GST treatment of issues that commonly affect pre-schools

This table provides a summary of the information in this guide. Before deciding on the GST treatment of your supply, you should read the full explanations referred to in this table.


are not subject to GST if:

are subject to GST if:

Education courses

the course is a supply of an education course that includes

  • tuition
  • facilities
  • other curriculum-related activities and instruction.

the amount charged for curriculum-related activities and instruction is paid by the students directly to a service provider (not via the preschool).

Administrative services

they are a supply of administrative services by the provider of the course that are directly related to the supply of an education course.

the administrative services are not provided by the supplier of the course (that is, if they are outsourced).

Course materials

the materials (for example, art supplies) are

  • necessarily consumed or transformed in undertaking the course
  • supplied directly to the students by the preschool.

the materials are either

  • not consumed or transformed in undertaking the course (for example, musical instruments and story books)
  • supplied to the students by a third party
  • goods other than course materials.

Excursions, field trips and visits by external service providers

the excursion or field trip is

  • directly related to the curriculum of an education course
  • not predominantly recreational.

the excursion/field trip is either

  • predominantly recreational
  • supplied by a third party who is paid directly by the students.

Food provided during an excursion is not GST-free as part of the excursion; however, the food may be GST-free for other reasons.

Fundraising events

  • the event is of the type set out under Sales of bingo and raffle tickets
  • the preschool is eligible to and has elected to treat the event as input taxed
  • the event is conducted through a non-profit sub-entity that is not registered or required to be registered.

Fees charged to attend an education course

  • the fees are charged in return for a right to receive GST-free education (for example, enrolment fees)
  • an agent acting on behalf of the preschool charges a fee that legally binds the preschool to provide education.

the fee only creates a right to be considered for a position in a preschool and does not guarantee entry.


  • the grant is received with no binding obligation to do something with the grant
  • the preschool is a non-profit body and receives the grant as a gift
  • the only obligation stipulated is to report on how the grant was spent
  • the preschool is not registered for GST.


the co-payment of preschool fees is made by parents/government

the co-payment takes the form of 'per capita' funding from the government.

Child care

the child care service meets one of the three requirements to be classified as GST-free child care.

the child care service does not meet one of the three requirements to be classified as GST-free child care.

Last modified: 23 May 2014QC 17807