Private ruling: GST - professional or trade courses
Date of advice: 17 October 2025
Published: 1 December 2025
Ruling period: 1 July 20xx
Date scheme commenced: 1 July 20xx

Ruling: Q1: Are xxxx (you) making a GST-free supply of a professional or trade course under section 38-85 of the A New Tax System (Goods and Services Tax) Act 1999 when it provides Commercial Pilot Licence (CPL) training? | A1: No. The supply of the CPL course that you provide is not a GST-supply of a professional trade course under section 38-85 of the GST Act. | Q2: Are xxxx (you) making a GST-free supply of a professional or trade course under section 38-85 of the A New Tax System (Goods and Services Tax) Act 1999 when it provides Private Pilot Licence (PPL) training? | A2: No. The supply of the PPL course that you provide is not a GST-supply of a professional trade course under section 38-85 of the GST Act. | Q3: Are xxxx (you) making a GST-free supply of a professional or trade course under section 38-85 of the A New Tax System (Goods and Services Tax) Act 1999 when it provides Recreational Pilot Licence (RPL) training? | A3: No. The supply of the RPL course that you provide is not a GST-supply of a professional trade course under section 38-85 of the GST Act. | Q4: Are xxxx (you) making a GST-free supply of a professional or trade course under section 38-85 of the A New Tax System (Goods and Services Tax) Act 1999 when you provide combined training to attain a Recreational Pilot Licence, Private Pilot Licence and Commercial Pilot Licence? | A4: No. The supply of combined training is not a GST-supply of a professional trade course under section 38-85 of the GST Act. | Q5: Are xxxx (you) making a GST-free supply of a professional or trade course under section 38-85 of the A New Tax System (Goods and Services Tax) Act 1999 when it provides Instrument Rating training? | A5: No. The supply of the Instrument Rating training that you provide will not be considered a GST-supply of a professional trade course under section 38-85 of the GST Act. | Q6: Are xxxx (you) Ltd making a GST-free supply of a professional or trade course under section 38-85 of the A New Tax System (Goods and Services Tax) Act 1999 when it provides Ground Theory training for a Commercial Pilot Licence? | A6: No. The supply of the Ground Theory training is not a GST-supply of a professional trade course under section 38-85 of the GST Act.

Relevant facts and circumstances: Xxxx (you) provide flight training and are registered for GST. You are not a higher education institute or a registered training organisation (RTO). You conduct the following training to students in Australia: • Commercial Pilot Licence (CPL) training • Instrument Rating training • Recreational Pilot Licence (RPL) • Private Pilot Licence (PPL) • Ground Theory Commercial Pilot Licence (CPL) You provide CPL training under CASA certification. Section 20AB of the Civil Aviation Act 1988 provides that a 'person must not perform any duty that is essential to the operation of an Australian aircraft during flight time unless' ... 'the person holds a civil aviation authorisation ... to perform that duty' or 'the person is authorised by or under the regulations to perform that duty...'. That is, a person cannot be employed as a commercial pilot (such as in charter operations or in an airline environment) without the appropriate commercial pilot licence. As such, a CPL is an essential requirement to becoming a commercial pilot. Regulation 61.580 of the Civil Aviation Safety Regulations 1998 provides the requirements for an individual to be granted a commercial pilot licence. These are that the person: • must be over 18 • must have passed the aeronautical knowledge examination for the commercial pilot licence and the associated aircraft category rating; and • completed flight training for the commercial pilot licence and the associated aircraft category rating; and • passed the flight test mentioned in the Part 61 Manual of Standards for the commercial pilot licence and the associated aircraft category rating; and • met the aeronautical experience requirements mentioned in Division 61.I.2 or 61.I.3. According to the CASA website, an integrated commercial pilot training course is a structured course where the students do the ground theory with practical flight training at the same time provided through Part 142 flight training operators whereas in a non-integrated