Private ruling: GST - language course
Date of advice: 12 November 2025
Published: 5 January 2026
Ruling period: 12 November 2025 to 12 November 2029

Ruling: Q3: Is the language course, supplied by you, GST-free under section 38-85 of the GST Act when supplied to adults? | A3: No, the language course, supplied by you, is not GST-free under section 38-85 of the GST Act when supplied to adults.

Relevant facts and circumstances: The XXX (you) is a non-profit organisation and is registered for goods and services tax (GST). You are not accredited with the Australian Skills Quality Authority (ASQA) as a Registered Training Organisation (RTO). Your program mainly serves primary and secondary students, with a small pre-school cohort. You also run adult and community classes as an extension of your community language education. The adult classes are open to the general public. Typical participants include parents, university students, teachers and professionals seeking to improve communication, literacy and intercultural skills for study, work and community engagement. You claim that adult classes are delivered as structured small-group classes with term plans and timetables (not one-to-one private tuition).

Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999 Section 38-85 | A New Tax System (Goods and Services Tax) Act 1999 Section 195-1 | A New Tax System (Goods and Services Tax) Act 1999 Division 142 Detailed reasoning | An education course is GST-free under section 38-85 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act). | The term education course is defined in section 195-1 of the GST Act to include, amongst other things, a pre-school course, primary course and a secondary course. The definition also includes courses such as adult and community education courses. In deciding whether the language course is an education course, we have considered whether the course satisfies the definition of a pre-school, primary or secondary education course or an adult and community education course. Goods and Services Tax Ruling GSTR 2000/30 discusses supplies that are GST-free for pre-school, primary and secondary education courses. | Pre-School Education Course | To be a pre-school course, the course must be delivered in accordance with a pre-school curriculum recognised by the education authority of the State or Territory in which the course is delivered and be delivered by a school that is recognised as a pre-school under the law of the State or Territory in which the course is delivered. | From the facts provided, you are an ethnic school teaching language. You are not recognised as a pre-school in the State therefore the pre-school language course is not a pre-school course. Therefore, the supply of the language course to pre-school students is not GST-free under section 38-85 of the GST Act. Primary or Secondary Education Course | Under section 195-1 of the GST Act a 'primary course' means: (a) a course of study or instruction that is delivered: | (i) in accordance with a primary curriculum recognised by the education authority of the State or Territory in which the course is delivered; and | (ii) by a school that is recognised as a primary school under the law of the State or Territory; or | (b) any other course of study or instruction that the Student Assistance Minister has determined is a primary course for the purposes of this Act. | The Minister has determined as per the A New Tax System (Goods and Services Tax) (Language Other Than English - LOTE - courses offered by ethnic schools) Determination 2017 , for the purposes of paragraph(b) of the definition of primary course in section 195-1 of the GST Act, a LOTE course that is provided to primary school students by an ethnic school is determined to be a primary course for the purposes of the GST Act. | Under section 195-1 of the GST Act a 'secondary course' means: | (a) a course of study or instruction that is a secondary course determined by the Student Assistance Minister under subsection 5D(1) of the Student Assistance Act 1973 for the purposes of that Act; or | (b) any other course of study or instruction that the Student Assistance Minister has determined is a secondary course for the purposes of this Act. | The Minister has also determined as per the A New Tax System (Goods and Services Tax) (Language Other Than English - LOTE - courses offered by ethnic schools) Determination 2017 , for the purposes of paragraph(b) of the definition of secondary course in section 195-1 of the GST Act, a LOTE course that is provided to secondary school students by an ethnic school is determined to be a secondary course for the purposes of the Act. A LOTE course is provided by an ethnic school if it is provided by, or on behalf of, a school that: | (i) is a body corporate that operates on a not-for-profit basis; | (ii) has as its principal aim the teaching of languages other than English; | (iii) has close links with a community whose first/heritage language is not English; and | (iv) is licensed, recognised, accredited, or in any way approved to provide such courses by a State or Territory authority responsible for that approval, in the manner applicable within the relevant State or Territory. | You must satisfy conditions (i) to (iii) above and be an ethnic school that has been approved for funding by the relevant authority responsible for that approval, in the manner applicable in order to make GST-free supplies of a LOTE course as a primary or secondary course. | Of relevance is that this eligibility criteria includes three of the four criteria that determine whether a course is a primary or secondary course under the LOTE Determination, namely that a LOTE course is provided by an 'ethnic school' if it is provided by, or on behalf of, a school that: | • is a body corporate that operates on a not-for-profit basis | • has as its principal aim the teaching of languages other than English, and | • has close links with a community whose