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1 Are you making a GST free supply of education courses under section 38-85 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) when you supply your X language courses?

1 No, you are not making GST-free supplies of education courses. This ruling applies for the following period : XX/XX/XXXX to XX/XX/XXXX The scheme commenced on: XX/XX/XXXX

You are an Australian private company. Your ABN has been active since XX/XX/XXXX. You registered for GST effective XX/XX/XXXX. You supply courses that are designed to help enrolled students learn the X language. Your courses are preparatory in nature and focus on providing training, strategies, and practice resources for various X language tests. Your courses may be delivered online, on campus (in person), or a hybrid arrangement of both online and in person. Course durations range between X weeks and X weeks. All courses must be taken in a continuous block over the chosen enrolment duration. Your courses are a fixed curriculum that covers essential aspects of the relevant test. The structure remains consistent for all enrolled students. The structure of your courses does not change if they are delivered online, on campus, or in hybrid format. You advertise your courses through your website, ads, and social media channels. All course materials are developed by you. You do not source materials from external providers. You provide students with interactive materials such as online platform access, live classes, and study materials.

Students engage with mentors and staff throughout the course to receive one-on-one and tailored feedback. Student performance is tracked through various means including mock test performance. You do not impose formal pass or fail requirements for your courses. Instead, students undergo internal evaluations and receive feedback throughout their course enrolment. You provide a certificate of completion once students successfully complete a course. Your courses are open to all students in Australia. Students may re-enrol if they do not meet their goals. You are not a registered training organisation. You are not accredited or recognised by any Australian government education authority. You are not affiliated, approved, or licensed with any of the X language test providers that your courses prepare students for. You do not provide courses on their behalf. The official tests by these providers are not included in your courses. Students must book the tests separately. The providers advertise their courses as having wide-use applications such as proof of competency for academia, government, or employment purposes.

All of your revenue comprises of student fees. You do not receive any funding, subsidies or third party payments. Students may either pay in full before enrolment or opt for an instalment plan. Your courses are offered only to students based in Australia. You have staff including academic tutors, administrative support, IT support, and marketing personnel. Your administrative support and IT support are available on an ongoing basis to ensure access to your online platform and resources. Your course fees include GST.

A New Tax System (Goods and Services Tax) Act 1999 section 38-85 A New Tax System (Goods and Services Tax) Act 1999 section 195-1 Higher Education Support Act 2003 section 16-1 Income Tax Assessment Act 1997 section 995-1

In these reasons for decision: •                     'GST Act' refers to A New Tax System (Goods and Services Tax) Act 1999 •                     Words and phrases marked with an asterisk (*) are defined terms in section 195-1 of the GST Act unless otherwise specified. An education course is GST free if it satisfies the requirements of section 38-85 of the GST Act. A supply is GST-free if it is a supply of: (a)          an *education course; or (b)          administrative services directly related to the supply of such a course, but only if they are supplied by the supplier of the course. The term 'education course' is defined in section 195-1 of the GST Act to mean the following: (a)          a *pre-school course; or (b)          a *primary course; or (c)           a *secondary course; or (d)          a *tertiary course; or (e)          (Repealed by No 143 of 2007) (f)            a *special education course; or (g)          an *adult and community education course; or (h)          an *English language course for overseas students; or (i)            a *first aid or life saving course; or (j)            a *professional or trade course; or

(k)           a *tertiary residential college course. We will address whether your courses meet the criteria of 'adult and community education course' or 'professional or trade course' as, on the facts, no other course types are relevant to you. Adult and community education course An adult and community education course is defined in section 195-1 of the GST Act as: adult and community education course means a course of study or instruction that is likely to add to the employment related skills of people undertaking the course and: (a) is of a kind determined by the *Student Assistance Minister to be an adult and community education course and is provided by, or on behalf of, a body: (i) that is a *higher education institution; or (ii) that is recognised, by a State or Territory authority, as a provider of courses of a kind described in the determination; or (iii) that is funded by a State or Territory on the basis that it is a provider of courses of a kind described in the determination; or (b) is determined by the Student Assistance Minister to be an adult and community education course. Higher education institutions are the providers defined in section 16-1 of the

