Private ruling: GST and Education
Published: January 2012

Ruling: Q1: Is your supply of short courses, a GST-free supply where the courses consist of one or more individual units of competency? | A1: Yes

Relevant facts and circumstances: This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling. You are a company registered for the goods and services tax (GST). You are a registered training organisation (RTO) You provide nationally accredited training courses. The courses you provide are 'Short Courses' consisting of one or more individual Units of Competency delivered to individuals or groups that require such training and certification for their employment, These units are mandatory training requirements for staff working in industry. Regulatory Authorities in each state now require all appropriate staff to undertake this training if they wish to maintain their accreditation. The training you deliver is industry specific and employment / continual employment based. You do not deliver any training that is 'for fun' or 'for interest'. You do not receive funding from a State or Territory authority. This application is strictly limited to the Accredited Training services you provide to individuals and company personnel so that they may maintain their accreditation.

Relevant legislative provisions: All references are to the A New Tax System (Goods and Services Tax) Act 1999 : Section 9-5. | Section 9-30. | Section 38-85. | Section 195-1

Reasons for decision: Summary: GST is payable on taxable supplies. A supply is a taxable supply where the requirements of section 9-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), are met. Section 9-5 provides that you make a taxable supply if: · the supply is made for consideration · the supply is made in the course or furtherance of an enterprise that · you carry on · the supply is connected with Australia · you are registered, or required to be registered for GST. However, the supply is not a taxable supply to the extent that it is GST-free or input taxed. In your case, you satisfy the requirements of section 9-5 of the GST Act. That is, you supply training courses for consideration. The supply is made in the course or furtherance of an enterprise that you carry on. These supplies are connected with Australia, and you are registered for GST. There are no provisions in the GST Act or any other Act under which your supplies of the courses could be input taxed. Hence, what remains to be determined is whether your supply of the short courses, are GST-free. A supply of an education course, as defined in the GST Act, is GST-free under section 38-85 of the GST Act. Education course is defined under section 195-1 of the GST Act to include among other courses a tertiary course. Tertiary course is defined in section 195-1 of the GST Act: tertiary course means: (a) a course of study or instruction that is a tertiary 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 tertiary course for the purposes of this Act No determination has been made under paragraph (b) of the definition of tertiary course. However, the Education Minister has made a determination under subsection 5D(1) of the Student Assistance Act 1973 for the purposes of that Act called Student Assistance (Education Institutions and Courses) Determination 2009 (No. 1) (Determination). Under the Determination, accredited vocational education and training courses provided by RTO and Higher Education institutions are tertiary courses. All courses that are covered by the scope of your RTO registration are accredited vocational education and training courses. It needs to be established whether the short courses provided by you are tertiary courses. You are an RTO, and the courses are accredited vocational education and training courses, as they are encompassed by the scope of your RTO registration. Hence, these courses are tertiary courses. Accordingly the short courses are GST-free education courses 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.