Goods and Services Tax Determination GSTD 2000/11





Appendix: 9. Courses undertaken to gain qualifications are GST-free if the qualifications are an essential prerequisite for entry to employment in a trade, profession or occupation. The course must be one which leads to the commencement of a particular trade or profession, not a course which enhances the skills or employment prospects of someone who is already employed in that trade or profession. 10. To be an essential prerequisite, as defined in section 195-1 of the GST Act, in relation to the entry to a particular profession or trade, the qualification must be imposed: 11. A qualification need not be from a recognised education provider - for example, the exemption could extend to: | A qualification will not be GST-free merely because it is required by a particular employer or group of employers: 12. A vocational education and training programme (as defined by the Education Minister) [F5] means: Commissioner of Taxation 15 November 2000 Not previously issued in draft form


This document was published prior to 1 July 2010 and was a public ruling for the purposes of former section 37 of the Taxation Administration Act 1953 and former section 105-60 of Schedule 1 to the Taxation Administration Act 1953. | From 1 July 2010, this document is taken to be a public ruling under Division 358 of Schedule 1 to the Taxation Administration Act 1953. | A public ruling is an expression of the Commissioner's opinion about the way in which a relevant provision applies, or would apply, to entities generally or to a class of entities in relation to a particular scheme or a class of schemes. | If you rely on this ruling, the Commissioner must apply the law to you in the way set out in the ruling (unless the Commissioner is satisfied that the ruling is incorrect and disadvantages you, in which case the law may be applied to you in a way that is more favourable for you - provided the Commissioner is not prevented from doing so by a time limit imposed by the law). You will be protected from having to pay any underpaid tax, penalty or interest in respect of the matters covered by this ruling if it turns out that it does not correctly state how the relevant provision applies to you. | [Note: This is a consolidated version of this document. Refer to the Legal Database (http://law.ato.gov.au) to check its currency and to view the details of all changes.] | This Determination applies [to tax periods commencing] both before and after its date of issue. However, this Determination will not apply to taxpayers to the extent that it conflicts with the terms of a settlement of a dispute agreed to before the date of issue of this Determination (see paragraphs 75 and 76 of Taxation Ruling TR 2006/10). | Decision: 1. The supply of commercial pilot training may be GST-free if it is an education course which is defined to include, amongst other things, tertiary courses and professional and trade courses. | 2. The supply of an education course is GST-free. A supply of administrative services that are directly related to the supply of the education course will also be GST-free if those services are supplied by the course provider. [F1] | 3. The term education course is defined in the GST Act to include among other things a tertiary course and a professional and trade course. [F2] A tertiary course is a course of study or instruction determined by the federal Education Minister to be a tertiary course. Tertiary courses include vocational education and training programmes. [F3] | 4. The training courses required to obtain a Commercial Pilots licence and additional qualifications, such as a Command Instrument Rating (CIR) may be GST-free as a tertiary course defined in the GST Act. | 5. Where a vocational education and training programme includes a commercial pilot training course and that course is provided by a registered training organisation or a higher education institution, it satisfies the requirements of a tertiary course. As such, the course will be GST-free as an education course. | 6. Where a commercial pilot course also satisfies the definition of a professional and trade course leading to an essential pre-requisite for entry into the profession of a commercial pilot, this course will be GST-free. This determination sets out which training courses are considered to satisfy the definition in the GST Act of a professional and trade course and those that are not professional and trade courses. In addition, the determination covers GST-free tertiary courses. | 7. The following courses will be GST-free as a professional and trade course: | GST-free tertiary courses and/or qualifications: 8. The following courses will NOT be GST-free as a professional and trade course, but will be GST-free as a tertiary course: | Note : A course and/or qualifications will be GST-free as tertiary courses if the course/qualification is accredited and provided by a higher education institution or a registered training organisation. These courses will be GST-free notwithstanding that they are not professional and trade courses for the purposes of the GST Act.


Related rulings: TR 2006/10
Legislative references: ANTS(GST) A99 38-85 ANTS(GST) A99 195-1 ITAA 1997 995-1 Civil Aviation Regulations 1988 5.104 Civil Aviation Regulations 1988 5.104(1)(c) Civil Aviation Regulations 1988 40.7.1 Students Assistance Act 1973 3(1) Students Assistance Act 1973 5D(1) TAA 1953 Sch1 Div 358
Subject references: education course goods & services tax GST supply professional and trade course taxable supply