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Edited version of private advice
Authorisation Number: 1052375359147
Date of advice: 26 March 2025
Ruling
Subject: GST - educational services
Question 1
Is GST payable by you under section 9-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) on your supplies of specified e-learning programs?
Answer 1
Yes.
Question 2
Is GST payable under section 9-5 of the GST Act on your supply of a specified e-learning program which has a face-to-face component?
Answer 2
No.
Question 3
Is GST payable under section 9-5 of the GST Act on your supply of the specified workshops?
Answer 3
No.
Relevant facts and circumstances:
You are a non-profit body based in Australia and are registered for GST.
You provide a range of learning programs.
You are a Registered Training Organisation (RTO). Some of your learning programs are within the scope of your RTO registration and the others are not. The subject of this ruling are those that are not within the scope of your RTO registration.
For the purposes of this ruling, the students who undertake your learning programs are in Australia when they undertake these programs.
Your focus is to provide training and education for adults in a particular industry. It is also to provide a professional learning pathway for people in the industry to formalise and expand their knowledge, gain recognition and gain professional VET qualifications. You do this by providing a range of education from introductory learning programs, through to recognised trade qualifications.
The e-learning programs and workshops are aimed at encouraging those already working in the relevant industry to undertake some basic learning and fuel their desire to continue the learning/training pathway toward a recognised qualification in the relevant trades.
You market all your learning programs through industry newsletters and magazines, social media platforms and your website.
According to your website, your objective is to provide learning programs to meet industry needs.
You charge a fee for all the courses that are the subject of this ruling
Information on your e-learning programs
The promotional material on your website sets out the program outlines and objectives of each e-learning program. The website information on each e-learning program sets out the work-related skills that would be imparted to the student.
The website information specifies the number of CPD points a student would be eligible for on completion of an e-learning program.
One e-learning program includes a face-to-face component.
Target market of e-learning programs
Your focus centres on the relevant industry to:
• address skill shortages
• further upskill those already working in the industry,
• provide a pathway to obtaining / receiving VET recognised qualification
The e-learning programs have no prerequisites, and your website does not state that only people from a particular segment of the community can do the e-learning programs. The e-learning programs are available to any adult; there are no restrictions on who can do the e-learning programs.
How your e-learning programs are delivered
Your e-learning programs are self-paced software programs without any instruction, support, assessment, supervision or feedback from a teacher, facilitator or supervisor (with the exception of one program).
In regard to e-learning programs other than the one with a face-to-face component, the following is the case:
• the student may contact you if they have queries about the course material and you could then put them in touch with a subject expert who could provide assistance, but this has never happened in the past and it is unlikely that a person doing an e-learning program would seek such assistance.
How e-learning works:
• Student goes to your website.
• Selects e-learning program
• Pays via card
• They create an account/ login
• Complete the lessons for the e-learning program
• Answer some knowledge quiz questions throughout
• Once complete they automatically (system generated) have access to a certificate of completion.
The e-learning program with a face-to-face component is designed to comprise of two parts (Part I and Part II). Part I is delivered entirely by way of the e-learning method (that is, learning is via a self-paced software programs without any instruction, support, assessment, supervision or feedback from a teacher, facilitator or supervisor). Part II is face to face practical on-site training and it includes an assessment of the students' capability by a third-party company, who may choose to employ the student as a result of satisfactory assessment. Part II is optional for the student.
Regarding e-learning topics
Each e-learning outline contains details of what topics will be covered.
Relationship of your e-learning programs to VET system
Topics chosen to be delivered via e-learning align to different units of competency delivered in formal VET qualifications.
Regarding the certificates of completion for e-learning programs
Certificates of completion are issued to people who have successfully completed an e-learning program, but it is not a formal qualification.
These certificates are not imposed:
• by or under an award, order, determination or industrial agreement in force under an Australia law or
• by a professional or trade association,
as a requirement to enter, or commence the practice of, a particular profession or trade in Australia and do not lead to such qualifications so imposed.
