Issue
Is the entity, a not-for-profit body corporate, making a GST-free supply of an adult and community education (ACE) course under section 38-85 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it supplies a course in a student's home on a one-to-one basis?
Decision
No, the entity is not making a GST-free supply of an ACE course under section 38-85 of the GST Act when it supplies a course in a student's home on a one-to-one basis.
As the course is provided by way of private tuition, the entity is making a taxable supply under section 9-5 of the GST Act.
Facts
The entity is a not-for-profit body corporate that is registered for goods and services tax (GST).
The entity supplies a training course that provides a basic level of skill in the particular area. The course is presented by way of one-to-one training in the student's home.
The supply satisfies the other positive limbs of section 9-5 of the GST Act.
Reasons for Decision
The supply of an 'education course' is GST-free under section 38-85 of the GST Act. 'Education course' is defined in section 195-1 of the GST Act to include, amongst other things, an ACE course.
Section 195-1 of the GST Act provides, amongst other things, that an ACE course must be of a kind determined by the Education Minister to be an adult and community education course.
The Minister's determination is contained in A New Tax System (Goods and Services Tax)(Adult and Community Education Courses) Determination 2000 (the Determination).
One of the requirements for a course to be of a kind described in the Determination is that the course must not be a course that is provided by way of private tuition to an individual.
The entity's course is provided to students on a one-to-one basis in their own homes. This method of provision is by way of private tuition. As such, the course is not of a kind specified in the Determination and is not an ACE course that is GST-free 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 not GST-free under any other provision in Division 38 of the GST Act, nor is it 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 course in a student's home on a one-to-one basis.