ATO ID 2003/1036: GST and first aid courses
Date of decision: 1 May 2002
Business line: Indirect Tax

Issue
Is the entity, a supplier of first aid services and equipment that is an associate of a registered training organisation, making a GST-free supply under section 38-85 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it supplies a first aid course?

Decision
No, the entity is not making a GST-free supply under section 38-85 of the GST Act when it supplies a first aid course. The entity is making a taxable supply under section 9-5 of the GST Act.

Facts
The entity is a supplier of first aid services and equipment. The entity is supplying a first aid course that comprises training in first aid, cardio-pulmonary resuscitation (CPR) and basic emergency care (basic life support). The course is an accredited vocational education and training course that is specified in the Education Minister's determination under subsection 5D(1) of the Student Assistance Act 1973 (The Student Assistance Act Determination (No. 1999/2) (SAA Determination). In the entity's State or Territory, a registered training organisation (RTO) is a body that is approved by the relevant authority to provide first aid courses. The entity is not an RTO, nor is it approved by the relevant authority as a first aid provider. The entity is an associate of an RTO. The RTO does not directly supervise the entity in running the course, nor does it provide any regular guidance, support or direction to the entity. The RTO is not involved in the enrolling of participants or any other administrative aspects of the course. The entity is registered for goods and services tax (GST). The supply satisfies the other positive limbs of section 9-5 of the GST Act.

Reasons for decision
Summary: The supply of an education course is GST-free under section 38-85 of the GST Act. An education course is defined in section 195-1 of the GST Act to include, amongst other things, a tertiary course and a first aid or life saving course. These are the only types of education course from the definition in section 195-1 of the GST Act that could be relevant to the entity's situation. To be GST-free as a tertiary course, as defined in section 195-1 of the GST Act, a course must be specified in the SAA Determination. The SAA Determination provides that an accredited vocational education and training course specified in the SAA Determination that is conducted by an RTO is a tertiary course. The entity is supplying an accredited vocational education and training course that is specified in the SAA Determination. However, the entity itself is not an RTO, it is the associate of an RTO. For the purpose of the SAA Determination, it is not sufficient that the supply is made by the associate of an RTO, the course supplier itself must be the RTO. Were the entity acting as agent for the RTO, then the RTO would be making the supply of the course, and the requirement in the SAA Determination would be satisfied. As the entity supplies the course in its own right and has complete control and administration of the course, the relationship between the entity and the RTO does not amount to an agency agreement. The entity has little to no contact, support or direction from the RTO. Therefore, as the entity is the supplier of the course and it is not an RTO nor is it acting as agent for the RTO, the course does not satisfy the definition of a tertiary course in section 195-1 of the GST Act. To be GST-free as a first aid or life saving course, as defined in section 195-1 of the GST Act, a course must satisfy both of the following requirements. First requirement Under section 195-1 of the GST Act, a first aid or life saving course must be one that principally trains individuals in one or more of the following: The entity is supplying a first aid course that comprises training in first aid, cardio-pulmonary resuscitation (CPR) and basic emergency care (basic life support). Therefore, the entity's course satisfies the first requirement of the definition of first aid or life saving course in section 195-1 of the GST Act. Second requirement The first aid or life saving course must be provided by a body that is: In the entity's State or Territory, a first aid course satisfies the second requirement of the definition in section 195-1 of the GST Act if it is provided by an RTO. The entity is not an RTO, nor is it registered or approved as a first aid course provider by the relevant State or Territory body or authority. Moreover, as discussed above, the entity is not acting as agent for its associated RTO. As the course does not satisfy the second requirement of the definition, it does not amount to a first aid or life saving course as defined in section 195-1 of the GST Act. Accordingly, the entity is not making a supply of a tertiary course or a first aid or life saving course, nor is it making a supply of any other type of education course as defined in section 195-1 of the GST Act. Therefore, the entity is not making a GST-free supply under section 38-85 of the GST Act when it supplies a first aid course. The entity is registered for GST and the supply satisfies the other positive limbs of section 9-5 of the GST Act. Furthermore, the supply is not GST-free under any other provision in Division 38 of the GST Act, nor is it input taxed under Division 40 of the GST Act. Therefore, the entity is making a taxable supply under section 9-5 of the GST Act when it supplies a first aid course.

Legislative references: A New Tax System (Goods and Services Tax) Act 1999 section 9-5 Division 38 section 38-85 Division 40 section 195-1
Other references: The Student Assistance Act Determination (No. 1999/2)(SAA Determination)
Subject references: Goods and services tax GST free GST education Education courses First aid or life saving course GST supplies & acquisitions Taxable supply