Information on your workshops
The promotional material on your website sets out the workshop outlines and objectives of each workshop. The website information on each workshop sets out the work-related skills that would be imparted to the student.
Target market of workshops
Your focus centres on the relevant industry to:
• address skill shortages
• further upskill those already working in the industry,
• provide a pathway to obtaining / receiving VET recognised qualifications
The workshops have no prerequisites, and your website does not state that only people from a particular segment of the community can do the workshops. The workshops are available to any adult; there are no restrictions on who can do the workshops.
How the workshops are delivered
Some workshops are delivered online (via teleconferencing).
Some of the workshops are delivered face to face/in person/in a classroom.
Each of the workshops is presented/facilitated by an expert to a group of students. Each workshop is interactive and engages the students to learn and also discuss/explore set topics which are learned in a pre-determined order.
Regarding workshop topics
Each workshop outline contains details of what topics will be covered.
Relationship of your workshops to VET system
Topics chosen to be delivered via workshops align to different units of competency delivered in formal VET qualifications.
Regarding the certificates of attendance for workshops
Certificates of attendance are issued to people who have attended a workshop, but it is not a formal qualification.
These certificates are not imposed:
• by or under an award, order, determination or industrial agreement in force funder an Australia law or
• by a professional or trade association,
as a requirement to enter, or commence the practice of, a particular profession or trade in Australia and do not lead to such qualifications so imposed.
The following information relates to each of the learning programs that are the subject of this ruling
Indicator of students' current employment in relevant industry
Students provide their email address to you when they purchase a learning program and the business names that appear in these email addresses indicate that many of those students already work in the relevant industry. For example, an email may include the name of a company that operates a particular type of business.
Employers of students
Sometimes an employer may pay the fee for a learning program on behalf of their employee (a student). However, this is a matter entirely between the employee/student and their employer. Your relationship is with the student only. You do not provide the learning programs solely at the request of students' employers.
X membership
You do not provide the learning programs solely to your members or solely at the request of organisations to members of those organisations, although a portion of your students are members of X. A student is not required to be a member of X to undertake any of your learning programs.
No private tuition
You do not provide training by way of private tuition. You do not provide one-on-one training to a student. You do not provide personalised classes to a student or students. Each e-learning program/workshop has a set pre-determined structure.
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 paragraph 38-85(a)
A New Tax System (Goods and Services Tax) Act 1999 section 195-1
Reasons for decisions
Summary
Your learning programs that are delivered entirely by way of the e-learning delivery method are not considered to be courses of education. Therefore, the supply of these programs is not GST-free as an education course.
The e-learning program that has a face-to-face component and the workshops are courses of education, for GST purposes. As these courses of education meet the definition of adult and community education course under the GST Act, the supply of these courses is GST-free as education courses as defined in the GST Act.
Detailed reasoning
GST is payable on any taxable supply that you make.
You make a taxable supply if you meet the requirements of section 9-5 of the GST Act, which states:
You make a taxable supply if
(a) the supply is made for *consideration; and
(b) the supply is made in the course or furtherance of an *enterprise that you *carry on; and
(c) the supply is *connected with the indirect tax zone (which includes Australia), and
(d) you are *registered or *required to be registered.
However, the supply is not a *taxable supply to the extent that it is *GST-free or *input
taxed.
(*Denotes a term defined in section 195-1 of the GST Act)
All of the learning programs that are the subject of this ruling meet the requirements of paragraphs 9-5(a) to 9-5(d) of the GST Act. That is:
• you supply them for consideration (a price)(paragraph 9-5(a)); and
• you supply them in the course or furtherance of an enterprise that you carry on (paragraph 9-5(b)); and
• your supplies of these courses are connected with Australia (paragraph 9-5(c)); and
• you are registered for GST (paragraph 9-5(d))
There are no provisions of the GST Act under which your supply of the learning programs is input taxed.
Therefore, what remains to be determined is whether your supply of the learning programs are GST-free.
Paragraph 38-85(a) of the GST Act provides that a supply of an education course as defined in the GST Act is GST-free.
