Private ruling: GST and tutoring services
Published: December 2011
Ruling period: Not applicable.
Date scheme commenced: Not applicable

Ruling: Q1: Are the tutoring services supplied by you GST-free supplies as per section 38-85 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)? | A1: No, the tutoring services supplied by you are not GST-free supplies as per section 38-85 of the GST Act

Relevant facts and circumstances: You are registered for Goods and Services Tax (GST) You carry on an enterprise of providing tutoring services to primary and secondary school students. You provide assistance to these students to qualify for their state accredited courses. You provide some of the most basic and essential educational assistance for Australian students. You work closely with the curriculum structured as approved by the State Department of Education. You do not directly provide the assessments or sign off for graduating. You provide these tutoring services during the school hours mainly to the secondary school students when they get free periods. You do not provide these services to the primary school students during the school hours. You also provide these services to individual students at their home. You are not required to be registered with the State Department of Education as an educational service provider. All the courses provided by you are accredited courses for secondary education and other primary education. You believe that you play an aid role in providing these services to students. You do not enter into any agreements or contracts with the schools to provide these tutoring services. You provide these services directly to the students and the schools provide you with the accommodation at the request of the students. You are paid by the students/parents for the services you provide to them and not by the schools. The schools do not request you to provide these services to the students on their behalf. However, they may recommend you to their students.

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.

Reasons for decision: Summary: The supply of 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, amongst other things, a primary course, and a secondary course. According to section 195-1 of the GST Act a primary course means (a) a course of study or instruction that is delivered: (i) in accordance with a primary curriculum recognised by the education authority of the State or Territory in which the course is delivered; and (ii) by a *school that is recognised as a primary school under the law of the State or Territory; or (b) any other course of study or instruction that the *Education Minister has determined is a primary course for the purposes of this Act. (The asterisks in this ruling indicate terms defined under section 195-1 of the GST Act. These terms will be explained where appropriate.) According to section 195-1 of the GST Act a secondary course means: (a) a course of study or instruction that is a secondary course determined by the *Education Minister under subsection 5D (1) of the Student Assistance Act 1973 for the purposes of that Act; or (b) any other course of study or instruction that the *Education Minister has determined is a secondary course for the purposes of that Act. According to section 195-1 of the GST Act a school means: an institution that supplies *pre-school courses, *primary courses, *secondary courses, or *special education courses but not any other *education course. Goods and Services Tax Ruling GSTR 2000/30 provides guidance on supplies that are GST-free as education courses including primary and secondary courses. Paragraph 7 of GSTR 2000/30 provides that a supply of an education course includes tuition, facilities, and other curriculum related activities and instruction. The Macquarie Dictionary defines 'Tuition' as 1. Teaching or instruction, as of pupils, 2. The charge or fee for instruction. Furthermore, the Macquarie Dictionary defines 'Curriculum' as 1. The aggregate of courses of study given in a school, college, university, etc. 2. The regular or a particular course of study in a school, college, etc. In this case, although you provide education courses to primary and secondary school students that are approved by the State Department of Education, you are not a school recognised under the law of the state or territory. You are not registered as a school, college or university to provide these education services to the students. You engage yourself as an aid in assisting the students by providing tutoring services at school and outside of school. You merely tutor students on the education supplied by their respective educational institutions. You do not enter into any agreements or contracts with the schools to provide the tutoring services and that you are paid by the students/parents for the services you provide to them and not by the schools. Therefore, the tutoring services that you provide are not an education course within the meaning of the GST Act and are therefore not GST-free.

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.