training the students do more practical flight training through Part 141 flight training operators. You provide non-integrated CPL training only. Recreational Pilot Licence (RPL) A RPL allows the holder to: • Operate an aircraft solo. • Manage aircraft with a maximum take-off weight of up to 1500kg. • Conduct flights during daylight hours under visual flight rules. • Explore within a 25 nautical mile radius of the departure aerodrome; or • Train within the designated flight training of the departure aerodrome; or • Fly between the departure aerodrome and the flight training area The following are the requirements for RPL: • Pass a knowledge examination successfully • Complete the required flight training under the supervision of certified instructors • Demonstrate proficiency by passing the flight test to get your recreational pilot license • Fulfill minimum flight hour requirements, including 20 hours of training and 5 hours of solo flight • Reach the minimum age requirement of 16 years The holder of a RPL is not permitted to work as a pilot. Private Pilot Licence (PPL) A PPL allows the holder to fly friends and family anywhere in Australia during the day in visual certain conditions. In this course the students will build on the basics they have already mastered and be taught how to navigate. The theory component culminates with a CASA cyber exam which you can help them prepare for. Once the students have passed the flight test, they will be 'free' to fly wherever they choose. The following are the requirements for PPL: • Pass a knowledge examination successfully • Complete the required flight training under certified instructors' guidance • Demonstrate proficiency by passing the flight test • Fulfill the minimum aeronautical experience requirements • Reach the minimum age of 17 years Training for a PPL requires at least 40 hours of flying time, including 5 hours of general flight time as pilot in command, 5 hours of cross-country flight time as pilot in command and 2 hours of instrument flight time and a security status check. Packaging the RPL, PPL and CPL training You are looking to provide training which will combine the RPL, PPL and CPL training into one package. Instrument Rating training An instrument rating allows a pilot to fly under the instrument flight rules (IFR) or at night under the visual flight rules (VFR). The IFR detail how a pilot can conduct a flight using the flight instruments to control and navigate the aircraft. The IFR also outline how a pilot can conduct an approach and landing in accordance using authorised procedures. The Instrument Rating training that you provide involves training in various approach types, departure and arrival procedures, and night operations. Training is generally completed in 40 hours and is often finished in one of their multi-engine aircraft. The Instrument Rating training leads to professional opportunities, for a CPL holder, that would not otherwise be possible due to the imposed limitation of flight in fair weather conditions by day. A charter operator who provides all weather flight services such as flight through cloud or low visibility requires the pilot to have an Instrument Rating. To get an instrument rating, the pilot needs to: • hold a private, commercial, or air transport pilot licence with an aircraft rating relevant to the instrument rating endorsement • pass the instrument rating exam • complete relevant flight training with an authorised instructor • pass a flight test • meet the relevant experience requirements. Ground Theory Training The Ground Theory training is for students to learn and practice for the mandatory CASA licence theory examinations. Students are required to pass seven theory exams prior to taking the CPL flight test. You offer Ground Theory training for all CASA exams. The Ground Theory training that you offer are offered intermittently and are delivered in person in a classroom setting. You cover all areas outlined in Manual of Standards (MOS) under CASR Part 61. Examination Fee When providing examinations for Commercial Pilot training, you will charge an examination fee. This fee will include both an invigilator fee and a CASA fee. The invigilator fee will relate to your portion of the examination fee which you receive for the service they provide in supervising the examination. The CASA fee is the portion that will be passed on to CASA as a service charge.

Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999 - section 38-85

Reasons for decision: Summary: Section 38-85 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) deals with education courses. It states: 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. We need to consider whether the supply of training services by you is the supply of an education course. Section 195-1 of the GST Act defines and education course to include 'a professional or trade course', which is defined as: 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. Commercial Pilot Licence Section 20AB of the Civil Aviation Act 1988 provides that a person is restricted from performing any duty that is essential to the operation of an aircraft unless the person holds the relevant civil aviation authorisation. Part 61 of the Civil Aviation Safety Regulations 1998 (CASR) sets out the licencing scheme for pilots and regulation 61.570 of the CASR provides the activities which the holder of a commercial pilot licence is authorised to undertake. Section 195-1 of the GST Act defines an essential prerequisite as a qualification that is imposed by or under an industrial instrument (such as an Australian law) for entry to or the commencement of the practice of a particular profession or trade. The Civil Aviation Act requires a person be authorised (under the CASR) to pilot an aircraft as pilot in command. That is, a person must hold a commercial pilot licence to enter the profession of being a commercial pilot. As such, a commercial pilot licence is an essential prerequisite for the entry to or the commencement of the profession of commercial pilot. Paragraph 22 of GSTR 2003/1 Goods and services tax: supplies that are GST-free as professional or trade courses (GSTR 2003/1) outlines what is considered a 'course' for GST purposes. It states: | Detailed Reasoning - What is a course?: 22. Whether you supply a course is a question of fact. In the context of the definition of a 'professional or trade course' in section 195-1, a course is a program of systematic and interactive instruction or training, for the acquisition of particular skills or knowledge. Indicators of a course include, but are not limited to: • delivery of educational instruction through an instructor or teacher; • ongoing support and guidance, for example, being available to answer questions; • assessment of the individual's progress; • monitoring or supervision; • provision of feedback concerning the individual; and • assessment of competency or satisfactory completion at the end of the program of instruction. Goods and Services Tax Determination GSTD 2000/11 Goods and services tax: is the supply of commercial pilot training GST-free as an education course under section 38-85 of the A New Tax System (Goods and Services Tax Act) 1999 (the GST Act)? (GSTD 2000/11) outlines when the supply of Commercial Pilots (Aeroplane) Licence (CPLA) may be GST-free as an education course under section 38-85 of the GST Act. Paragraph 8 of GSTD 2000/11 explains which pilot training is not GST-free as a professional or trade course and states: (c) The 200-hour non-integrated method of obtaining the CPLA is not a professional and trade course for GST purposes. It is not a course, as it is not a prescribed sequence of instruction. It is simply an accumulation of flying hours with a skill assessment by a Chief Flying Instructor. The minimum requirement before seeking a CPLA assessment is 200 hours flying time. This method of obtaining a CPLA is for someone who may have been accruing flying hours for recreational or private purposes and then decides to obtain a commercial licence. There is no practical and objective method of determining between private use and flying hours for the purpose of obtaining a commercial pilots licence. You provide a non-integrated CPL course. As outlined in GSTD 2000/11, the non-integrated method of obtaining the CPL, as offered by you, is not a course for GST purposes as it is not a prescribed sequence of instruction. Therefore, the supply of the CPL course by you is not a GST-free supply of a professional and trade course under section 38-85 of the GST Act. | Detailed Reasoning - Question 2 & 3: To be a GST-free supply of a professional or trade course under section 38-85 of the GST Act, the supplies of RPL and PPL training must be essential pre-requisites for entry into a particular profession or trade in Australia or to commence the practice of a profession or trade in Australia. Neither the supplies of RPL or PPL training result in the issuing of a qualification (the RPL or the PPL) that is an essential pre-requisite for entering into a profession or trade. Further to this, GSTD 2000/11 refers to PPL licences at subparagraph 8: 8. The following courses will NOT be GST-free as a professional and trade course, but will be GST-free as a tertiary course: (a) A Private Pilots (Aeroplane) Licence (PPLA) is not a professional and trade course. The PPLA does not allow a pilot to fly for gain. This is consistent with previous rulings. CASA Day VFR syllabus 1 November 1999 2.8.4 states 'Students undertaking an approved CPLA are not required to be issued with a PPLA and may undertake all training required for the issues of the CPLA while holding an Students Pilots Licence (SPL)'. Thus, the PPLA is not an essential pre-requisite for obtaining a CPLA and is not GST-free as a