A New Tax System (Goods and Services Tax) (Adult and Community Education Courses) Determination 2016

Administered by Department of the Treasury

Legislation au F2016L01564 In force Legislative Instrument

Legislation content

 

 

 

EXPLANATORY STATEMENT

 

Issued by the authority of the Minister for Social Services

 

A New Tax System (Goods and Services Tax) Act 1999

 

A New Tax System (Goods and Services Tax) (Adult and Community Education Courses) Determination 2016

 

 

Purpose

 

Paragraph 177-10(3)(a) and section 195-1 of the A New Tax System (Goods and Services Tax) Act 1999 (the Act) have the effect of providing that the Minister may determine what is an adult and community education course for the purposes of the Act.

 

Since 1 July 2000, the Act has provided that a supply of an adult and community education course as determined by the Minister will be GST-free.

 

This Determination has been made to describe the kinds of courses, and the courses, that are an adult and community education course for the purposes of the Act.

 

This Determination will commence on 1 October 2016 following the cessation of the A New Tax System (Goods and Services Tax) (Adult and Community Education Courses) Determination 2000 (the 2000 Determination) on that date. The 2000 Determination ceases operation on 1 October 2016 due to the sunsetting provisions in the Legislation Act 2003.

 

This Determination is in substantially the same terms as the 2000 Determination.

 

The Determination determines the kinds of adult and community education courses, and the courses, for the purposes of the definition of “adult and community education course” in section 195-1 of the Act.  An adult and community education course coming within the definition in the Act will not be subject to GST.

 

The determination is a legislative instrument for the purposes of the Legislation Act 2003.

 

Commencement

 

This Determination commences on 1 October 2016.

 

Consultation

 

Treasury has been consulted in the preparation of this Determination.

 

Regulation Impact Statement (RIS)

 

This Determination is not regulatory in nature and will have no regulatory impact on individuals, business, activity or competition.

 

Explanation of the provisions

 

Section 1 of the Determination states the name of the Determination.

Section 2 states that the Determination commences on 1 October 2016.

Section 3 contains an interpretation provision for the Determination which makes clear that a reference in the Determination to the word Act is a reference to the A New Tax System (Goods and Services Tax) Act 1999.

Section 4 provides that the purpose of the Determination is to determine the kinds of courses, and the courses, that are adult and community education courses for the definition of adult and community education course in section 195-1 of the Act.

 

A note to section 4 provides that under section 38-85 of the Act, the supply of an adult and community education course is GST-free.  The note then refers to subsection 9-30 (1) and Division 38 of the Act which set out the definition of GST-free for the purposes of the Act.

 

Section 5 of the Determination sets out the kinds of courses determined by the Minister to be adult and community education courses under paragraph 195-1(a) of the Act.

Subsection 5(1) of the Determination provides that for paragraph (a) of the definition of adult and community education course in section 195-1 of the Act, a course of study or instruction of the kind mentioned in subsection 5(2) is determined to be an adult and community education course.

Subsection 5(2) provides that the course of study or instruction must:

 

(a) not be a course mentioned, in paragraph (a), (b), (c), (d), (f), (h), (i), (j) or (k) of the definition of education course in section 195-1 of the Act; and

(b) be a course that is available to adults in the general community; and

(c) not be a course that is provided by, or at the request of an employer to the employees of that employer; and

(d) not be a course that is provided by, or at the request of an organisation to the members of that organisation, except an organisation for which membership is open to adults in the general community; and

(e) not be a course that is provided by way of private tuition to an individual.

 

A note to subsection 5(2) then refers to further requirements a course of study or instruction must satisfy that are set out in the definition of adult and community education course in section 195-1 of the Act.

 

Section 6 of the Determination sets out the kinds of courses determined by the Minister to be adult and community education courses under paragraph 195-1(b) of the Act.

Subsection 6(1) of the Determination provides that for paragraph (b) of the definition of adult and community education course in section 195-1 of the Act, a course of study or instruction mentioned in subsection 6(2) is determined to be an adult and community education course.

Subsection 6(2) provides that the course of study or instruction must:

 

(a) be a course of the kind described in subsection 5(2); and

(b) be provided by, or on behalf, of a body that:

(i) is a body corporate that operates on a not-for-profit basis; and

(ii) has not been refused recognition, or disqualified, by a State or Territory authority as a provider of courses of the kind described in subsection 5(2) on the basis of failing to meet or maintain the standards required by that authority.

 

A note to subsection 6(2) then refers to further requirements a course of study or instruction must satisfy that are set out in the definition of adult and community education course in section 195-1 of the Act.

 


Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

A New Tax System (Goods and Services Tax) (Adult and Community Education Courses) Determination 2016

The A New Tax System (Goods and Services Tax) (Adult and Community Education Courses) Determination 2016 (the Determination) is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview of the Legislative Instrument

The Determination is made under paragraph 177-10 (3) (a) of the A New Tax System (Goods and Services Tax) Act 1999 (the Act).