first/heritage language is not English. | In addition, the funding agreements between you and the State Department of Education detail that you were provided funding 'to conduct classes teaching community language'. All funding provided was conditional on you operating within the Community Languages Schools Program Guidelines and entering into the relevant Funding Agreement. | Therefore, providing you continue to receive funding from the State Department of Education for the course you provide to primary and secondary school children, they are respectively GST-free primary courses and secondary courses under section 38-85 of the GST Act. Adult and Community Education Course | The definition of an education course in section 195-1 of the GST Act includes an adult and community education course (ACE). An adult and community education course means a course of study or instruction that is likely to add to the employment related skills of people undertaking the course and: | (a) is of a kind determined by the Student Assistance Minister to be an adult and community education course and is provided by, or on behalf of, a body: | (i) that is a higher education institution; or | (ii) that is recognised by at State or Territory authority, as a provider of courses of a kind described in the determination; or | (iii) that is funded by a State or Territory on the basis that it is a provider of courses of a kind described in the determination; or | (b) is determined by the Student Assistance Minister to be an adult and community education course. | The Minister has determined as per the A New Tax System (Goods and Services Tax) (Adult and Community Education Courses) Determination 2016 , for the purposes of paragraph (a) of the definition of adult and community education course in section 195-1 of the Act To be an adult and community education course, the course of study or instruction must: | • not be any of the other courses covered by the definition of an education course under section 195-1 of the GST Act, and • be a course that is available to adults in the general community, and | • not be a course that is provided by, or at the request of an employer to the employees of that employer; and | • not be a course that is provided by, or at the request of an organisation to the members of that organisation, unless membership for the organisation is open to adults in the general community; and | • not be a course that is provided by way of private tuition to an individual. | Goods and Services Tax Ruling GSTR 2000/27 discusses the meaning of 'likely to add to employment related skills'. Paragraph 22 of GSTR 2000/27 states: | Whether an adult and community education course achieves its objectives and attracts its targeted participants will depend on the nature and content of the course, not on the actual prospects of individual persons undertaking the course. On the balance of probability there must be a reasonable expectation that the course will add to the employment related skills of people undertaking the course. There must be a reasonable expectation that the course will develop skills that can be used by participants in employment, or in a business, occupation, profession or trade. | A language course will only be GST-free if the language course is likely to add to the employment related skills of those undertaking the course and all the requirements referred to above are satisfied. | You advised that the language course for adults is open to the general public and the typical participants include parents, university students, teachers and professionals seeking to improve communication, literacy and intercultural skills for study, work and community engagement. | Furthermore, you advised that your adult classes are delivered as structured small-group classes with term plans and timetables ( not one-to-one private tuition ). | We consider that the adult language classes you provide is mainly aimed at recreational and/or cultural pursuits rather than principally directed to add to the employment related skills of the participants. As such, the adult classes do not satisfy the aspect of adding to the employment related skills of people undertaking the course. Therefore, the adult language classes are not an Adult and Community Education Course and is not GST-free under section 38-85 of the GST Act. Additional information : | Division 142 of the GST Act applies where you have treated something as taxable that is GST-free. This excess GST is treated as correctly payable on the supply and we cannot refund it to you where you have passed on the excess GST to your customer in the price they paid for the supply. The exception to this is if you reimburse the customer for the GST that was included in the price. | We consider GST is passed on to the customer for the taxable supply even if you may not have separately recorded adding an additional GST of 10% to the price you charged your customer. Generally, where you have treated a sale as a taxable supply you will have passed on the GST. | While there is a general expectation that excess GST has been passed on to the customer, the particular facts and circumstances of an individual case may be outside the ordinary and demonstrate that excess GST has not been passed on. For more information see Goods and Services Tax Ruling GSTR 2015/1.


Question 1: Is the language course, supplied by XXX (you) GST-free under section 38-85 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) when supplied to primary and secondary school students? | Question 2: Is the language course, supplied by you, GST-free under section 38-85 of the GST Act when supplied to pre-school students? | Answer 1: Yes, the language course, supplied by you, is GST-free under section 38-85 of the GST Act when supplied to primary and secondary school students. | Answer 2: No, the language course, supplied by you, is not GST-free under section 38-85 of the GST Act when supplied to pre-school students.