ATO ID 2004/144: GST and supply of training for the purpose of licensing for a particular occupation
Date of decision: 11 November 2002
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 supplies an assessment of a person's knowledge and skills for the purpose of that person gaining a forklift license?

Decision
Yes, the entity is making a GST-free supply under section 38-110 of GST Act when it supplies an assessment of a person's knowledge and skills for the purpose of that person gaining a forklift license.

Facts
The entity is a trade association. The entity supplies an assessment of a person's knowledge and skills for the purpose of that person gaining a forklift license. The entity does not provide a training service. It is a requirement of the person's occupation to hold a forklift licence. 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: Registration or licensing for a particular occupation refers to a situation where a person is required to hold a licence or be registered with an authority before they may practice or take up employment in a particular trade, profession or occupation, such as medical practitioners, plumbers, lawyers, electricians and operators of certain types of industrial equipment such as cranes and forklifts. The entity supplies an assessment of a person's knowledge and skills for the purpose of that person gaining a forklift license. It is a requirement of the person's occupation to hold a forklift licence. Therefore, the entity's supply is for the purpose of licensing for a particular occupation. As such, the 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 under subsection 38-110(2) of the GST Act. Accordingly, the entity is making a GST-free supply under section 38-110 of the GST Act when it supplies an assessment of a person's knowledge and skills for the purpose of that person gaining a forklift license.

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