Private ruling: Goods and services tax (GST) and education courses
Published: March 2014

Ruling: Q1: Is GST payable on your supplies of the units of competency from the training package? | A1: No.

Relevant facts and circumstances: You are registered for GST. You are a Registered Training Organisation (RTO). You supply a number of units of competency from the training package. They are certain units of competency. These units of competency are within the scope of your RTO registration. You supply the units of competency to licensed electricians to enable them to obtain accreditation from the national industry association to design and install grid connected solar systems.

Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999 subsection 7-1(1) | A New Tax System (Goods and Services Tax) Act 1999 section 9-5 | A New Tax System (Goods and Services Tax) Act 1999 paragraph 38-85(a) | A New Tax System (Goods and Services Tax) Act 1999 section 9-40 | A New Tax System (Goods and Services Tax) Act 1999 section 195-1

Reasons for decision: Summary: You are making GST-free supplies of education courses. Therefore, GST is not payable on your supplies of the units of competency. | Detailed Reasoning - Detailed reasoning: GST is payable by you on your taxable supplies. You make a taxable supply where you satisfy the requirements of section 9-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), which states: You make a taxable supply if: (a) you make the supply for *consideration; and (b) the supply is made in the course or furtherance of an *enterprise that you *carry on; and (c) the supply is *connected with Australia; and (d) 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) Paragraph 38-85(a) of the GST Act provides that a supply of an education course is GST-free. Education course is defined in section 195-1 of the GST Act to include a tertiary course. Tertiary course is defined in section 195-1 of the GST Act to include a course of study of instruction that is a tertiary course determined by the Education Minister under subsection 5D(1) of the Student Assistant Act 1973 for the purposes of that Act. Student Assistance (Education Institutions and Courses) Determination 2009 (No. 2) is such a determination. This determination provides that Vocational Education and Training courses provided by Registered Training Organisations and that are within the scope of that registration are tertiary courses. You are providing Vocational Education and Training courses; you are an RTO and the courses in question are within the scope of your RTO registration. Therefore, these courses are tertiary courses. Therefore, your supplies of these courses are GST-free supplies of education courses. Hence, GST is not payable on your supplies of these courses.