Private ruling: GST and special education course
Published: July 2013

Ruling: Q1: Is the supply of an educational program delivered to children and students with a specific disability subject to GST? | A1: No. The supply of an educational program delivered to children and students with a specific disability is a GST-free supply. | Q2: Is the supply of educational consultancy services subject to GST? | A2: No. The supply of educational consultancy services is a GST-free supply. | Q3: Is the administration fee for processing clients to other facilitators and consultants subject to GST? | A3: The administration fee for processing clients to other facilitators who undertake the same educational work as you is a GST-free supply. The administration fee for referring clients to consultants who conduct screening tests is subject to GST. | Q4: Is the supply of hosting and staging seminars, for a nominal attendance fee, to raise the awareness of a specific disability to members of the public subject to GST? | A4: Yes. The supply of hosting and staging seminars, for a nominal attendance fee, to raise the awareness of a specific disability to members of the public is subject to GST.

Relevant facts and circumstances: You are registered for GST. You are not a registered training organisation. You are not recognised or funded by the relevant State or Territory authority as a provider of adult and community courses. You are not a body corporate operating on a not-for-profit basis. You are not an institution established by a law of the Commonwealth, State or Territory as a higher education institution or an institution registered or taken to be registered by TEQSA as a higher education provider. You are not an institution specified in section 4, or paragraph 34(4)(b), (f), or (h) of the Higher Education Funding Act 1988. You lease an office space to conduct the consultancy service as well as the Educational Program. You provide the following services: · Educational Program; · Educational consultancy service; · Administration Fee for referrals; and · Hosting and Staging Seminars. The services are explained as follows: Educational Program You provide an Educational Program (the program), in a one-on-one environment with children and students who have a specific disability over a six day period. The content of the program is determined by an International Organisation. You are licensed and trained by an International Organisation to provide this program. You advise that the program is for educational purposes. The program is designed specifically for children or students with a specific disability. The age of students ranges from 7 to 14 years. However, there are a few older students who have enrolled in the program. The program is designed for the educational and emotional needs of the student. It is not designed to enhance the skills or knowledge of health or educational professionals. You deliver the instructions and provide guidance to the students. Whilst you have a set format for the program, this can be altered to suit the needs of the student. Educational consultancy service Parents and families who have children with a disability contact you to enquire about the Educational Program (the program) and screening tests. The consultancy service involves a meeting with parents and family members, and educating them about how the program can benefit their children. The education consultancy service is directly related to the program. However, the parents who attend the consultancy service have no obligation to place their children in the program. The parents can simply choose whether or not to enrol their children in the program after the consultation. Administration Fee You have entered into agreements with other educational facilitators specialising in a specific disability, across Australia, to be paid an administration fee for expenses related to processing clients outside your area of service. You also refer your clients to consultants to undertake disability screening tests for your clients. The consultants pay you a fee (similar to a commission) for each referral. The screening test is available as an option to parents. Some parents have already undergone numerous testings and do not require a disability screening test. Some parents, whose children do the screening test, do not end up enrolling their child in the Program. Hosting and Staging Seminars You host seminars across Australia to discuss a specific disability, why sufferers think the way they do, and what corrective procedures your programs can provide. The seminars are provided to the general public. Guests attending these seminars generally pay a nominal entry fee.

Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999 section 9-5. | 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

Reasons for decision: Summary: The supply of an educational program delivered to children and students with a specific disability is a GST-free supply. | Detailed Reasoning - Detailed reasoning: Under subsection 38-85(a) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), the supply of an education course is GST-free. Education course is defined in section 195-1 of the GST Act to include a special education course. The term special education course is defined in section 195-1 of the GST Act as a course that meets the following requirements: · it is a course of education · it provides special programs, and · the special programs are designed specifically for children with disabilities or students with disabilities (or both). | Detailed Reasoning - Course of education: A course of education is defined in paragraphs 15 to 17 of Goods and Services Tax Ruling GSTR 2002/1 : Goods and services tax: supplies that are GST-free as special education courses (GSTR 2002/1) as a course or program of study that involves systematic instruction, training or schooling in scholastic and academic pursuits, vocational skills or personal development that is delivered in the form of a series of lessons or classes, to a group of children or students or to an individual children or student. You advise that you deliver education instructions and provide guidance to students in order to improve the reading of those with a specific disability. The instructions are provided over a six day period to individual children one-on-one. Based on the information provided, it is considered that the special education course you supply to your students is a course of education. | Detailed Reasoning - Special programs: According to paragraph 22 of GSTR 2002/1, a program is designed for children or students with disabilities where it meets the following criteria: · evidence of an intention to design the program for children or students with disabilities; · the character of the program that is provided; · the intended recipients of the program; and · any relevant obligations you or others have in providing the program | Detailed Reasoning - Evidence of an intention to design the program for students with disabilities: An intention to design a program for children or students with disabilities may be demonstrated by material that indicates the program is marketed specifically for children or student with disabilities. The content of the program that you provide is determined by an International Organisation and is marketed specifically for children or students with a specific disability. This is evidence of an intention to design the program for students with disabilities. | Detailed Reasoning - The character of the program that is provided: The character of a special program may be established by considering its content, the place where it is delivered or how it will be delivered (or a combination of these things). The program you deliver addresses reading difficulties in students with a specific disability. You are licensed and trained by an International Organisation to deliver such a program. You are required to follow a specific format. Whilst you have a set format to your program, you are able to tailor your program to meet the specific learning needs of the individual students. The program is delivered at an office space in which you lease. | Detailed Reasoning - The intended recipients of the program: A special program needs to be designed specifically for children or students with disabilities. It is not necessary for people with disabilities to be the actual recipients of the program. The program is designed specifically for children or students with a specific disability. The age of students ranges from 7 to 14 years. However, there are a few older students who have enrolled in the program. The program is designed for the educational and emotional needs of the student. It is not designed to enhance the skills or knowledge of health or educational professionals. | Detailed Reasoning - Relevant obligations you or others have in providing the program.: The content of the program is determined by an International Organisation, and you are licensed by them to provide this program. You are required to follow the format of the program as determined by the International Organisation. On the information provided, it is considered that the special program you supply is designed for children or students with disabilities. Designed specifically for children with disabilities or students with disabilities (or both) According to paragraph 34 of GSTR 2002/1, children or students with disabilities are those children or students who have a functional or structural impairment that causes them difficulty in executing activities or problems involving life situations. This would include, but is not limited to, conditions that may be diagnosed under the following broad headings: · learning disabilities/specific learning difficulties (including a certain disability); · autism spectrum disorder; · physical disabilities; · emotional disorders; · language disorders; · hearing impairments; · visual impairments; · intellectual disabilities. You advise that your program is designed for students with a specific disability. As a result, your program meets the criteria of being designed specifically for children or students with disabilities (or both). In conclusion, you have demonstrated that your program meets the three criteria of a special education course under section 195-1 of the GST Act. Therefore, your supply of the program will be GST-free. | Summary: The supply of educational consultancy services is a GST-free supply. | Detailed Reasoning - Detailed reasoning: Under section 38-85 of the GST Act, a supply is GST-free if it is a supply of: (a) an education course; or (b) administrative services directly related to the supply of such a course, but only if they are supplied by the supplier of the course. You provide an Educational Program (the program) designed specifically for children or students with a specific disability. We consider