Edited version of private advice

Authorisation Number: 1052303473874

Date of advice: 16 September 2024

Ruling

Subject: GST - supply of an education course

Question 1

Are the educational courses that you supply GST-free under section 38-85 of the A New Tax System (Goods and Services) Tax Act 1999 (GST Act)?

Answer 1

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

Relevant facts and circumstances

Company X (you) is registered for goods and services tax (GST). You do not operate on a not-for-profit basis.

You are not accredited with the Australian Skills Quality Authority (ASQA) as a Registered Training Organisation (RTO).

You use allied health professionals such as Occupational Therapists, Speech Pathologists and Psychosocial Therapists to deliver the course to the educators.

The aim of the course is to build the capacity of educators to better support children with trauma backgrounds, developmental delays and autism spectrum disorder, allowing for successful inclusion in care environments.

The topics for the education courses include:

•                     understanding neurobiology of trauma and impact on children's sensory needs and behaviour

•                     understanding regulation in theory and practice, and

•                     understanding attachment.

Support, feedback and course materials such as a workbook, handouts and certificate of completion, are provided as part of the course.

The courses include a series of sessions that can either be completed as stand-alone single sessions or together.

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 1999section 38-85

A New Tax System (Goods and Services Tax) Act 1999 section 195-1

Reasons for decision

Question 1

Are the educational courses that you supply GST-free under section 38-85 of theGST Act?

Summary

The supply of your professional development education courses delivered by allied health professionals to ECEC professionals do not meet the requirements for being the supply of a GST-free education course under section 38-85 of the GST Act.

Your supplies of these trauma-informed education courses are taxable supplies under section 9-5 of the GST Act.

Detailed reasoning

GST-free

A supply of an education course is GST-free under section 38-85 of the GST Act. Relevant to your circumstances, an education course is defined in section 195-1 of the GST Act to include, among other things:

•                     a tertiary course

•                     a special education course, and

•                     an adult and community education (ACE) course.

Tertiary course

Section 195-1 of the GST Act defines tertiary courseto mean:

(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 this 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 of the purposes of this Act.

The Student Assistance Minister has not determined your courses to be 'tertiary courses', you are not a 'higher education institution' or a 'non-government higher education institution', and you are not accredited with ASQA as an RTO. Therefore, your education courses do not satisfy the requirements to be tertiary courses under section 195-1 of the GST Act.

Special education course

Section 195-1 of the GST Act defines special education courseto mean: a course of education that provides special programs designed specifically for children with disabilities or students with disabilities (or both). The Goods and Services Tax Ruling GSTR 2002/1 Goods and Services tax: supplies that are GST-free as special education courses (GSTR 2002/1) explains the definition of the term.

Paragraph 12 of GSTR 2002/1 provides that a course meets the requirements of the definition of the term 'special education course' if:

•                     it is a course of education

•                     it provides special programs, and

•                     the special programs are designed specifically for children with disabilities or students with disabilities (or both).

Your courses are not designed specifically for children or students with disabilities. The courses are delivered to ECEC professionals, allowing them to be better equipped in supporting children with trauma backgrounds in their care. Paragraph 27 of GSTR 2002/1 states:

27. A course or program that is designed to enhance the skills or knowledge of health or education professionals who work with children or students with disabilities is not a special education course.

Therefore, your courses do not satisfy the requirements to be a special education course under section 195-1 of the GST Act.

Adult and community education course

An adult and community education course(ACE course) is defined in section 195-1 of the GST Act as a course of study or instruction that is likely to add to the employment related skills of people undertaking the course and:

(a)          is of a kind determined by the Student Assistance Minister to be an adult and community education course and is provided by, or on behalf of, a body:

(i)            that is a higher education institution, or

(ii)            that is recognised, by a State or Territory authority, as a provider of courses of a kind described in the determination, or

(iii)            that is funded by a State or Territory on the basis that it is a provider of courses of a kind described in the determination, or

(b)          is determined by the Student Assistance Minister to be an adult and community education course.

As your course is neither of a kind determined by the Student Assistance Minister, nor is it provided by a body specified in the definition, it is not an adult and community education course.

As your supplies of courses do not satisfy the requirements to be a tertiary course, special education course or ACE course, the supply of your courses do not meet the requirements for being the supply of a GST-free education course under section 38-85 of the GST Act. Your supplies of the courses will be subject to GST if they are taxable supplies under section 9-5 of the GST Act which states:

You make a 'taxable supply'if:

(a)          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 the indirect tax zone (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.

The supplies of education courses by you to the ECEC professionals satisfy paragraphs 9-5(a) to 9-5(d) of the GST Act as:

(a)          you make the supplies of the course to ECEC professionals in return for consideration by way of payment

(b)          you make the supply in the course of your business

(c)          the services (courses) are performed/provided in Australia or made through an enterprise that you carry on in Australia (and therefore the supply is connected with Australia), and

(d)          you are registered for GST.

However, section 9-5 of the GST Act also provides that the supply is not taxable to the extent that it is GST-free or input taxed.

Therefore, your supplies of courses are taxable supplies under section 9-5 of the GST Act.