This Determination will commence on 1 October 2016 following the cessation of the A New Tax System (Goods and Services Tax) (Adult and Community Education Courses) Determination 2000 on that date. The 2000 Determination ceases operation on 1 October 2016 due to the sunsetting provisions in the Legislation Act 2003.

Under section 38-85 of the Act, the supply of an adult and community education course is GST-free.

The Determination outlines the kinds of courses, and the courses, that are adult and community education courses for the definition of adult and community course in section 195-1 of the Act.

Human rights implications

The Determination engages the following human rights:

Right to Education

The Determination engages the right to education contained in Article 13 of the International Covenant on Economic, Social and Cultural Rights (ICESCR).

By determining that adult and community education courses are GST-free, the Determination may enable students to access education and therefore will be compatible with human rights.

Conclusion

The Determination is compatible with human rights as it enables students to access education.

Minister for Social Services, the Hon Christian Porter MP

Overview

The A New Tax System (Goods and Services Tax) (Adult and Community Education Courses) Determination 2016 was enacted to delineate the types of courses that qualify as adult and community education courses under the A New Tax System (Goods and Services Tax) Act 1999. This Determination, issued under the authority of the Minister for Social Services, aims to clarify which courses are exempt from GST as adult and community education courses. It was introduced to address the gap left by the cessation of the 2000 Determination, which expired due to the sunsetting provisions in the Legislation Act 2003. The policy objective is to ensure that adult and community education courses remain accessible and affordable by maintaining their GST-free status, thereby facilitating broader participation in education for the general community.

Scope and Application

The A New Tax System (Goods and Services Tax) (Adult and Community Education Courses) Determination 2016, issued under the authority of the Minister for Social Services, outlines specific types of courses that are designated as adult and community education courses for the purposes of the A New Tax System (Goods and Services Tax) Act 1999. This Determination applies to entities and individuals involved in the supply of courses that meet the criteria set out in the Determination. Such courses are exempt from Goods and Services Tax (GST) under the Act, making them more accessible to the general public. The Determination specifies that it applies nationally across Australia, as it is a legislative instrument under the Commonwealth's authority. Notably, the Determination excludes courses that are already specified in other sections of the Act or those provided by employers or specific organisations, unless these organisations are open to adults in the general community. The Determination is compatible with human rights, particularly the right to education, as it allows for easier access to educational opportunities by exempting certain courses from GST. The Determination also clarifies that it does not have any regulatory impact and is not subject to subordinate instruments that would extend or restrict its application beyond the stated provisions. It commences on 1 October 2016, following the cessation of the 2000 Determination due to sunsetting provisions in the Legislation Act 2003. The stated purpose of the Determination is to ensure continued clarity and compliance with the Act regarding which courses qualify as adult and community education courses, thus maintaining the GST-free status for these courses.

Key Provisions

The A New Tax System (Goods and Services Tax) (Adult and Community Education Courses) Determination 2016 (the Determination) outlines specific types of courses that qualify as adult and community education courses, which are exempt from GST under the A New Tax System (Goods and Services Tax) Act 1999 (the Act). According to Section 5 of the Determination, an adult and community education course must not fall into any of the categories specified in the Act’s definition of an education course (subsection 5(2)(a)) and must be available to adults in the general community (subsection 5(2)(b)). Additionally, it must not be provided by or at the request of an employer for its employees (subsection 5(2)(c)), nor by or at the request of an organisation whose membership is not open to the general adult community (subsection 5(2)(d)), and must not be provided through private tuition to an individual (subsection 5(2)(e)). Section 6 of the Determination further specifies that the course must be offered by a not-for-profit body corporate that has not been refused recognition or disqualified by a state or territory authority (subsection 6(2)). The Determination imposes specific obligations on entities providing adult and community education courses to ensure compliance with the Act. Providers must ensure that their courses meet the criteria set out in the Determination, such as being available to the general adult community and not being provided for employees or members of specific organisations. Moreover, these courses must be offered by a not-for-profit body corporate that has not been disqualified by state or territory authorities. Failure to meet these criteria could result in the courses being subject to GST, which would increase the cost for students. Breaches of the provisions outlined in the Determination may lead to civil or criminal penalties. Although specific penalties are not detailed in the Determination, breaches of the Act may incur financial penalties under the relevant tax laws. Additionally, failure to comply with the requirements for GST exemption could result in audits and investigations by the Australian Taxation Office, potentially leading to financial liabilities and reputational damage for the non-compliant entities. The exact penalties would depend on the specific breach and the provisions of the Act.

Legal classification tags

Area of Law
Taxation Law
Instrument
Determination
Concepts
Definitions & Interpretation
Commencement Provisions
Offence Provisions

Interactions

Authorises

All Versions

Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.