GST and assessment of prior learning for credit towards an education course

Is the entity, a professional association, making a GST-free supply under section 38-110 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it assesses the qualifications of a person for the purpose of granting that person a credit that will exempt them from some aspects of an education course?

Yes, the entity is making a GST-free supply under section 38-110 of the GST Act when it assesses the qualifications of a person for the purpose of granting that person a credit that will exempt them from some aspects of an education course.

The entity is a professional association. The entity supplies a service of either assessing the qualifications held by a person or conducting a test to assess a person's knowledge and skills.

The assessment is for the purpose of granting the person a credit that will exempt them from some aspects of an education course.

The entity is registered for goods and services tax (GST).

A supply is GST-free under subsection 38-110(1) of the GST Act when the supply is the assessment or issue of qualifications for the purpose of: • access to education • membership of a professional or trade association • registration or licensing for a particular occupation, or • employment.

The entity supplies a service of either assessing the qualifications held by a person or conducting a test to assess a person's knowledge and skills. The entity's assessment is for the purpose of granting the person a credit that will exempt them from some aspects of an education course. The term 'access to education' is not restricted to mean only entry into a particular course or programme of education. This term also applies to credit towards or exemption from some aspects of a course. As such, the entity's supply is for the purpose of access to education and the supply satisfies the requirements in subsection 38-110(1) of the GST Act.

However, subsection 38-110(2) of the GST Act provides that a supply is not GST-free under subsection 38-110(1) of the GST Act unless the supply is carried out by: • a professional or trade association • an education institution • an entity that is registered by a training recognition authority of a State or Territory in accordance with the Australian Recognition Framework to provide skill recognition (assessment only) services • an authority of the Commonwealth or of a State or Territory, or • a local government body.

The entity is a professional association. Therefore, the entity's supply is not excluded from being GST-free under subsection 38-110(2) of the GST Act.

Accordingly, the entity is making a GST-free supply under section 38-110 of the GST Act when it assesses the qualifications of a person for the purpose of granting that person a credit that will exempt them from some aspects of an education course.