Edited version of private advice

Authorisation Number: 1052057923767

Date of advice: 6 December 2022

Ruling

Subject: GST and education

Question 1

Is the program (Course) supplied by Entity A a GST-free supply under section 38-85 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?

Answer

No, the Course supplied by Entity A in not a GST-free supply under section 38-85 of the GST Act.

This ruling applies for the following period:

1 November 20XX till quarter ending 31 December 20XX

The scheme commences on:

1 November 20XX

Relevant facts and circumstances

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

• the ten-week draft lesson plan (Lesson Plan)
• End of Term Report (End of Term Report)

Entity A provides education services to children which focuses on developing their communication skills with courses such as public speaking, drama, debating and creative writing.

Entity A is registered for GST.

Entity A is registered as an education body with the relevant state Department.

Entity A's programs aim is to provide students with the soft skills and resilience they need to confidently navigate transition in their lives.

Entity A offers a talent development program (the Course). The Course is delivered to children from 5 to 17 years old with no experience or prerequisite needed to enrol.

The Course is not specifically designed for students will an illness or disability. Rather it is available for all students who fall within the age requirements to enrol.

The Course combines public speaking, creative writing, debating and drama activities to complement and enhance the academic learning that takes place in schools. For the purposes of the private ruling request the Course Lesson Plan has been provided which sets out the schedule and material covered.

The Couse is delivered either online or as an in-person class with a holiday program also available.

The consideration (Fees) payable for the Course vary depending on:

• whether it is supplied online, in-person or over the holiday period.
• The age/year level of the student

After each term of classes, students receive a certificate and a report on their progress.

The teacher/coach of Entity A maintains, and reports evidence of student development and achievement and the reports (End of Term Reports) are shared with the parents. For the purposes of the private ruling request an End of Term Report has been provided.

The End of Term Report identifies the 'Date', 'Class', 'Student Name' and 'Teacher' details. In addition, it includes a table with the skill being assessed together with a teacher rating and comments. The Public Speaking Rubric used by Entity A in assessment of students is derived from the one generally used by schools.

The Couse is accepted by the National Disability Insurance Scheme (NDIS) for individual skill development & training.

The Course also incorporates the following in accordance with the relevant States Education Standards English Curriculum:

• Communicate through speaking, listening, reading, writing, viewing and representing.
• use language to shape and make meaning according to purpose, audience and context.
• think in ways that are imaginative, creative, interpretative, and critical.
• express themselves and their relationship with others and the world.
• learn and reflect on their learning.

Entity A is not a pre-school, primary school or secondary school, but rather a community organisation that aims to build social skills through communication and aid wellbeing in students.

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

Section 38-85 of the GST Act provides that a supply is GST-free if it is either:

(a)  a supply of 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 the GST Act, which states:

education course means:

(a) a *pre-school course; or

(b) a *primary course; or

(c) a *secondary course; or

(d) a *tertiary course; or

(e) (Repealed by No 143 of 2007)

(f) a *special education course; or

(g) an *adult and community education course; or

(h) an *English language course for overseas students; or

(i) a *first aid or life saving course; or

(j) a *professional or trade course; or

(k) a *tertiary residential college course.

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

In this case the Course provided by Entity A does not meet the definition of an 'education course' listed in paragraph (d) to (k) above. Therefore, what remains to be considered is whether the Course falls within the definition of an education course listed in paragraph (a) to (c) above.

Paragraph 14 in Goods and Services Tax Ruling GSTR 2000/30 Goods and services tax: supplies that are GST-free for pre-school, primary and secondary education courses (GSTR 2000/30) provide that the term 'school' means an institution that supplies pre-school courses, primary courses, secondary courses or special education.

In this case you are not considered a pre-school, primary school or secondary school. Therefore, the Course provided by Entity A will not fall in paragraph (a) to (c) of the abovementioned definition of an "education course".

As the Couse supplied by Entity A is not considered an education course, section 38-85 of the GST Act does not apply.