Private ruling: GST and education course
Published: March 2013

Ruling: Q1: Are the training course supplies you make a GST-free supply of an education course under section 38-85 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)? | A1: Yes, the training course supplies you make is a GST-free supply of an education course under section 38-85 of the GST Act.

Relevant facts and circumstances: You (the taxpayer) confirm that you are the trustee of a trust. You are a registered training organisation and have been allocated a provider number. You provide a nationally accredited training course in a specific sector. This is a recognised training course. You have recently applied for your scope of delivery to be expanded. This will then ensure that the training course you deliver satisfies all educational requirements. The training.gov.au (TGA) website shows that the training course supplies you deliver and have applied to deliver in the future are contained within an endorsed Training Package. The TGA website also states that this training package was fully endorsed by the National Skills Standards Council (NSSC). On successful completion of this training course, participants are awarded with a nationally accredited award detailing their completed studies. Government websites state that each state has a registering/course accrediting body. Each body is responsible for quality assurance and recognition of vocational education and training services in its region. The NSSC website states that the NSSC is a committee of the Standing Council on Tertiary Education, Skills and Employment (SCOTESE) and operates under its direction and approval. SCOTESE is the successor of the Ministerial Council for Tertiary Education and Employment. Some of the NSSC's main functions delegated by SCOTESE include endorsing training packages, developing related policy and overseeing quality assurance activities.

Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999 Division 40 | A New Tax System (Goods and Services Tax) Act 1999 9-5, | A New Tax System (Goods and Services Tax) Act 1999 9-40, | A New Tax System (Goods and Services Tax) Act 1999 195-1 and | A New Tax System (Goods and Services Tax) Act 1999 38-85.

Reasons for decision: Summary: Under section 9-40 of the GST Act, you must pay the GST payable on any taxable supplies that you make. Section 9-5 of the GST Act provides you make a taxable supply if: (a) you make the supply for consideration, (b) the supply is made in the course or furtherance of an enterprise you carry on, (c) the supply is connected with Australia, and (d) you are registered or required to be registered for GST. A supply however is not a taxable supply to the extent that it is GST-free or input taxed. Division 40 of the GST Act provides for certain supplies to be input taxed. We consider Division 40 has no application to the relevant supply that you are making. Division 38 of the GST Act outlines supplies that are GST-free. Under paragraph 38-85(a) of the GST Act, a supply of an education course is GST-free. An education course is defined under section 195-1 to include a tertiary course. Furthermore, a tertiary course is defined under section 195-1 to include: (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 (b) any other course of study or instruction that the Education Minister has determined is a tertiary course for the purposes of this Act. The Student Assistance (Education Institutions and Courses) Determination 2009 (No. 2) (Determination) defines tertiary courses at section 10 to include: (1) For paragraph 5D(1)(a) of the Act, a tertiary course is a full time course: (a) specified in Column 1 of the table in Schedule 2 to this instrument that is provided by an education institution specified for that course in Column 2 of that table. Column 1 of Schedule 2 of the Determination for tertiary courses includes a vocational education and training (VET) course. In relation to the VET course, column 2 of Schedule 2 includes a RTO as one educational institution that may provide the course. Section 4 of the Determination defines a VET course to include; (a) the units of competency of a training package that is endorsed by the Ministerial Council which has responsibility for the VET Quality Framework; (b) the modules of a VET accredited course; or (c) the modules of a course accredited by the VET Regulator of a State which is a non-referring State within the meaning of section 7 of the National Vocational Education and Training Regulator Act 2011. The training course supplies you provide and have applied to provide in the future are contained within an endorsed training package. The council holding responsibility for the VET Quality Framework is SCOTESE, who delegates its responsibilities to the NSSC, a committee of the SCOTESE. This training package was endorsed by the NSSC. For these reasons, the training course supplies you currently provide and have applied to provide are taken to be a VET course under section 4 of the Determination. The relevant Training Accreditation Council in your state has accepted your registration as a RTO. You are listed on the TGA website and have been given a provider number. Where the VET course is being provided by you, a RTO, you are taken to be providing a tertiary course for the purposes of 195-1 of the GST Act. The provision of a tertiary course is taken to be the provision of an education course which is accordingly GST-free. Furthermore, Goods and Services Tax Ruling, Goods and services tax: supplies that are GST-free for tertiary education courses (GSTR 2001/1) which is available on the Australian Taxation Office website www.ato.gov.au discusses GST-free supplies for tertiary courses. It states the GST implications where single units are offered. Paragraph 24 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'. It also states in paragraphs 50, 51 and 57 to 60 that, where you supply a tertiary course, any fees you charge for tuition and associated facilities are also GST-free.