Issue
Is the entity, a training organisation, 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 a vocational education and training program?
Decision
Yes, the entity is making a GST-free supply under paragraph 38-85(a) of the GST Act when it supplies a vocational education and training program.
Facts
The entity is a registered training organisation. The entity provides a vocational education and training program.
The entity is registered for goods and services tax (GST).
Reasons for Decision
Paragraph 38-85(a) of the GST Act provides that the supply of an education course is GST-free.
The definition of an education course in section 195-1 of the GST Act includes a tertiary course.
A tertiary course is defined in section 195-1 of the GST Act to mean a course of study or instruction that is a tertiary course as determined by the Education Minister under subsection 5(D)(1) of the Student Assistance Act 1973 (SAA).
The Student Assistance Act Determination (No. 1999/2)(SAA Determination) describes the educational institutions and courses that are approved for the purposes of subsection 5(D)(1) of the SAA. A vocational education and training program that is provided by a registered training organisation is specified in this Determination as one type of tertiary course.
In this case, the entity is a registered training organisation that provides a vocational education and training program and as such, the program is a tertiary course as determined by the Education Minister under subsection 5(D)(1) of the SAA.
Therefore, as the vocational education and training program is a tertiary course, the entity is supplying an education course that is GST-free under paragraph 38-85(a) of the GST Act.