ATO ID 2004/45: GST and assessment of prior learning for the purpose gaining a promotion
Date of decision: 14 January 2004
Business line: Indirect Tax

Issue
Is the entity, a trade association, making a GST-free supply under section 38-110 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) when it assesses the qualifications of a person for the purpose of that person gaining a promotion?

Decision
Yes, the entity is making a GST-free supply under section 38-110 of the GST Act when it assesses the qualifications of a person for the purpose of that person gaining a promotion.

Facts
The entity is a trade association. The entity supplies a service of assessing the qualifications held by a person for the purpose of that person gaining a promotion. The entity conducts a test of that person's knowledge and skills and may also issue a qualification based on that test. The entity is registered for goods and services tax (GST).

Reasons for decision
Summary: A supply is GST-free under subsection 38-110(1) of the GST Act when the supply is the assessment or issue of qualifications for the purpose of: An assessment or issue of qualifications for the purpose of employment encompasses assessment or issue of qualifications for any aspect of employment, including obtaining, retaining, advancement within or changing employment. The entity's supply of assessing the qualifications of a person is for the purpose of that person gaining a promotion. A promotion is advancement within employment and, as such, the entity is making an assessment that is for a purpose of employment. Therefore, the entity's supply satisfies the requirements in subsection 38-110(1) of the GST Act. However, subsection 38-110(2) of the GST Act provides that a supply is not GST-free under subsection 38-110(1) of the GST Act unless the supply is carried out by: The entity is a trade association. Therefore, the entity's supply is not excluded from being GST-free. Accordingly, the entity is making a GST-free supply under section 38-110 of the GST Act when it assesses the qualifications of a person for the purpose of that person getting a promotion.

Legislative references: A New Tax System (Goods and Services Tax) Act 1999 section 38-110 subsection 38-110(1) subsection 38-110(2)
Subject references: Goods and services tax GST free GST education Recognition of prior learning