Private ruling: GST and education course
Published: October 2013

Ruling: Q1: Are the supplies of the alternative therapy courses, provided by you, education courses as defined under section 195-1 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)? | A1: No.

Relevant facts and circumstances: · You are not registered for GST. · You are not a registered training organisation (RTO). · You are not recognised or funded by the relevant State or Territory authority as a provider of adult and community education courses. · You are not a body corporate operating on a not-for-profit basis. · You are not an institution that is established by a law of the Commonwealth, a State or a Territory as a higher education institution or an institution registered or taken to be registered by the Tertiary Education Quality and Standards Agency (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 have been teaching alternative therapies such as massage (the course) for over ten years. · The course is industry recognised. · The course's assessment, curriculum and structure have been implemented by you. You have a teaching degree and are a current teacher with Education in a particular state. · The course does not lead to a qualification that is an essential prerequisite for entry to a particular profession or trade in Australia. · The course does not lead to a qualification that is an essential prerequisite to commence the practice of a profession or trade in Australia. · The course does not lead to an award of an Australian Qualifications Framework (AQF) qualification or a statement of attainment. · The course is not accredited with any external body.

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 A New Tax System (Goods and Services Tax) (Adult and Community Education Courses) Determination 2000 | Student Assistance (Education Institutions and Courses) Determination 2009 (No.2) Schedule 2

Reasons for decision: Summary: The course provided by you is not considered an education course as defined under section 195-1 of the GST Act. | Detailed Reasoning - Detailed reasoning: Section 38-85 of the GST Act states that a supply is GST-free if it is a supply of an education course or a supply of administrative services directly related to the supply of such a course but only if they are supplied by the supplier of the course. The term 'education course' is defined in 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) (Repealed by No 143 of 2007) 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. (* denotes a term defined in section 195-1 of the GST Act) We consider that a tertiary course, an adult and community education course and a professional or trade course are of relevance in this case. | Detailed Reasoning - A tertiary course: Section 195-1 of the GST Act states that a tertiary course means: (a) a course of study or instruction that is a tertiary course determined by the *Education Minister under subsection 5D(1) of the Student Assistance Act 1973 for the purposes of that Act; or (aa) a course of study or instruction accredited at Masters or Doctoral level and supplied by a *higher education institution or a *non-government higher education institution; or (b) any other course of study or instruction that the Education Minister has determined is a tertiary course for the purposes of this Act. To be GST-free as a tertiary course, a course must satisfy the Education Minister's determination under subsection 5D(1) of the Student Assistance Act 1973 , namely the Student Assistance (Education Institutions and Courses) Determination 2009 (No.2) (SA Determination). Among other things, the SA Determination provides that to be a tertiary course, the course must be provided by an RTO, a higher education institution or any other body approved by the relevant State or Territory to conduct the course. You advised that you are not an RTO, a higher education institution or any other body approved by the relevant State or Territory to conduct the course. Therefore, the course you provide is not a tertiary course under section 195-1 of the GST Act. For further information on tertiary courses, refer to Goods and Services Tax Ruling GSTR 2001/1 S upplies that are GST-free for tertiary education courses . | Detailed Reasoning - An adult and community education course: Section 195-1 of the GST Act states that 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 *Education 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 a 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 *Education Minister to be an adult and community education course You advised that the course is not provided by, or on behalf of, a body that is recognised or funded as a provider of ACE courses or a body corporate operating on a not-for-profit basis. Therefore, the course you provide is not an ACE course under section 195-1 of the GST Act. For further information on ACE courses, refer to Goods and Services Tax Ruling GSTR 2000/27 A dult and community education courses; meaning of "likely to add to employment related skills". | Detailed Reasoning - A professional or trade course: Section 195-1 of the GST Act states that a professional or trade course means a course leading to a qualification that is an essential prerequisite: (a) for entry to a particular profession or trade in Australia; or (b) to commence the practice of (but not to maintain the practice of) a profession or trade in Australia. However, a course that leads to a qualification that is an essential prerequisite for maintaining or progressing within the practice of a profession or trade is not a professional or trade course. You advised that the course you supply does not lead to a qualification that is an essential prerequisite for entry to a particular profession or trade in Australia or to commence the practice of a profession or trade in Australia. Therefore, the course you supply is not a professional or trade course as defined in section 195-1 of the GST Act. For further information on professional or trade courses, refer to Goods and Services Tax Ruling GSTR 2003/1 supplies that are GST-free as professional or trade courses. The course that you supply does not fall under any of the other definitions of an education course in section 195-1 of the GST Act. | Detailed Reasoning - Taxable supply: Subsection 7-1(1) of the GST Act provides that GST is payable on taxable supplies. Section 9-5 of the GST Act states that 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. Currently you are not registered for GST. However, if you register or become required to be registered for GST, the supply of the course will be a taxable supply as the supply will meet all the requirements of section 9-5 of the GST Act.