Private ruling: GST - supply of GST-free education course
Date of advice: 13 November 2025
Published: 12 January 2026
Ruling period: Not applicable
Date scheme commenced: Not applicable

Ruling: Q1: Is the supply of the Multi-Crew Pilot Licence ("MPL") aviation course supplied by you a GST-free professional or trade course under section 38-85 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)? | A1: Yes. The supply of MPL aviation course supplied by you is a GST-free professional or trade course under section 38-85 of the GST Act.

Relevant facts and circumstances: • You are registered for GST in Australia and carry on an enterprise of providing pilot training services. • You are a flight school accredited by the relevant Civil Aviation Authority and based outside Australia. • You expanded your operations to Australia, due to the favourable climate and weather conditions that support consistent flight training. • There are two primary pathways for a student pilot with no prior qualifications to enter the aviation industry and become a commercial airline pilot. a) The first option is the traditional pathway, which involves pursuing the Commercial Pilot Licence ("CPL"); and b) The second option is the MPL, an alternative pathway that focuses specifically on training for multi-crew operations. The MPL is a relatively recent and specialised pathway introduced by the International Civil Aviation Organization ("ICAO") in November 2006. • The MPL replaces many of the single-pilot elements of flight training with multi-crew operations and procedures with the opportunity to progress to an Air Transport Pilots Licence ("ATPL") without a CPL once cadets have achieved the required flying hours. • Transitioning to other licences (e.g., CPL or Private Pilot Licence ("PPL")) requires meeting additional requirements under Civil Aviation Regulations 1988 ("CAR"). • The MPL is specifically designed for training pilots to operate as co-pilots in multi-crew, multi-engine aircrafts. • The MPL course does not represent a specialisation akin to an ATPL upgrade, but rather constitutes a complete and standalone licensing pathway into the profession of a commercial airline pilot (co-pilot). • Cadets who complete the MPL program are often given job placements with partner airlines, as the training is designed in collaboration with these airlines to ensure cadets are 'line-ready' upon graduation. This means they are prepared to start working as co-pilots on commercial airlines immediately after completing the course. • Civil Aviation Safety Authority ("CASA") is the Australian government body responsible for regulating civil aviation safety, licensing pilots, and overseeing aircraft operations. CASA pertains to the Civil Aviation Safety Regulations 1998 ("CASR") and outlines the requirements and standards for flight crew licensing in Australia. • Under Part 61 of the CASR a person cannot be employed as a pilot in a multi-crew commercial airline operation unless they hold either: a) a CPL with multi-crew cooperation ("MCC") training and type rating under CASR Part 61; or b) an MPL issued under CASR Part 61. • Regulation 61.635 (Subpart J) of the CASR provides that an MPL holder may pilot an aeroplane as co-pilot, for an operator that has a training and checking system that is in accordance with requirements of Part 119 or 138. • Under division 61.B.6 of the CASR a flight crew licence that has been issued by another ICAO member state may be accepted as a basis for issue of an Australian licence. • The MPL is a direct, entry-level professional licence, not a post-entry specialisation like the ATPL. It enables employment as a co-pilot from zero experience and is imposed by CASA as the national regulatory authority. • You hold CASA approval to conduct MPL training in Australia as per its Operations Manual and Part 141 Exposition.

Relevant legislative provisions: 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 | Civil Aviation Safety Regulations 1998 - part 61 | Civil Aviation Safety Regulations 1998 - regulation 61.635 | Civil Aviation Safety Regulations 1998 - division 61.B.6 | Civil Aviation Regulations 1988

