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Is the entity, a sports and recreational centre, making a GST-free supply under paragraph 38-85(a) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) when it supplies aquatic tuition?

No, the entity is not making a GST-free supply under paragraph 38-85(a) of the GST Act, when it supplies aquatic tuition.

The entity is a sports and recreational centre which offers tuition in aquatic skills. It provides this tuition both to members and the public. The tuition is based on a multi-stage swimming and water safety skills programme. The entity is not registered or approved by the relevant State or Territory body or authority which has the responsibility for the registration or approval of such courses.

Section 38-85 of the GST Act provides that an education course is GST-free. The definition of 'education course' in section 195-1 of the GST Act includes a first aid or life saving course.

Paragraph (a) of the definition of a first aid or life saving course states that such a course is:

A course of study or instruction that principally trains individuals in one or more of the following: i) first aid, resuscitation or other similar life saving skills including ii) aquatic survival skills, but not including swimming lessons; or iii) surf life saving ; or iv) aero-medical rescue.

If the course principally provides tuition in any or all of the above skills then paragraph (a) of the definition of a first aid or life saving course is satisfied.

Paragraph (b) of the definition requires that the first aid or life saving course must be provided by a body that is: i) registered (or otherwise approved) by a State or Territory authority that has the responsibility for registering (or otherwise approving) bodies that provide such courses; or ii) approved to provide such courses by a State or Territory body that has responsibility for approving the provision of such courses.

The entity is not registered or approved by a State or Territory body or authority which has the responsibility for undertaking such activities. As such the requirement for paragraph (b) of the definition is not satisfied.

As the course supplied by the entity does not satisfy the requirements of both paragraphs of the definition outlined above it fails to satisfy the definition of a first aid or life saving course and it is not GST-free as a first aid or life saving course