Private ruling: GST and adult and community education course
Published: January 2015

Ruling: Q1: Are your supplies of the courses GST-free supplies of adult and community education (ACE) courses? | A1: No, your supplies of the courses are not GST-free supplies of ACE courses. A supply of an education course is GST-free under paragraph 38-85(a) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act). The definition of 'education course' includes an ACE course. Section 195-1 of the GST Act defines an ACE course to be 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; and (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 (b) is determined by the *Education Minister to be an adult and community education course. (*denotes a term defined in section 195-1 of the GST Act). The A New Tax System (Goods and Services Tax) (Adult and Community Education Courses) Determination 2000 determines the kinds of courses, and the courses, that are ACE courses for the purposes of the definition of an ACE course in section 195-1 of the GST Act. Paragraph (a) of the definition of an ACE course does not apply as you are not a higher education institution, you are not recognised by a State or Territory authority as a provider ACE courses, and you are not funded by a State or Territory on the basis that you are a provider of an ACE course. One of the requirements of paragraph (b) of the definition of an ACE course is that the course is provided by, or on behalf of, a body that is a body corporate that operates on a not-for-profit basis. Our records show that you are not a non-profit organisation. Further, you are not providing the courses on behalf of a non-profit organisation. Therefore, paragraph (b) does not apply. As the courses do not satisfy the requirements of an ACE course, your supplies of the courses are not GST-free supplies of ACE courses.

Relevant facts and circumstances: You are registered for GST. You provide courses in a specified field. Some graduates of the courses are employed by you. Others commence their own businesses or have added skills for their existing business or employment in different industries. There are no minimum educational entry requirements into the courses. The courses can be provided to employees at the request of their employer or to members of an organisation at the request of the organisation. You are not a registered training organisation (RTO). You are not funded by a State or Territory on the basis that you are a provider of a course determined to be an ACE course. You are recognised as a provider of the courses by a specified organisation which recognises the practice as an approved modality for membership purposes. The organisation is not a State or Territory authority.

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