private ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are different from these facts, this private ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling.

The RTO is a registered Australian company.

You have been registered with an ABN and registered for GST.

You trade under the business name XXX.

You, as an RTO, supply the following education courses:

•         Certificate III in Business

•         Certificate IV in Business

•         Certificate IV in Leadership and Management

•         Diploma of Business

•         Diploma of Leadership and Management

•         Advanced Diploma of Business

•         Advanced Diploma of Leadership and Management

•         Graduate Diploma of Management (Learning)

•         Certificate IV in Procurement and Contracting

•         Certificate III in Outdoor Leadership

•         Certificate IV in Outdoor Leadership

•         Diploma of Outdoor Leadership

The above courses have received accreditation from the Australian Skills Quality and Assurance (ASQA) regulator.

Relevant legislative provisions

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

Reasons for decision

Section 38-85 of the GST Act discusses the supply of education courses. In particular it 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.

The term 'education course' is defined in section 195-1 of theGST Act to include, amongst other things, a tertiary course. The term tertiary course is defined in section 195-1 and means:

(a)  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 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 Education Minister has determined is a tertiary course for the purposes of this Act.

Paragraph (b) of the definition of a tertiary course allows the Education Minister to determine, independently of the requirement set out in paragraph (a), that a course is a tertiary course as defined in section 195-1.

Student Assistance Minister's Determination

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

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

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

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.

A tertiary course generally consists of component parts that are commonly referred to as 'subject', 'course', 'module', 'unit' or 'program'. Where you supply a component part of a tertiary course that is covered by the Education Minister's determination and the recipient is enrolled in that part, the supply of that part is GST-free.

Therefore, when you supply modules or units drawn from within your scope of registration as an RTO, the supply will be GST-free as a tertiary course.

You are an RTO and the accredited courses that are from within your scope of registration as an RTO satisfy the definition of a tertiary course and/or VET courses and are therefore GST-free.