Private ruling: GST and supply of training and assessment services
Date of advice: 20 January 2016
Published: March 2016

Ruling: Q1: Is goods and services tax (GST) payable on your supply of training and assessment services to registered training organisations (RTOs)? | A1: Yes. GST is payable on your supply of training and assessment services to RTOs.

Relevant facts and circumstances: You are registered for GST. You are not a registered training organisation (RTO). You enter into contracts with RTOs to deliver training course and conduct assessments. You do not develop the training course. You use the training tools supplied by the RTOs for classroom and practical instruction. The course participants enrol with the RTOs.

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

Reasons for decision: Summary: GST is payable on a taxable supply. Under section 9-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), an entity makes a taxable supply if: (a) the entity make the supply for consideration; and (b) the supply is made in the course or furtherance of the entity's enterprise; and (c) the supply is connected with the 'indirect tax zone' (previously referred in the GST Act as 'Australia'); and (d) the entity is registered, or required to be registered for GST. The supply is not a taxable supply to the extent that it is GST-free or input taxed. In determining the status of your supply, it is necessary to identify what is supplied. That is, whether your supply is a supply of services or a supply of a training course. You advised that you enter into contracts with RTOs to deliver the training course and conduct assessments. You did not develop the course; rather, you use the training tools supplied by the RTOs for classroom and practical instruction. The course participants enrol with the RTOs. Based on the information that you provided, you do not supply the training course. Your supply is a supply of training and assessment services. You supply your services for consideration and in the course of your enterprise. The supply of your services is connected with the indirect tax zone as the services are performed in Australia. You are registered for GST. The requirements in paragraphs 9-5(a) to 9-5(d) of the GST Act are satisfied; therefore, the supply of your services is a taxable supply unless it is GST-free or input taxed. As you do not supply the training course, section 38-85 of the GST Act which is about GST-free supply of an education course would not apply. There are no other provisions in the GST Act under which your supply of services would be GST-free or input taxed. Therefore, your supply of training and assessment services is a taxable supply and is subject to GST.