Class Ruling CR 2012/19
Date of effect: 1 January 2012

What this ruling is about: 1. This Ruling sets out the Commissioner's opinion on the way in which the relevant provision(s) identified below apply to the defined class of entities, who take part in the scheme to which this Ruling relates. Relevant provision(s) 2. The relevant provisions dealt with in the Ruling are: Class of entities 3. The class of entities to which this Ruling applies consists of higher education providers who have agreed to be named in this class ruling and are listed below: Within this ruling these higher education providers are also collectively referred to as the Universities. 4. Section 16-1 of the Higher Education Support Act 2003 (the HES Act) defines a higher education provider as a body corporate that is approved under Division 16 of that Act. 5. Section 195-1 of the GST Act defines a higher education institution as an entity that is a higher education provider as defined in section 16-1 of the HES Act. 6. All the Universities are higher education institutions and higher education providers. Qualifications 7. The Commissioner makes this Ruling based on the precise scheme identified in this Ruling. 8. The class of entities defined in this Ruling may rely on its contents provided the scheme actually carried out is carried out in accordance with the scheme described in paragraphs 12 to 25 of this Ruling. 9. If the scheme actually carried out is materially different from the scheme that is described in this Ruling, then: 10. This work is copyright. Apart from any use as permitted under the Copyright Act 1968 , no part may be reproduced by any process without prior written permission from the Commonwealth. Requests and inquiries concerning reproduction and rights should be addressed to:

Class of entities or scheme: 3. The class of entities to which this Ruling applies consists of higher education providers who have agreed to be named in this class ruling and are listed below: Within this ruling these higher education providers are also collectively referred to as the Universities. 4. Section 16-1 of the Higher Education Support Act 2003 (the HES Act) defines a higher education provider as a body corporate that is approved under Division 16 of that Act. 5. Section 195-1 of the GST Act defines a higher education institution as an entity that is a higher education provider as defined in section 16-1 of the HES Act. 6. All the Universities are higher education institutions and higher education providers. | Qualifications: 7. The Commissioner makes this Ruling based on the precise scheme identified in this Ruling. 8. The class of entities defined in this Ruling may rely on its contents provided the scheme actually carried out is carried out in accordance with the scheme described in paragraphs 12 to 25 of this Ruling. 9. If the scheme actually carried out is materially different from the scheme that is described in this Ruling, then: 10. This work is copyright. Apart from any use as permitted under the Copyright Act 1968 , no part may be reproduced by any process without prior written permission from the Commonwealth. Requests and inquiries concerning reproduction and rights should be addressed to: 11. This Ruling applies from 1 January 2012. The Ruling continues to apply after 1 January 2012 to all entities within the specified class who entered into the specified scheme during the term of the Ruling. However, this Ruling 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 Ruling (see paragraphs 75 and 76 of Taxation Ruling TR 2006/10). 12. In addition to providing higher education courses to students, the Universities also provide infrastructure for facilities, services and activities that are of direct benefit to the students of the University. 13. Universities were prevented, pursuant to subsection 19-37(2) of the HES Act from imposing a fee on students for use of non academic services or amenities. This subsection states: 14. The HES Act was amended by the Higher Education Legislation Amendment (Student Services and Amenities) Act 2011 which commenced on 3 November 2011. The Explanatory Memorandum states that the amendment will 'allow higher education providers to charge a compulsory student services and amenities fee'. The amendment effectively allows higher education providers to commence charging the fee to students for the 2012 academic year. 15. New subsection 19-37(4) of the HES Act provides an exception to subsection 19-37(2) and allows a higher education provider to require the payment of a 'student services and amenities fee' (SSA Fee). 16. New subsection 19-37(5) of the HES Act defines a student services and amenities fee. This subsection states: 17. The amount of $250 mentioned in paragraph (5)(e) is indexed annually. 18. New section 19-38 of the HES Act limits the way higher education providers can spend the SSA fees they receive. 19. The higher education provider may not spend funds received from SSA fees to support a political party or to support the election of a person as a member of the legislature of the Commonwealth, a State or Territory, or a local government body. 20. The effect of new subsections 19-38(3) and (4) of the HES Act is to require higher education providers to only spend amounts received as SSA fees on the following services: 21. A note at the end of new subsection (4) gives the following examples of allowable expenditure under subsection (4): 22. The SSA fees collected by the Universities may be allocated and expended to various groups to provide the services listed in paragraph 20. However the ultimate responsibility to provide such services to the students lies with the Universities. 23. The services are provided to the general student population. The Universities do not collect the fee in order to provide services or facilities to a particular student or students at the Universities. 24. The Universities are not collecting the SSA fees on behalf or as agent of any third party such as student representative councils. 25. The SSA fee is not a student union membership fee. 26. The SSA fee collected by the higher education providers under the HES Act is consideration for the supply of facilities and/or the supply of administrative services directly related to the supply of an education course. 27. Where the higher education provider makes a GST-free supply of an education course to a student pursuant to section 38-85 of the GST Act and the definitions of education course and tertiary course , the SSA fee charged to that student is consideration for the GST-free supply of facilities and/or administrative services. Note: if a higher education provider charges a SSA fee to a student in relation to a course of study that is not GST-free those facilities and administrative services that the SSA fee is used for are also not GST-free. Goods and Services Tax Ruling GSTR 2001/1 at paragraph 37 discusses non-accredited units - which attract GST. Commissioner of Taxation 28 March 2012 28. A supply of education is GST-free pursuant to Subdivision 38-C of the GST Act. Section 38-85 states: 29. The definition of education course in section 195-1 of the GST Act includes a tertiary course . 30. Student Assistance (Education Institutions and Courses) Determination 2009 (No. 2) defines and specifies approved tertiary courses. 31. The Universities are higher education institutions that make GST-free supplies of undergraduate and post graduate accredited higher education courses. 32. GSTR 2001/1 sets out the Commissioner's guidance on supplies that are GST-free for tertiary education courses. 33. The SSA fee imposed by the Universities will be used to provide facilities similar to those in paragraphs 59 and 60 of GSTR 2001/1 to the general student population. Where the recipient of the supply is undertaking a GST-free education course, the SSA fee is consideration for a GST-free supply or supplies of facilities or services. 34. Paragraph 38-100(b) of the GST Act provides that a supply of membership of a student organisation is not GST-free. If the SSA fee is used to provide a student with membership of a student union, the fee is consideration for a taxable supply. However, the restrictions on use of the fee provided in section 19-38 of the HES Act (paragraphs 18-20 above) appear to preclude the SSA fee being used for this purpose. 35. The following is a detailed contents list for this Ruling: Not previously issued as a draft