Higher Education Support Act 2003 to be those either listed or approved by the Minister. You are not a higher education institution. The Student Assistance Minister has made a determination in relation to adult and community education courses in A New Tax System (Goods and Services Tax) (Adult and Community Education Courses) Determination 2016 . Paragraphs 5 and 6 set the kinds of courses determined to be adult and community education courses. The entities that may provide adult and community education courses under paragraph 5 must be a higher education institution, or a recognised provider by a State or Territory authority or funded by a State or Territory authority. Paragraph 6 requires that the entity be a non-profit body corporate. As you are not a higher education institution, State or Territory authority recognised provider, State or Territory authority funded provider, or non-profit body corporate, you cannot provide adult and community education courses. Professional or trade course A professional or trade course is defined in section 195-1 of the GST Act as: professional or trade course means a course leading to a qualification that is an *essential prerequisite: (a)

for entry to a particular profession or trade in Australia; or (b) to commence the practice of (but not to maintain the practice of) a profession or trade in Australia. Essential prerequisite means: a qualification is an essential prerequisite in relation to the entry to, or the commencement of the practice of, a particular profession or trade if the qualification is imposed: (a) by or under an *industrial instrument; or (b) if there is no industrial instrument for that profession or trade but there is a professional or trade association that has uniform national requirements relating to the entry to, or the commencement of the practice of, the profession or trade concerned - by that association; or (c) if neither paragraph (a) nor (b) applies but there is a professional or trade association in a State or Territory that has requirements relating to the entry to, or the commencement of the practice of, the profession or trade concerned - by that association. Industrial instrument is given meaning by section 995-1 of the Income Tax Assessment Act 1997 : (a) an *Australian law; or (b) an award, order, determination or industrial agreement in force under an *Australian law.

Australian law under section 995-1 of the ITAA 1997 means a Commonwealth, State or Territory law. Your courses need to lead to a qualification that is essential under Australian law or professional trade association requirements for entry or commencement of a particular profession or trade. Goods and Services Tax Ruling GSTR 2003/1 Goods and services tax: supplies that are GST-free as professional or trade courses (GSTR 2003/1) provides when a course meets these requirements. Paragraphs 65 to 68 of GSTR 2003/1 expands on our view of what a 'particular' profession or trade means. 65. The reference in paragraph (a) of the definition of a 'professional or trade course' and in the definition of 'essential prerequisite', in section 195-1, to a 'particular profession or trade' establishes a requirement that the qualification be specific to the profession or trade in question. 66. Qualifications that are general in nature and that relate to the entry to, or the commencement of the practice of, a number of professions or trades, are not essential prerequisites for entry to, or to commence the practice of, a particular profession or trade. 67.

Courses that you supply for general knowledge, or for personal development, would not ordinarily be professional or trade courses. This is because they lack a sufficiently direct link between the qualification they lead to and the requirement that the qualification be for entry to, or to commence the practice of, a particular profession or trade. Example 6 - a general qualification 68. To become a taxi driver, under a State law, a person is required to hold a current motor vehicle driver's licence. However, such a licence is obtained to enable a person to drive a motor vehicle generally and is a requirement for many occupations. Doing a driving course to obtain a motor vehicle driver's licence does not lead to a qualification that is an essential prerequisite for entry into a particular profession or trade. The qualification is generic in nature and not for a particular profession. The driving course is not a professional or trade course.

The term 'particular' does not refer to a broad range of professions that may impose a requirement. Instead, 'particular' is more akin to 'specific' professions. Qualifications that have general application do not have a direct link to a specific profession or trade. Your courses are preparatory in nature for the purpose of providing students with experience and knowledge to achieve a competency rating in the relevant X language tests. These organisations advertise the broad applications that their qualifications provide and their uses in proving competency for academia, government, or employment purposes. As these are broad applications, your preparatory courses cannot lead to a qualification that is an essential prerequisite for entry to, or commencement of, a particular profession or trade. This broad acceptance falls outside the meaning of particular profession or trade and essential prerequisite. Your courses are not GST-free under section 38-85 of the GST Act as they are not adult and community education courses and they are not professional or trade courses. They will be a taxable supply provided you satisfy the requirements of section 9-5 of the GST Act.