ATO ID 2003/1013: GST and adult and community education courses provided by a women's association to its members
Date of decision: 6 March 2003
Business line: Indirect Tax

Issue
Is the entity, a not-for-profit body corporate, making a GST-free supply of an adult and community education (ACE) course under section 38-85 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it supplies a widely promoted course to its women members?

Decision
Yes, the entity is making a GST-free supply of an ACE course under section 38-85 of the GST Act when it supplies a widely promoted course to its women members.

Facts
The entity is a not-for-profit body corporate (incorporated association) that is registered for goods and services tax (GST). The association is set up to support the interests of women in industry. Membership is open to any woman of 18 years or over. The entity has not been denied recognition as a provider of ACE courses by the relevant State or Territory authority. The entity supplies a course that is likely to add to the employment related skills of participants in accordance with Goods and Services Tax Ruling GSTR 2000/27. There is no prerequisite by way of a necessary level of knowledge or skill, or of completion of prior training, required by participant to undertake and gain benefit from the course. The entity supplies the course to its members only. Any woman who wishes to take the course is required to join the association. The course is widely advertised in local papers, posters and fliers distributed around the district and through a number of community organisations. Participants are enrolled on a 'first come - first served' basis. The course is presented by way of a series of lectures, tutorials, discussion groups and practical exercises undertaken by participants in groups. The manner in which the course is presented is not by way of private tuition for individuals. The course is not provided by or at the request of an employer to employees of that employer. The course is not of a kind mentioned in any other paragraph of the definition of education courses in section 195-1 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. 'Education course' is defined in section 195-1 of the GST Act to include, amongst other things, an ACE course. Section 195-1 of the GST Act and the Education Minister's Determination A New Tax System (Goods and Services Tax)(Adult and Community Education Courses) Determination 2000 (Educations Minister's Determination) provides that an ACE course is a course of study or instruction that is: The entity supplies a course that is likely to add to the employment related skills of participants (in accordance with GSTR 2000/27) and the entity is a not-for-profit body corporate that has not been denied recognition as a provider of adult and community education courses by the relevant State or Territory authority. Therefore, the first and third requirements of an ACE course are satisfied. The second requirement for an ACE course is that it must be of a kind determined by the Education Minister to be an ACE course. At subsection 5(2) of the Education Minister's Determination, the Education Minister states that an ACE course must: The course is not of a kind mentioned in any other paragraph of the definition of education courses in section 195-1 of the GST Act. The entire membership of a particular gender constitutes a sufficiently large segment of the population to be considered 'adults in the general community'. In addition, the course has no prerequisite by way of a necessary level of knowledge or skill, or of completion of prior training and the method of promotion of the course lead to the conclusion that the course is available to adults in the general community. The course is not provided by or at the request of an employer to employees of that employer. The entity supplies the course to its members only and any woman who wishes to take the course is required to join the association. Membership is open to any woman of 18 years or over. As concluded above, the entire membership of a particular gender constitutes a sufficiently large segment of the population to be considered adults in the general community. As such, the course is a course provided by an organisation for which membership is open to adults in the general community. The course is presented by way of a series of lectures, tutorials, discussion groups and practical exercises undertaken by participants in groups. The manner in which the course is presented is not by way of private tuition for individuals. As such, the supply of the course by the entity satisfies the criteria of the Education Minister's Determination and the second requirement of an ACE course is satisfied. The entity is a not-for profit body corporate that supplies a course that is likely to add to the employment related skills of participants, and does so in circumstance that are in accordance with the Education Minister's Determination. Therefore, the entity is making a GST-free supply of an ACE course under section 38-85 of the GST Act when it supplies a widely promoted course to its women members.

Legislative references: A New Tax System (Goods and Services Tax) Act 1999 section 38-85 section 195-1
Related public rulings and determinations: Goods and Services Tax Ruling GSTR 2000/27
Other references: A New Tax System (Goods and Services Tax) (Adult and Community Education Courses) Determination 2000
Subject references: Goods and services tax GST free GST education Education courses Adult & community education course