Private ruling: GST and special education courses
Date of advice: 19 April 2018
Published: July 2018

Ruling: Q1: Are your personalised education courses for students with disabilities GST-free supplies of special education courses? | A1: Yes, the supply of your personalised education courses for children with disabilities are GST-free supplies of special education courses.

Relevant facts and circumstances: ● You are an entity registered for GST. ● You provide personalized education programs for children with learning and other disabilities. ● You provide the programs in a classroom environment. ● Your personalised education programs are systematic and consistent. Each program is customised to cater to a particular child’s disability. ● You implement different creative approaches depending on the particular disability of the child, including using an array of aids and equipment specifically designed for children with disabilities. ● You do not provide accelerated learning. ● Each child is initially assessed through an application process. A structured personalised learning program is designed for the child, with the aim to achieve specific outcomes for that child to cater to their disability. ● In developing a personalised program for the individual child, you use a variety of specific programs which are specifically designed for children with disabilities and which you manipulate to meet each child’s specific needs. ● Your goal is to bring the child as close as possible to their chronological age of academic ability. ● You provided various sample documents. ● The enrolment process consists of an enrolment form which includes the client details and contract. ● Your enrolment form shows that you invoice and contract directly with the parent/caregiver of the child. ● The child is constantly monitored and a program may be adjusted depending on how the child is responding. ● Each child is assessed on entry then twice a year thereafter and results are communicated. ● You communicate regularly with the parents and with their permission, you also communicate with the school, paediatrician, psychologist, behaviour or other specialists. ● You provided samples of your specific programs which you select and customise to create the personalised program for the child. ● The staff hold educational qualifications. All staff engage in interactive teaching.

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

Reasons for decision: Summary: The supply of an education course is GST-free under section 38-85 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act). ‘Education course’ is defined in section 195-1 of the GST Act to include, among other things, a special education course. To be a special education course as defined in section 195-1 of the GST Act, a course must be one that: (i) is a course of education (ii) provides special programs, and (iii) the special programs are designed specifically for children with disabilities or students with disabilities (or both). The criteria for special education courses are addressed in Goods and Services Tax: supplies that are GST-free as special education courses (GSTR 2002/1). | Detailed Reasoning - A course of education: In the context of a 'special education course' in section 195-1 of the GST Act, GSTR 2002/1 explains that a course of education should be given a wide meaning to include a course or program of study involving systemic instruction, training or schooling in areas of scholastic and academic pursuits, vocational skills or personal development that is delivered for a group of children or students or to an individual child or student in the form of lessons or classes, or a unit or module that forms part of a larger course. It needs to have elements of interactive teaching, ongoing support and guidance, assessment, monitoring and the provision of feedback. Each of your personalised education programs provides a systematic training schedule for the child. You have provided documents which demonstrate interactive teaching, ongoing guidance, assessment, monitoring, and provision of feedback. As such your personalised education programs meet the requirements to be a ‘course of education’. | Detailed Reasoning - Special programs designed specifically for children or students (of all ages) with disabilities: Paragraph 19 of GSTR 2002/1 provides that a special program is one designed specifically to meet the special needs of children or students (of all ages) with disabilities, to reduce or prevent the impact of disabilities for students (of all ages) or children with disabilities, or not made available to people generally. Paragraph 20 of GSTR 2002/1 explains that the program as a whole must be recognised as a special program, though it is not necessary that every part of the course is ‘special’. What needs to be considered is the whole of the circumstances of the creation and delivery of the program to decide whether it is designed specifically for children or students with disabilities. Relevant matters include the character of the program that is provided which may be established by considering its content, where it is delivered and how it will be delivered. Paragraphs 33 and 34 of GSTR 2002/1 provides that a disability exists where an individual has difficulty in executing activities or has problems being involved in life situations because some body function or structure is impaired. This would include, but is not limited to, conditions such as a learning disability/specific learning difficulty (including dyslexia), autism spectrum disorder, physical disability, an emotional disorder, a language disorder, a hearing impairment, a visual impairment or an intellectual disability that causes the individual difficulty in executing activities or problems involving life situations. All the children you teach have disabilities as described in GSTR 2002/1. Your programs are designed specifically for children with disabilities. Your personalised education programs involve assessing a child’s development and modifying your specific programs, which are designed specifically for children with disabilities, in order to best meet that individual child’s particular disabilities and needs. It is considered that your personalised education programs meet the definition of a special education course under section 195-1 of the GST Act and the supply of these programs are therefore GST-free under section 38-85 of the GST Act.