Section 195-1 of the GST Act states:
education course" means:
(a) a *pre-school courses; or
(b) a primary course; or
(c) a *secondary course; or
(d) a tertiary course; or
(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 lifesaving course; or
(j) a *professional or trade course' or
(k) a *tertiary residential college course.
The relevant education courses that will be examined further are a 'professional or trade course', a 'tertiary course' and 'an adult and community education course'.
Meaning of professional or trade course
Section 195-1 of the GST Act defines professional or trade course as a course leading to a qualification that is an essential prerequisite:
(a) for entry to a particular profession or trade in Australia; or
(b) to commence the practice of (but not to maintain the practice of) a profession or trade in Australia.
Section 195-1 of the GST Act defines essential prerequisite as follows:
"essential prerequisite": a qualification is an essential prerequisite in relation to the entry to, or the commencement of the practice of, a particular profession or trade if the qualification is imposed:
(a) by or under an industrial instrument; or
(b) if there is no industrial instrument for that profession or trade, but there is a professional or trade association that has uniform requirements relating to the entry to, or the commencement of the practice of, the profession or trade - by that association; or
(c) if neither paragraph (a) nor (b) applies but there is a professional or trade association in a State or Territory that has requirements relating to the entry, or to commencement of the practice of, the profession or trade concerned - by that association.
Paragraph 50 of Goods and Services Tax Ruling GSTR 2003/1 Goods and services tax: professional or trade courses defines industrial instrument. It states:
50. An 'industrial instrument' is defined in section 195-1 as having the meaning given by section 995-1 of the Income Tax Assessment Act 1997 ('ITAA 1997') which states: 'industrial instrument means: (a) an Australian law; or (b) an award, order, determination or industrial agreement in force under an Australian law.
Paragraph 22 of GSTR 2003/1 discusses the first requirement for a learning program to be a professional trade course - that is, it would need to be a course of education. The paragraph states:
What is a course?
22. Whether you supply a course is a question of fact. In the context of the definition of a 'professional or trade course' in section 195-1, a course is a program of systematic and interactive instruction or training, for the acquisition of particular skills or knowledge. Indicators of a course include, but are not limited to:
• delivery of educational instruction through an instructor or teacher;
• ongoing support and guidance, for example, being available to answer questions;
• assessment of the individual's progress;
• monitoring or supervision;
• provision of feedback concerning the individual; and
• assessment of competency or satisfactory completion at the end of the program of instruction.
Paragraph 23 of GSTR 2003/1 states:
23. The definition of professional or trade course in section 195-1 does not require that the instruction or training be of a specified length or time. The length of the program of instruction or training is not determinative of whether it is a course for the purposes of the definition.
Paragraphs 34 to 36 of GSTR 2003/1 explain the 'leading to' requirement. They state:
34. We consider that the words 'leading to' require a causal connection between the course that is undertaken and the qualification that is ultimately obtained.
35. We also consider that a causal connection exists where there is a sufficiently direct and demonstrable link or connection between the course and the qualification.
36. The qualification must result from, and will follow successful completion of the course.
Meaning of tertiary course
Tertiary course is defined in section 195-1 of the GST Act.
"tertiary course" means:
(a) a course of study or instruction that is a tertiary course determined by the *Student Assistance Minister under subsection 5D 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.
In accordance with Student Assistance (Education Institutions and Courses) Determination 2019, courses provided by an RTO that are within the scope of the RTO registration are tertiary courses.
Meaning of Adult and Community Education course
Adult and community education course is defined in section 195-1 of the GST Act.
"adult and community education course" means 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 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.
Paragraph 15 of Goods and Services Tax Ruling GSTR 2000/27 Goods and services tax: adult and community education courses; "meaning of likely to add to employment related skills" (GSTR 2000/27) states:
15. The test as to whether an adult and community education course is likely to add to the employment related skills of people undertaking the course is an objective test and not dependent on the subjective intention of the providers of the course or the recipients. However we consider a course satisfies the test if the course meets the following requirements:
(a) It is directed at people who want to add to their employment related skills; and
(i) The objectives of the course specify the employment related skills that participants will acquire in undertaking the course; and
(ii) The means of imparting the skills to the participants are clearly identified prior to the commencement of the course; and
(iii) There is a reasonable expectation that the skills being developed will be used. In the course of being an employee, or working in a business, occupation, profession or trade, rather than for recreational, hobby, artistic or cultural endeavours.