this program to be an education course. (Refer to the detailed reasoning in Question 1 of this private ruling). According to paragraphs 64 and 65 of Goods and Services Tax Ruling GSTR 2000/30 : Goods and services tax: supplies that are GST-free for pre-school, primary and secondary education courses (GSTR 2000/30), if you charge for the supply of an administrative service directly related to the supply of an education course, then the supply is GST-free under paragraph 38-85(b) of the GST Act. The supply of administrative services directly related to the supply of an education course includes, (a) enrolment processing; (b) issue of identity cards; (c) assessment of students; (d) processing academic and sporting results; (e) preparation and printing of student progress reports; (f) arrangement of meetings with students, parents, guardians; (g) record-keeping; (h) administration of Speech Days or other similar school activities: (i) administration of the school library; (j) administration of a textbook scheme; (k) administration of the sale, lease or hire of school equipment to students as part of the supply of an education course to the students; and (l) administration of the supply of course materials. From the information provided, you provide consultancy services to parents and family members of children with a specific disability. There is a direct link between the consultancy service and the program. A meeting is arranged with the parents and family members to discuss how you can help them with your program. We consider the consultancy service as an arrangement of meetings with students, parents, guardians. Accordingly, we consider that the educational consultancy service is an administrative service that is directly related to of an education course in which you supply, being the program. Therefore, the supply of the educational consultancy service is a GST-free supply. | Summary: The administration fee for processing clients to other facilitators who undertake the same educational work as you is a GST-free supply. The administration fee for referring clients to consultants who conduct screening tests is subject to GST. | Detailed Reasoning - Detailed reasoning: According to paragraph 40 of GSTR 2002/1, where all of the requirements of the section 195-1 definition of special education course are satisfied, the course is GST-free, regardless of who provides the course. | Detailed Reasoning - Other facilitators who undertake the same educational work: From the information provided, you have entered into agreements with other educational facilitators specialising in a specific disability, across Australia, to be paid an administration fee for expenses related to processing clients outside your area of service. In this circumstance, the entity providing the special education course is the other educational facilitators. The supply that the educational facilities make to your clients is a GST-free supply according to section 38-85 of the GST Act. Consistent with paragraph 42 of the GSTR 2002/1, the supply that the educational facilitators make to you for the processing of the clients will still be considered a supply of a special education course. | Detailed Reasoning - Consultants who conduct screening tests: From the information provided, you also engage consultants to provide disability screening tests for your clients. The consultants pay you a fee for each referral. Paragraph 43 of the GSTR 2002/1 deals with situations where you supply a special education course to children or student with disabilities and you engage another person (for example, a consultant) to provide services to you. In this circumstance, the supply of the consultant's services to you is not GST-free as a special education course. Therefore, the administration fee for processing clients to other facilitators who undertake the same educational work as you is a GST-free supply. However, the administration fee for referring clients to consultants who conduct screening tests is not a GST-free supply and is subject to GST where all of the requirements of section 9-5 of the GST Act are satisfied. | Summary: The supply of hosting and staging seminars, for a nominal attendance fee, to raise the awareness of a disability to members of the public is subject to GST. | Detailed Reasoning - Detailed reasoning: A taxable supply is defined in section 9-5 of the GST Act. You make a taxable supply if: (a) you make the supply for consideration; and (b) the supply is made in the course or furtherance of an enterprise that you carry on; and (c) the supply is connected with Australia; and (d) you are registered, or required to be registered. However, the supply is not a taxable supply to the extent that it is GST-free or input taxed. Section 38-85 of the GST Act provides that the supply of an education course is GST-free. An education course is defined in the section 195-1 of the GST Act to mean: (a) a pre-school course; or (b) a primary course; or (c) a secondary course; or (d) a tertiary course; or (e) a Masters or Doctoral course; or (f) a special education course; or (g) an adult and community education course; or (h) an English language course for overseas students; or (i) a first aid or life saving course; or (j) a professional or trade course. or (k) a tertiary residential college course. From the information provided you host seminars across Australia to the general public. The seminars are based around discussions on a specific disability, why people with this disability think the way they do, and what corrective procedures your programs can provide. According to paragraph 19 of the GSTR 2002/1, a program is a special program if it is not made available to people generally. As the seminars are provided to the general public, we do not consider the seminars to be a special education course. The seminars will not be any other type of education course as defined in section 38-85 of the GST Act. Therefore, your supply of hosting and staging seminars will not be GST-free under section 38-85 of the GST Act. GST will be payable on your supplies of the hosting and staging seminars where all of the requirements of section 9-5 of the GST Act are satisfied.