Ruling: 26. The SSA fee collected by the higher education providers under the HES Act is consideration for the supply of facilities and/or the supply of administrative services directly related to the supply of an education course. 27. Where the higher education provider makes a GST-free supply of an education course to a student pursuant to section 38-85 of the GST Act and the definitions of education course and tertiary course , the SSA fee charged to that student is consideration for the GST-free supply of facilities and/or administrative services. Note: if a higher education provider charges a SSA fee to a student in relation to a course of study that is not GST-free those facilities and administrative services that the SSA fee is used for are also not GST-free. Goods and Services Tax Ruling GSTR 2001/1 at paragraph 37 discusses non-accredited units - which attract GST. Commissioner of Taxation 28 March 2012


Appendix: 28. A supply of education is GST-free pursuant to Subdivision 38-C of the GST Act. Section 38-85 states: 29. The definition of education course in section 195-1 of the GST Act includes a tertiary course . 30. Student Assistance (Education Institutions and Courses) Determination 2009 (No. 2) defines and specifies approved tertiary courses. 31. The Universities are higher education institutions that make GST-free supplies of undergraduate and post graduate accredited higher education courses. 32. GSTR 2001/1 sets out the Commissioner's guidance on supplies that are GST-free for tertiary education courses. 33. The SSA fee imposed by the Universities will be used to provide facilities similar to those in paragraphs 59 and 60 of GSTR 2001/1 to the general student population. Where the recipient of the supply is undertaking a GST-free education course, the SSA fee is consideration for a GST-free supply or supplies of facilities or services. 34. Paragraph 38-100(b) of the GST Act provides that a supply of membership of a student organisation is not GST-free. If the SSA fee is used to provide a student with membership of a student union, the fee is consideration for a taxable supply. However, the restrictions on use of the fee provided in section 19-38 of the HES Act (paragraphs 18-20 above) appear to preclude the SSA fee being used for this purpose.


What this Ruling is about | NOT LEGALLY BINDING SECTION: | 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. | (2) A higher education provider must not require a person enrolled with, or seeking to enrol with, the provider to pay to the provider or any other entity an amount for the provision to students of an amenity, facility or service that is not of an academic nature, unless the person has chosen to use the amenity, facility or service. | Fees charged by Universities | 49. A fee will be GST-free if it is charged in respect of the provision of facilities and/or the supply of administrative services directly related to the supply of a GST-free education course (but only if the administrative services are supplied by the supplier of that course). | 57. The supply of facilities that are required for the delivery of an education course is GST-free. | 58. As the supply of these facilities is part of the supply of an education course, it is irrelevant whether the amount charged for the supply of facilities is included in the fee you charge for the course or whether it is charged separately. | 60. Many universities levy an Amenities Fee or Miscellaneous Student Activity Fee to help fund the infrastructure of the university. Where this fee is used to make facilities available to the general student population it is GST-free. If the fee relates specifically to a taxable supply or supplies that are made to a particular student or students it is not GST-free. | Example - Amenities fees charged by University | 61. Each year, students enrolled at the University of New Victoria are required to pay an amenities fee. This compulsory fee does not confer membership of any student organisation. The fee is levied to provide facilities and services of direct benefit to the students of the university . | 62. Facilities that are provided include plant and equipment, buildings and lockers. Facilities to make the following services available are also provided: printing and laminating, passport photos, web site, childcare and parking facilities. The amenities fee charged is for a GST-free supply . | 63. However, when students use some of these facilities and services, for example parking and childcare facilities, it is on a user pays basis. The University must account for GST on these supplies, unless the supply is GST-free or input taxed . | Appendix 2 - Detailed contents list


Related rulings: GSTR 2001/1 GSTD 2002/1
Legislative references: ANTS(GST)A 1999 9-5 ANTS(GST)A 1999 3 8-85 ANTS(GST)A 1999 195-1 Student Assistance Act 1973 TAA 1953 Copyright Act 1968
Subject references: education courses educational Institutions goods and services tax GST education GST-free supply higher education institution higher education providers student services fee student amenities and services fee tertiary course university universities