Further, paragraph 16 of GSTR 2000/27 states:
16. In addition to the criteria outlined in paragraph 15, you should also consider the following:
(a) How the course is marketed.
A course that markets the employment related skills that will be acquired by undertaking the course will support your conclusion that the course will, on the balance of probabilities, add to the employment related skills of the participants.
(b) Whether the course is similar to an accredited vocational education and training (VET) program.
If you can clearly demonstrate that a majority of the course content is the same as part or all of a recognised VET program, this factor will support your contention that the course is likely to add to employment related skills of people undertaking the course.
(c) The outcomes of the course.
If you can present evidence that the majority of people undertaking your course are gaining employment relevant to the skills they have acquired in the course, this would also demonstrate that the course is likely to add to the employment related skills of people undertaking the course. There must be a reasonable expectation that the course is going to "add to the employment related skills of people undertaking the course".
The Education Minister has determined courses of study or instruction that are adult and community education courses in the A New System (Goods and Services Tax) (Adult and Community Education courses) Determination 2016 (ACE Determination).
At subsection 5(2) of the ACE Determination, the Education Minister states that a course of study or instruction must:
(a) not be any other education course defined in section 195-1 of the GST Act; and
(b) be available to adults in the general community; and
(c) not be provided by or at the request of an employer to employees of that employer; and
(d) not be provided by or at the request of an organisation to members of that organisation, except an organisation for which membership is open to adults in the general community; and
(e) not be a course that is provided by way of private tuition to an individual.
Question 1
Is GST payable on your supply of learning programs that are delivered entirely by way of the e-learning method?
Your e-learning programs are self-paced software programs without any instruction, support, assessment, supervision or feedback from a teacher, facilitator or supervisor (with the exception of the e-learning program that has a face-to-face component). As such, we do not consider the e-learning programs (other than the one with a face-to-face component) courses of education. Therefore, your supply of e-learning programs (other than the one with a face-to-face component) are not professional or trade courses for the purposes of the GST Act.
The Australian Taxation Office considers that the principle in GSTR 2003/1 that a learning program must be a course of education to potentially be a professional or trade course also applies to determining whether a learning program is an education course under other parts of the definition of education course in the GST Act. Therefore, as your learning programs that are delivered entirely via the e-learning delivery method are not courses of education, they cannot be tertiary courses or Adult and Community Education courses.
Hence, none of the e-learning learning programs (other than the one that has a face-to-face component) meet the definition of education course in the GST Act. Therefore, your supplies of these e-learning programs are not GST-free under section 38-85 of the GST Act. As all of the requirements of section 9-5 of the GST are met, your supply of e-learning programs (other than the one with a face-to-face component) are subject to GST.
Question 2
Is GST payable on your supply of the e-learning program with a face-to-face component?
Although this learning program is an e-learning program, it also has an onsite training component (Part 2), which includes an assessment of the students' capability by a third-party company. Additionally, knowledge of a particular subject is imparted to the student, which involves the student studying set topics in a pre-determined order. Therefore, we accept that this learning program is a course of education. It is a program of systematic and interactive instruction or training, for the acquisition of particular skills or knowledge.
Whether the program is a professional or trade course
The certificate of completion you issue for this program is not a qualification imposed:
• by or under an award, order, determination or industrial agreement in force under an Australia law or
• by a professional or trade association,
as a requirement to enter, or commence the practice of, a particular profession or trade in Australia and the course does not lead to such a qualification that is so imposed.
Therefore, this program is not a professional or trade course.
Whether the course is a tertiary course
While you supply a number of courses that are within the scope of your RTO registration, the e-learning program with the face-to-face component is not within that scope. Therefore, this program is not a tertiary course.
