A New Tax System (Goods and Services Tax) Amendment Regulations 2007 (No. 3)

Overview

The A New Tax System (Goods and Services Tax) Amendment Regulations 2007 (No. 3) were introduced to address the need for a more comprehensive framework for ensuring that personal aquatic survival skills courses could be provided GST-free under the A New Tax System (Goods and Services Tax) Act 1999. Enacted by the Parliament of Australia, these regulations aim to enhance the clarity and applicability of the GST provisions for such courses by specifying additional training qualifications required for instructors. This legislative measure was designed to ensure that the supply of first aid or life-saving courses, including personal aquatic survival skills, could be effectively managed within the GST framework, thereby supporting educational entities that provide these vital training services. The regulations took effect on the day they were registered on the Federal Register of Legislative Instruments, following targeted consultations on the competencies to be included.

Scope and Application

The A New Tax System (Goods and Services Tax) Amendment Regulations 2007 (No. 3) amends the A New Tax System (Goods and Services Tax) Regulations 1999 to expand the scope of education courses that can be provided GST free, specifically targeting first aid or life saving courses. These regulations apply to entities providing such courses and individuals who hold the specified qualifications. The geographic reach of these regulations is national, applying across Australia. The regulations specify that a broader range of personal aquatic survival skills courses can be provided GST free if the instructors hold certificates in the specified competencies, which are listed in Schedule 12 and provided by a registered training organisation under the National Training Framework. These regulations ensure that the qualifications meet a nationally recognised standard, thereby extending the application of the Act through subordinate instruments. The Regulations came into effect on the day after their registration on the Federal Register of Legislative Instruments, following targeted consultation on the competencies to be included.

Key Provisions

The A New Tax System (Goods and Services Tax) Amendment Regulations 2007 (No. 3) (the Regulations) amend the A New Tax System (Goods and Services Tax) Regulations 1999 (the Principal Regulations) to specify additional training qualifications for instructors providing first aid or life saving courses that are GST free. According to Section 177-15 of the A New Tax System (Goods and Services Tax) Act 1999 (the Act), the Governor-General may make regulations to prescribe matters required or permitted by the Act, and Section 38-85 of the Act provides that the supply of an ‘education course’ is GST free. The Regulations aim to broaden the scope of personal aquatic survival skills courses that can be provided GST free by specifying additional training qualifications under sub paragraph (b) (vi) of the definition of a first aid or life saving course. Under the Regulations, an instructor who holds a certificate in the specified qualifications listed in Schedule 12 can provide personal aquatic survival skills courses that are GST free. The specified qualifications must be provided by a registered training organisation under the National Training Framework (NTF) and certify the attainment of all the competencies mentioned in Schedule 12. The NTF is defined in the Regulations as a framework for ensuring an appropriate standard of qualifications for instructors providing personal aquatic survival skills courses that are GST free. The Regulations provide a list of six first aid or life saving competencies that an instructor must obtain a certificate of attainment from a registered training organisation under the National Training Framework. The Regulations impose obligations on the parties or entities it governs, including instructors providing personal aquatic survival skills courses. Instructors must hold a certificate in the specified qualifications listed in Schedule 12 to provide personal aquatic survival skills courses that are GST free. The Regulations require that the specified qualifications be provided by a registered training organisation under the NTF and certify the attainment of all the competencies mentioned in Schedule 12. The Regulations also impose obligations on registered training organisations to ensure that the qualifications they provide meet the standards set out in Schedule 12. The Regulations do not provide for any offences, penalties, or civil/criminal consequences for breach. However, entities that provide personal aquatic survival skills courses that are not GST free may be liable for GST on the value of the supply. The maximum penalty for non-compliance with GST obligations is generally a combination of civil and criminal penalties, including fines and imprisonment. The specific penalties depend on the nature and extent of the non-compliance and are set out in the Act.