Issue
Is the entity, a provider of training courses, making a GST-free supply under section 38-85 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it supplies an occupational health and safety (OH&S) course?
Decision
Yes, the entity is making a GST-free supply under section 38-85 of the GST Act, when it supplies an OH&S course.
Facts
The entity is a provider of training courses. The entity is providing an OH&S training course. The course provided is a prerequisite to employment in the construction industry, as required by a relevant State law. The course is designed to follow the OH&S Induction Training requirements.
The entity is registered for goods and services tax (GST).
Reasons for Decision
Under section 38-85 of the GST Act, a supply of an education course is GST-free. The definition of 'education course' in section 195-1 of the GST Act includes a 'professional or trade course'.
'Professional or trade course' is defined in section 195-1 of the GST Act to mean:
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 (but not to maintain the practice of) a profession or trade in Australia.
A qualification is an 'essential prerequisite' for the purpose of the definition of professional or trade course, if in relation to the entry to a particular profession or trade, the qualification is imposed under an industrial instrument (as defined in section 195-1 of the GST Act).
'Industrial instrument' is defined in section 195-1 as having the meaning given by section 995-1 of the Income Tax Assessment Act 1997 (ITAA 1997). Section 995-1 of the ITAA defines an 'industrial instrument' to mean: • an Australian law; or • an award, order, determination or industrial agreement in force under an Australian law.
In this case, the entity provides courses that lead to the gaining of qualifications legally required, under the relevant State laws, for entry into an occupation in the construction industry.
As the entity is supplying courses that meet the requirements of a professional or trade course (as defined in section 195-1 of the GST Act), it is making a GST-free supply of an education course under section 38-85 of the GST Act.