GST and return to work coordinator courses

Is the entity, a supplier 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 a return to work coordinator course?

No, the entity is not making a GST-free supply under section 38-85 of the GST Act when it supplies a return to work coordinator course. The entity is making a taxable supply under section 9-5 of the GST Act.

The entity is a supplier of training courses. In this instance, the entity is supplying return to work coordinator courses.

The return to work coordinator course is accredited with workcover authorities in the State or Territory in which it is provided.

In some States and Territories, the workers compensation legislation provides that it is mandatory for certain employers to have a return to work coordinator. The legislation does not require return to work coordinators to possess any particular qualifications.

There are no national, State or Territory associations for return to work coordinators.

The entity is registered for goods and services tax (GST). The supply satisfies the other positive limbs of section 9-5 of the GST Act.

Section 38-85 of the GST Act provides that the 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'. None of the other courses specified in section 195-1 of the GST Act are applicable.

A '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: • for entry to a particular profession or trade in Australia; or • to commence the practice of (but not to maintain the practice of) a profession or trade in Australia.

An 'essential prerequisite' is defined in section 195-1 of the GST Act to mean a qualification in relation to the entry to a particular profession or trade if the qualification is imposed: • by or under an industrial instrument; or • 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 entry to, or the commencement of the practice of, the profession or trade concerned - by that association; or • 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.

Section 195-1 of the GST Act defines the term 'industrial instrument' as having the same meaning as that in section 995-1 of the Income Tax Assessment Act 1997 (ITAA 1997).

Section 995-1 of the ITAA 1997 provides that an industrial instrument means: • an Australian law; or • an award, order, determination or industrial agreement in force under an Australian law.'

In this case, some States or Territories have legislation which create an onus on an employer to have a return to work coordinator. However, that State or Territory legislation does not require a person engaged as a return to work coordinator to possess any essential prerequisite qualifications. Therefore, it is possible for a person to perform the tasks of a return to work coordinator without having regard to any industrial instrument. Furthermore, there are no relevant professional or trade associations that impose essential prerequisite requirements upon return to work coordinators.

As the return to work coordinator course does not lead to an 'essential prerequisite', it cannot be a professional or trade course under section 195-1 of the GST Act.

In addition, as the requirements of the other education courses listed in section 195-1 of the GST Act are not met, the entity is not making a GST-free supply under section 38-85 of the GST Act.

The entity is registered for GST and the supply satisfies the other positive limbs of section 9-5 of the GST Act. Furthermore, the supply is neither GST-free under Division 38 of the GST Act nor input taxed under Division 40 of the GST Act. Therefore, the entity is making a taxable supply under section 9-5 of the GST Act when it supplies a return to work coordinators course.