Reasons for decision: Summary: An education course is GST-free under section 38-85 of the GST Act. An education course is defined in section 195-1 of the GST Act to include a professional or trade course, amongst other things. | Detailed Reasoning - Professional or trade course: According to the definition, 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. Goods and services tax ruling: supplies that are GST-free as professional or trade courses (GSTR 2003/1) explains further the meaning of professional or trade courses. Paragraphs 34 and 35 of GST 2003/1 provide the meaning of a course that leads to a qualification: 34. We consider that the words 'leading to' require a causal connection between the course that is undertaken and the qualification that is ultimately obtained. 35 . We also consider that a causal connection exists where there is a sufficiently direct and demonstrable link or connection between the course and the qualification. The qualification must result from and will follow successful completion of the course. Paragraphs 46 to 49 of GSTR 2003/1 explain the meaning of a qualification that is an essential prerequisite for entry to a profession or trade. 46. Your course will only be a professional or trade course if it leads to a qualification that is an essential prerequisite for entry to, or to commence the practice of, a particular profession or trade. 47. Under the section 195-1 definition of 'essential prerequisite', the qualification must be imposed: a) by or under an industrial instrument; b) if there is no industrial instrument, by a professional or trade association that operates on a national level; or c) 0; if neither (i) nor (ii) applies, by a professional or trade association that operates at a State or Territory level. 48. A qualification is an essential prerequisite if it is mandatory for a person to have the qualification before he or she can enter into, or commence the practice of, a particular profession or trade. This necessarily requires the imposition of penalties or sanctions if a person enters into, or commences the practice of, the profession or trade without the relevant qualification. 49. A qualification that is imposed for reasons other than for entry to, or to commence the practice of, a profession or trade, is not an essential prerequisite for the purposes of a professional or trade course. Similarly, a qualification required by an employer or group of employers, but which is not imposed by an industrial instrument, or a professional or trade association at either the national level, or State or Territory level will not be an essential prerequisite. Paragraph 44 of GSTR 2003/1 indicates that a certificate or licence would satisfy the definition of a qualification and states: 44. A relevant authority or professional or trade association may issue a licence or a certificate that qualifies a person to do certain things. For example, a licence to drive a particular class of heavy road vehicle, or a practising certificate. Where this is the case, the certificate or licence is a qualification for the purposes of the section 195-1 [GST Act] definition of a professional or trade course. | Detailed Reasoning - Multi-crew Pilot Licence (MPL): MPL is the second or alternative pathway, next to CPL to become a pilot in Australia. It was introduced by ICAO in November 2006. Unlike CPL, MPL would allow a pilot to be a co-pilot on multi-crew operations. Cadets who complete the MPL course will be offered employment with the relevant airlines or with their partner airlines. Similar to CPL course, MPL course will lead to qualification which will allow the cadets into a direct entry level in the profession. It is not a specialisation course such as the ATPL to maintain the practice. CASR is the industrial instrument that deals with the authorising pilot licensing in Australia. A person not holding a licence under Part 61 of the CASR is not authorised to pilot or co-pilot any aircraft in Australia. It is mandatory for a person to hold a licence under part 61 of the CASR before they can enter into, or commence the practice of, the profession or trade of a commercial pilot of aircraft. Therefore, for GST purposes a licence under part 61 of the CASR is a qualification which is an essential prerequisite in relation to the entry to or the commencement of the practice of the profession or trade of a commercial pilot. Division 61.B.6 of the CASR provides that a flight crew licence that has been issued by another ICAO member state may be accepted as a basis for issue of an Australian licence. | Detailed Reasoning - Supply of MPL course: You supply the MPL aviation course which is an alternative training and licensing pathway to becoming an airline co-pilot. Upon successful completion of the course, the recipient applies for a MPL through CASA in Australia. CASA reviews the training records and flight test results and issues the licence. As the licence can be imposed in Australia, under the CASA as the national regulator responsible for administering the Civil Aviation Act 1988 and the Civil Aviation Safety Regulations 1998 , it is a qualification imposed by an industrial instrument. The facts show that you hold CASA approval to conduct MPL training in Australia. Therefore, your course will prepare the cadets to apply for a MPL in Australia. In this regard, we consider the relevant training course you supply to cadets to obtain a MPL whilst certified as an approved CASA training organisation will satisfy the definition of a professional or trade course. This is because they are essential prerequisites in order for a person to gain the qualification needed to enter into the profession or trade of commercial airline pilot, as mandated by an industrial instrument. Therefore, your supply of MPL courses will be GST-free education course under section 38-85 of the GST Act.

Does IVA apply to this private ruling?: Part IVA of the Income Tax Assessment Act 1936 contains anti-avoidance rules that can apply in certain circumstances where you or another taxpayer obtains a tax benefit, imputation benefit or diverted profits tax benefit in connection with an arrangement. | If Part IVA applies, the tax benefit or imputation benefit can be cancelled (for example, by disallowing a deduction that was otherwise allowable) or you or another taxpayer could be liable to the diverted profits tax. | We have not fully considered the application of Part IVA to the arrangement you asked us to rule on, or to an associated or wider arrangement of which that arrangement is part. | If you want us to rule on whether Part IVA applies, we will need to obtain and consider all the facts about the arrangement which are relevant to determining whether Part IVA may apply. | For more information on Part IVA, go to our website ato.gov.au/gaar .