professional or trade course. A supply of training has to meet the requirements of a professional or trade course and not the individual subjects within the course. Therefore, even if completing RPL or PPL training may assist an individual in obtaining a CPL, the training is neither a course (as discussed above), nor does it result in a qualification that is an essential prerequisite for the entry into a particular profession or trade. Even if the student who is enrolled in RPL or PPL training has the intention to obtain a CPL, it does not change the fact that the RPL and PPL training do not meet the requirements to be a GST-free education course under section 38-85 of the GST Act. Consequently, neither the supplies of PPL, nor RPL training provided by you are GST-free professional or trade courses under section 38-85 of the GST Act as they are not essential prerequisites for entry into the profession of being a commercial pilot. | Detailed Reasoning - Question 4: The packaged CPL training would be provided as a non-integrated course. Therefore, it will not be a GST-free supply of a professional or trade courses under section 38-85 of the GST Act for the same reasons as the CPL training, as explained above. | Detailed Reasoning - Question 5: While Instrument Rating training may lead to professional opportunities and career progression, it is not an essential prerequisite for entry into profession of a pilot. This is reiterated in paragraph 8 of GSTD 2000/11, which states: (d) No ratings are required by regulation to obtain the CPLA and as such are not an essential prerequisite for entry into a particular trade or profession. In order to obtain the CPLA qualification the aeronautical experience includes periods as pilot-in-command, cross country and instrument flight time. Those ratings not obtained while completing a CPLA will be GST-free if undertaken as a tertiary course. (e) Endorsementsobtained incidentally within the training would be GST-free as the course itself is GST-free. Endorsements obtained outside the integrated training course maybe taxable supplies. All qualifications, licences and ratings other than the CPLA would be taxable unless they were GST-free as a tertiary course. An example is an instrument rating. The instrument rating is preferred by employers but is not mandatory. The Civil Aviation Regulations 1988 demand experience in instrument flying but this is not the same. In instrument flying the instructor is sighted while the student wears special goggles and concentrates on the instruments. A requisite number of hours flying in this manner is what is required for the CPLA. If the instrument rating is not acquired through the completion of a tertiary course it will be a taxable supply. Consequently, the Instrument Rating training that you provide is not a GST-free supply of a professional or trade course under section 38-85 of the GST Act. | Detailed Reasoning - Question 6: An exam by itself can never be a GST-free supply of an education course under section 38-85 of the GST Act. This is because an exam is not a structured course of education. Paragraph 7 of GSTD 2000/11 explains: (b) The Civil Aviation Regulations 1988 regulation 5.104(1)(c) requires a pass in a commercial pilot licence (aeroplane) theory examination.4 In the integrated course the theoretical aeronautical knowledge required to pass this examination is provided. For the non-integrated program CASA recommends the completion of a theoretical aeronautical knowledge course . If the course is completed as a structured course of study it will be GST-free as a professional and trade course. A structured course means the study of the competencies as set out in the CASA Day VFR syllabus. The aeronautical knowledge may also be acquired by the use of a textbook. The purchase of the textbook would be a taxable supply. Although section 38-110 of the GST provides that some assessments may be GST-free, this is only if the assessment is carried out by: (a) a professional or trade association; or (b) an education institution; or (c) an entity that is registered by a training recognition authority of a State or Territory in accordance with the Australian Recognition Framework to provide skill recognition (assessment only) services; or (d) an authority of the Commonwealth or of a State or Territory; or (e) a local government body. The Ground Theory training provided by you, whilst delivered in a classroom setting, is offered intermittently, based on the needs of the student. Therefore, you are not providing a course of study. Consequently, the supply of Ground Theory training for the CPL by you is not a GST-free supply of a professional or trade course under section 38-85 of the GST Act. The Examination Fee charged by you for Commercial Pilot training includes both an invigilator fee and a CASA fee. The invigilator fee refers to the portion of the Examination Fee that relates to the supply by you of supervising the examination. The CASA fee relates to services provided by CASA as a government body that regulates Australian aviation safety. CASA satisfies the requirements under section 38-110 of the GST Act and their portion of the supply of the Examination Fee would be GST-free. The supply of the Examination Fee would therefore be a mixed supply, where you would not include GST on the portion of the examination fee that relates to the CASA fee.