Whether the course is an Adult or Community Education course
We have established that the e-learning program with the face-to-face component is a course of education (see earlier discussion about this above).
Likely to add to employment related skills of students
Paragraphs 32 and 33 of GSTR 2000/27 consider whether a particular course is likely to add to the employment related skills of people undertaking the course. They state:
Example - Occupational Rehabilitation for Return to Work Co-ordinators
32. The Randall TAFE college offers a course titled "Occupational Rehabilitation for Return to Work Coordinators". The course is targeted at both experienced and inexperienced Return to Work Coordinators, Work Cover Claims Officers, Managers, Supervisors and Human Resource Managers in small or large organisations.
33. This course is aimed at participants already involved in the workforce and completion of this course will enhance their employment related skills. This course is GST-free.
The example in paragraphs 32 and 33 of GSTR 2000/27 demonstrates that even a course that is aimed solely at people already in a particular profession/s can meet the definition of an adult and community education course.
We accept that the e-learning program with the face-to-face component is likely to add to the employment related skills of people undertaking the program given the following:
• It is directed at people who want to add to their employment related skills. This is demonstrated by the promotional information on your website, for example, the following statement:
XXXX
• Additionally, as part of the program, students are assessed by a company for suitability to work for them in this field.
• The objectives of the program specify the employment related skills that participants will acquire in undertaking the program, that is, doing a certain sort of work. These skills learned in this program would clearly aid a student in obtaining employment in this field, as the program includes a component which involves a company assessing the student's suitability to work for them in this field.
• The means of imparting the skills are set out on your website. It states, for example:
XXXX
• There is a reasonable expectation that the skills being developed will be used in the course of being an employee, or working in a business, occupation, profession or trade, rather than for recreational, hobby, artistic or cultural endeavours. This is demonstrated by your website material, for example, the program provides a potential pathway for students to work for a company and the website material also states:
XXXX.
• Based on your website material, the program markets the employment related skills that will be acquired by undertaking the program, that is, skills in a certain area of work. The marketing on your website promotes the program to businesses in the relevant industries and promotes the program as being a potential pathway to working for a business in the relevant industry.
• This program aligns to a unit of competency delivered in formal VET qualifications.
• Although you do not have proof that a person doing the programs that are the subject of this ruling obtain a job as a result of doing these programs, the email addresses of students doing your programs suggest that many people who do these programs are already working in the relevant industry.
Course must not be any other type of education course
Your e-learning program that has a face-to-face component is not any other education course defined in section 195-1 of the Act.
Course available to adults in the general community
Your website suggests that people in certain industries would benefit from completing the e-learning program that has a face-to-face component.
Although this program is focusing mainly on people already in certain industries, such as a particular industry, this does not mean that the program is not available to adults in the general community.
As the programs have no prerequisites, and your website does not state that only people from a particular segment of the community can do the programs and the programs are available to any adult; there are no restrictions on who can do the programs, we consider that the programs are available to adults in the general community.
Course must not be provided at request of employers to employees of those employers
You are not providing the e-learning program with the face-to-face component to your employees.
Sometimes an employer may pay the fee for a program on behalf of their employee (a student). However, this is a matter entirely between the employee/student and their employer. Your relationship is with the student only. You do not provide the programs solely at the request of students' employers.
Courses provided to members of organisations
You do not provide the e-learning program with the face-to-face component solely to your members or solely at the request of organisations to members of those organisations, although a portion of your students are members of X. A student is not required to be a member of X to undertake any of your programs.
Course must not be provided by way of private tuition
The program is not provided by way of private tuition to an individual.
Supplier of course must have any one of certain statuses
RTO's are recognised, by a State or Territory authority, as providers of courses of a kind described in the ACE determination and you are an RTO. Therefore, you meet the requirement of subparagraph (a)(i) of the definition of adult and community education course in section 195-1 of the GST Act.
