Edited version of private advice

Authorisation Number: 1052042207336

Date of advice: 7 October 2022

Ruling

Subject: GST and education course

Question

Is the supply by Entity A (you) of the Certificate IV in XX (the Course) 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 the Course is a GST-free supply.

This ruling applies for the following period:

1 October 20XX till quarter ending 31 December 20XX

The scheme commences on:

1 October 20XX

Relevant facts and circumstances

The description of the scheme is based on information provided by the applicant in the following documents, which are to be read in conjunction with the facts as set out below:

• Certificate IV in XX identifying amongst other details, the qualification and unit competencies.
• A sample copy of a Proposal and Quote.

Entity A (you) carry on a business of providing education and training and is registered for GST.

You are engaged by entities, such as employers as well as contractors to deliver the Certificate IV in XX (the Course).

You are a registered training organisation and approved by relevant statutory authority to deliver the Course to participants.

The Course consists of 14 core units and 3 elective units, which are delivered to the enrolled participant.

You receive consideration (i.e. payment) for providing the Couse from the employer or contractor.

Relevant legislative provisions

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

Reasons for decision

Question

Is the supply by Entity A (you) of the Certificate IV in XX (the Course) 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 the Course is a GST-free supply.

Detailed reasoning

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.

*denotes a defined term in section 195-1 of the GST Act.

Section 195-1 of the GST Act defines the term 'education course' and includes, 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 Student Assistance Minister has determined is a tertiary course for the purposes of this Act.

Paragraph (b) of the definition of a tertiary course allows the Student Assistance 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 Student Assistance Minister's determination and the recipient is enrolled in that part, the supply of that part is GST-free.

In this case you are an RTO which supplies units drawn from within your scope of registration. As such the supply of the Course falls within the meaning of a VET and/or tertiary course.

As you a making a supply of a tertiary course, you satisfy the meaning of education course under section 38-85 of the GST Act and consequently your supply of the Couse is a GST-free supply.