Private ruling: GST and supply of education courses
Published: June 2012

Ruling: Q1: Is your supply of the courses GST-free? | A1: Yes, your supply of the courses is GST-free.

Relevant facts and circumstances: You are registered for goods and services tax. You are a Registered Training Organisation (RTO). You are accredited to provide vocational education and training (VET) program. The courses that you supply include courses that lead to an award of accredited certificates and diplomas, courses that are VET accredited courses, and a course that is a unit of competency taken from an endorsed training package. You supply the courses to companies in particular industries.

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 and | A New Tax System (Goods and Services Tax) Act 1999 section 195-1.

Reasons for decision: Summary: GST is payable on taxable supplies. Section 9-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) states: You make a taxable supply if: · you make the supply for *consideration; and · the supply is made in the course or furtherance of an *enterprise that you *carry on; and · the supply is *connected with Australia; and · you are *registered, or *required to be registered. However, the supply is not a *taxable supply to the extent that it is *GST-free or *input taxed. (*denotes a term defined in section 195-1 of the GST Act). Under section 38-85 of the GST Act, the supply of an education course is GST-free. 'Education course' includes, among other things, a tertiary course. 'Tertiary course' is defined in section 195-1 of the GST Act as: '(a) a course of study or instruction that is determined by the *Education Minister under subsection 5D(1) of the Student Assistance Act 1973 for the purposes of that Act; or (aa) a course of study or instruction accredited at Masters or Doctoral level and supplied by a *higher education institution or a *non-government higher education institution; 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) (as amended) defines a tertiary course to include a full time course 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. Schedule 2 to Determination 2009/2 specifies as a tertiary course an undergraduate or postgraduate accredited higher education course which is at the level of diploma or advanced diploma and is provided by a higher education institution or a registered training organisation. Schedule 2 to Determination 2009/2 also specifies as a tertiary course a vocational education and training (VET) course provided by a higher education institution or a registered training organisation. | Detailed Reasoning - A VET course means:: · a unit of competency of a training package that is endorsed by the Ministerial Council which has responsibility for the VET Quality Framework; · the modules of a VET accredited course; or · 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 Act 2011 . You supply courses that lead to an award of accredited certificates and diplomas, courses that are VET accredited courses, and a course that is a unit of competency taken from an endorsed training package. As such, these courses are tertiary courses. Your supply of the courses is GST-free under section 38-85 of the GST Act.

Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. If you have any concerns about this ruling you wish to discuss, you will find our contact details in the fact sheet.