Private ruling: Goods and services tax (GST) and education courses
Date of advice: 5 December 2019
Published: February 2020

Ruling: Q1: Is GST payable on your supplies of the following courses? | A1: No.

Relevant facts and circumstances: You are registered for GST. You supply a number of training courses in Australia. You are an RTO (a Registered Training Organisation). You supply the following courses, which are within the scope of your RTO registration: You are registered to provide these courses anywhere in Australia

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

Reasons for decision: Summary: These courses are GST-free under section 38-85 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) as they are tertiary courses. Therefore, GST is not payable on the supply of these courses. | Detailed Reasoning - Detailed reasoning: Under section 9-5 of the GST Act, you make a taxable supply if: · you make the supply for consideration · the supply is made in the course or furtherance of an enterprise that you carry on · the supply is connected with Australia, and · you are registered, or required to be registered for GST. However, the supply is not a taxable supply to the extent that it is GST-free or input taxed. A supply of an education course is GST-free under section 38-85 of the GST Act. Education course is defined in section 195-1 of the GST Act to mean, amongst other things, a tertiary course. | Detailed Reasoning - Tertiary course: Tertiary course is defined in section 195-1 of the GST Act and includes 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 . | Detailed Reasoning - Education Minister's Determination: The Education Minister has determined under the Student Assistance (Education Institutions and Courses) Determination 2019 that a VET course provided by an RTO is a tertiary course. Definitions of both RTO and VET course are provided in the determination as follows: RTO: registered training organisation means a training organisation that is registered on the National Register as a registered training organisation. VET course: VET course has the meaning that term is given in section 3 of the National Vocational Education and Training Regulator Act 2011. Section 3 of the National Vocational Education and Training Regulator Act 2011 states: VET course means: (a) the units of competency of a training package that is endorsed by the Ministerial Council; or (b) the modules of a VET accredited course; or (c) the modules of a course accredited by a VET Regulator of a non-referring State. In your case, you are an RTO and the following VET courses are within the scope of your RTO registration: · Certificate III in Early Childhood Education and Care · Certificate III in Individual Support · Certificate III in Individual Support (Ageing) · Certificate III in Individual Support (Disability) · Certificate III in Individual Support (Home and Community) · Certificate III in Individual Support (Ageing, Home and Community) · Certificate IV in Disability · Diploma in Early Childhood Education and Care · Provide Cardiopulmonary resuscitation (CPR) · Provide first aid Therefore, your supplies of these courses are GST-free supplies of tertiary courses. Hence, GST is not payable on your supplies of these courses