Determination of GST-free education courses
The principal GST legislation - A New Tax System (Goods and Services Tax) Act 1999 ("GST Act") - lists the education courses that are GST-free supplies. These are: "pre-school course, primary course, secondary course, tertiary course, Masters or Doctoral course, special education course, adult and community education course, English language for overseas students course, first-aid or life-saving course, professional or trade course, and tertiary residential college course".
It is the responsibility of the Australian Taxation Office (ATO) to provide advice and rulings on the GST status of activities under the provisions of the GST legislation. This includes advice on whether an activity is GST-free because it meets both the definition of "education course" and any other requirements of the legislation. The ATO’s role includes advice and rulings on the application of the GST legislation itself and interpretation of the provisions of any course determinations made by the Education Minister as described below.
The definitions of several categories of education courses rely on Determinations to be made by the Education Minister.
- "secondary" and "tertiary" courses are identified through reference to the Minister’s existing determination of courses under the Student Assistance Act 1973 - "the SAA Determination". (This version of the Determination (2002/1) came into effect on 1 January 2003 after being signed by the Minister for Education, Science and Training on 17 October 2002.);
For the most recent SAA Determination, see related pages menu
- under the definition of "adult and community education course" the Minister may determine the kinds of courses that are adult and community education courses - "the ACE Determination". Following unanimous agreement by the Ministerial Council of Australian Government and State and Territory Treasurers, the Education Minister made the ACE Determination on 20 June 2000. The Determination was tabled in the House of Representatives and the Senate, on 22 June and 26 June 2000 respectively, and will be subject to disallowance for a period of 15 sitting days of each House. The Determination has the force of law from the time it was signed unless and until disallowed.
- as well as these "generic" determinations, the Minister may make specific determinations under the GST Act to include further courses of study or instruction under the definitions of "primary course", "secondary course", "tertiary course" and "adult and community education course". (No Determinations have yet been made under these powers.)
The Minister will consider requests for additional determinations of education courses in light of Government policy.
- Providers are advised to seek a ruling from the Australian Taxation Office on the GST status of an activity before approaching the Education Minister with a request to use his powers to make a determination. For example, the activity may already be GST-free under existing provisions as part of an education course or as a non-commercial activity of a charitable organisation. (The Department of Education, Employment and Workplace Relations cannot provide tax advice or interpret tax legislation.)
- It is important to note that other provisions of the GST legislation may need to be satisfied for a course that is covered by a determination by the Education Minister to be GST-free. For example, the GST legislation requires that ACE courses covered by a determination by the Minister must also “be likely to add to the employment related skills of people undertaking the course” in order to be GST-free. For further information on this point, see the ATO’s GST ruling GSTR 2000/27
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- The Education Minister may make a determination under the GST Act that expands the GST-free area only with the unanimous agreement of the Ministerial Council of Australian Government and State and Territory Treasurers - see the Intergovernmental Agreement on the Reform of Australian Government-State Financial Relations.
- Once made, determinations must be tabled in both Houses of Parliament. The Parliament may disallow a determination. If disallowed, a determination would cease to have effect from the date of disallowance.