Conclusion
Your e-learning program that has a face-to-face component is an adult and community education course as:
• it is a course for GST-purposes; and
• it is likely to add to the employment related skills of people doing the course; and
• it meets the requirements of the ACE determination; and
• you have the necessary status.
As this program meets all of the requirements of the adult and community education course definition, you are making a GST-free supply of an education course under section 38-85 of the GST Act. Therefore, GST is not payable on your supply of this program.
Question 3
Is GST payable on your supply of the workshops?
Whether the workshops are professional or trade courses
This workshops are delivered online (via teleconferencing) or face to face. They are presented/facilitated by an expert to a group of students. The workshops are interactive and engage the students to learn and also discuss/explore set topics that are studied in a pre-determined order. Therefore, we accept that the workshops are courses of education. They are programs of systematic and interactive instruction or training, for the acquisition of particular skills or knowledge.
The certificate of attendance you issue for the workshops is not a qualification imposed:
• by or under an award, order, determination or industrial agreement in force under an Australia law or
• by a professional or trade association,
as a requirement to enter, or commence the practice of, a particular profession or trade in Australia and the course does not lead to such a qualification that is so imposed.
Therefore, the workshops are not professional or trade courses.
Whether the workshops are tertiary courses
The workshops are not within the scope of your RTO registration. Therefore, they are not tertiary courses.
Whether the workshops are Adult and Community Education courses
Likely to add to employment related skills of students
We shall now consider whether the factors in paragraphs 15 and 16 of GSTR 2000/27 are present in relation to the workshops to a sufficient extent, such that we can conclude that they are likely to add to the employment related skills of people undertaking the workshops.
It is clear from reading the marketing materials on your website and other information you provided that the workshops are likely to add to the employment related skills of people doing the course. This is explained below.
According to your website, your objective is to provide learning programs to meet industry needs.
Based on the website marketing for the workshops, the target market is people already in the relevant industry who wish to improve on the skills relevant to their job.
The skills that the workshops teach would only be used at work or in a business in the relevant industry, for example, staff working in particular occupations. They could not be used for recreational, hobby, artistic or cultural endeavours considering the nature of the skills that are taught.
Each workshop aligns to a unit of competency delivered in formal VET qualifications.
You do not have evidence that a person actually ends up obtaining a job after doing the workshops, but the email addresses of students doing the workshops suggest that many people who do these workshops are already working in the relevant industry.
We shall now consider whether the requirements of the ACE determination are met.
Course must not be any other type of education course, as defined in the GST Act
The workshops are not any other type of education course, as defined in the GST Act.
Course must be available to adults in the general community
As the workshops have no prerequisites, and your marketing material does not state that only people from a particular segment of the community can do these workshops and they are available to any adult/there are no restrictions on who can do these workshops, we consider that they are available to adults in the general community.
Course must not be provided at request of employers to employees of those employers
You are not providing the workshops to your employees.
Sometimes an employer may pay the fee for the workshops on behalf of their employee (a student). However, this is a matter entirely between the employee/student and their employer. Your relationship is with the student only. You do not provide the workshops solely at the request of students' employers.
Courses provided to members of organisations
You do not provide the workshops solely to your members or solely at the request of organisations to members of those organisations, although of a portion of your students are members of X. A student is not required to be a member of X to undertake the workshops.
Course must not be provided by way of private tuition
The workshops are not provided by way of private tuition to an individual.
Therefore, you meet the requirements of the ACE determination.
Supplier of course must have any one of certain statuses
As an RTO, you are recognised, by a State or Territory authority, as providers of courses of a kind described in the ACE determination. Therefore, you meet the requirement of subparagraph (a)(i) of the definition of adult and community education course in section 195-1 of the GST Act.
Conclusion
The workshops that you provide are adult and community education courses because:
• they are courses for GST-purposes; and
• they are likely to add to the employment related skills of people doing the workshops; and
• they meet the requirements of the ACE determination; and
• you have the necessary status.
As the workshops satisfy the definition of an adult and community education course you are making a GST-free supply of an education course under section 38-85 of the GST Act. Therefore, GST is not payable on your supply of the workshops.