Private ruling: GST and education courses
Date of advice: 22 March 2021
Published: June 2021

Ruling: Q1: Is your supply of the licence to transport particular goods by road Course ID (the course) GST-free under section 38-85 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)? | A1: Yes, your supply of the course is GST-free under section 38-85 of the GST Act.

Relevant facts and circumstances: This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling. You are registered for goods and services tax (GST). You supply the course directly to adults in the community.

Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999 section 38-85

Reasons for decision: Summary: Under section 38-85 of the GST Act a supply of an education course is GST-free. The term 'education course' is defined in section 195-1 of the GST Act to include, amongst other things: • a tertiary course • an adult and community education course, or • a professional or trade course. The term 'tertiary course' is defined in section 195-1 of the GST Act to mean, amongst other things: a) a course of study or instruction that is a tertiary course determined by the Student Assistance Minister under subsection 5D(1) of the Student Assistance Act 1973 for the purposes of that Act, or Paragraph (a) of the definition of a tertiary course includes all tertiary courses covered by the determination issued by the Education Minister under the Student Assistance Act 1973 . The determination lists the type of course and types of educations institutions that can deliver the course. The relevant determination is the Student Assistance (Education Institutions and Courses) Determination 2019. In regard to tertiary courses, amongst other things, it includes a VET program that is not a secondary course specified in Schedule 1 or a VET course specified in item 5 that is provided by either a higher education institution or an RTO. You are an RTO and you are supplying a single unit of competency being the course. You are not supplying the entire VET course itself. Goods and Services Tax Ruling GSTR 2001/1 Goods and services tax: supplies that are GST-free for tertiary education coursesprovides guidance on where you supply a single unit of a tertiary course. Paragraph 24 of GSTR 2001/1 states 'where you supply one unit of a tertiary course that is covered by the Education Minister's determination and the recipient is enrolled in that unit, the supply of that unit is GST-free.' Paragraph 25 of GSTR 2001/1 states 'a student is enrolled if his or her personal details are incorporated in the institution's normal student recording mechanism.' As you provided the course, which is a unit of competency of a nationally accredited VET course, your supply of the course satisfies the definition of a tertiary course for the purposes of paragraph (a) of the definition in section 195-1 of the GST Act. As such, your supply of the course is GST-free under section 38-85 of the GST Act.