A New Tax System (Goods and Services Tax) (Language Other Than English – LOTE – courses offered by ethnic schools) Determination 2017

Administered by Department of the Treasury

Legislation au F2017L00341 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) (Language Other Than English - LOTE - courses offered by ethnic schools) Determination 2017

 

Purpose

 

Paragraph 195-1(b) of the definitions of primary course and secondary course in the A New Tax System (Goods and Services Tax) Act 1999 (the Act) provides that the Minister may determine what a primary course or a secondary course is for the purposes of the Act.

 

Once a determination has been made that a course is a primary course or a secondary course, the course will be an ‘education course’ for the purposes of the definition of education course in section 195-1 of the Act.

 

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

 

The purpose of this Determination is to determine that Language Other than English (LOTE) courses provided in accordance with this Determination are courses of study or instruction that are primary courses or secondary courses for the purposes of the Act.

 

This Determination will commence on 1 April 2017 following the cessation of the A New Tax System (Goods and Services Tax) (Language Other Than English - LOTE - courses offered by ethnic schools) Determination 2004 (the 2004 Determination) on that date. The 2004 Determination ceases operation on 1 April 2017 due to the sunsetting provisions in the Legislation Act 2003.

 

This Determination is in substantially the same terms as the 2004 Determination.

 

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

 

Commencement

 

This Determination commences on 1 April 2017.

 

Consultation

 

Treasury has been consulted in the preparation of this Determination.

 

Given the beneficial nature of the Determination, and the fact that it continues arrangements that have been in place since the 2004 Determination was made, further public consultation was considered unnecessary.

 

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 April 2017.

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 that Language Other Than English (LOTE) courses provided in accordance with this Determination are courses of study or instruction that are primary courses or secondary courses for the purposes of the Act.

 

A note to section 4 provides that under section 38-85 of the Act, the supply of an education course, which includes a primary course and a secondary course, is GST-free.

 

Section 5 of the Determination sets out the kinds of courses determined by the Minister to be primary courses for the purposes of the definition of primary course in paragraph 195-1(b) of the Act.

Subsection 5(1) provides that a LOTE course that is provided to primary school students by an ethnic school is determined to be a primary course for the purposes of the Act.

 

Subsection 5(2) then provides that a LOTE course is provided by an ethnic school if it is provided by, or on behalf of, a school that:

 

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

(ii)                has as its principal aim the teaching of languages other than English;

(iii)              has close links with a community whose first/heritage language is not English; and

(iv)             is licensed, recognised, accredited, or in any way approved to provide such courses by a State or Territory authority responsible for that approval, in the manner applicable within the relevant State or Territory.

Section 6 of the Determination sets out the kinds of courses determined by the Minister to be secondary courses for the purposes of the definition of secondary course in paragraph 195-1(b) of the Act.

Subsection 6(1) provides that a LOTE course that is provided to secondary school students by an ethnic school is determined to be a secondary course for the purposes of the Act.

 

Subsection 6(2) then provides that a LOTE course is provided by an ethnic school if it is provided by, or on behalf of, a school that:

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

(ii)                has as its principal aim the teaching of languages other than English;

(iii)              has close links with a community whose first/heritage language is not English;

(iv)             is licensed, recognised, accredited, or in any way approved to provide such courses by a State or Territory authority responsible for that approval, in the manner applicable within the relevant State or Territory.


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) (Language Other Than English - LOTE - courses offered by ethnic schools) Determination 2017

The A New Tax System (Goods and Services Tax) (Language Other Than English - LOTE - courses offered by ethnic schools) Determination 2017 (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 195-1(b) of the definitions of primary course and secondary course in the A New Tax System (Goods and Services Tax) Act 1999 (the Act).

 

Once a determination has been made that a course is a primary course or a secondary course, the course will be an ‘education course’ for the purposes of the definition of education course in section 195-1 of the Act.

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

The purpose of this Determination is to determine that Language Other than English (LOTE) courses provided in accordance with this Determination are courses of study or instruction that are primary courses or secondary courses for the purposes of the Act.

 

This Determination will commence on 1 April 2017 following the cessation of the A New Tax System (Goods and Services Tax) (Language Other Than English - LOTE - courses offered by ethnic schools) Determination 2004 on that date. The 2004 Determination ceases operation on 1 April 2017 due to the sunsetting provisions in the Legislation Act 2003.

 

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 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) (Language Other Than English – LOTE – courses offered by ethnic schools) Determination 2017 was enacted to address the gap left by the cessation of the 2004 Determination. This Determination was made under the authority of the Minister for Social Services and aims to ensure that Language Other than English (LOTE) courses provided by ethnic schools are recognised as primary or secondary courses for the purposes of the A New Tax System (Goods and Services Tax) Act 1999. This recognition is crucial as it ensures these courses are treated as education courses, thereby making the supply of these courses GST-free under section 38-85 of the Act. The policy objective is to facilitate the continuation of these culturally significant educational offerings while maintaining compliance with the tax system. The Determination also affirms its compatibility with human rights, particularly the right to education, by ensuring students' access to such courses without the burden of GST.

Scope and Application

The A New Tax System (Goods and Services Tax) (Language Other Than English - LOTE - courses offered by ethnic schools) Determination 2017 applies to Language Other Than English (LOTE) courses provided by ethnic schools that meet specific criteria. This Determination aims to ensure that these courses, offered to primary and secondary school students, are recognised as primary and secondary courses under the A New Tax System (Goods and Services Tax) Act 1999. As such, they qualify as 'education courses', which are exempt from Goods and Services Tax (GST) under section 38-85 of the Act. This Determination applies nationally across Australia, encompassing courses provided by ethnic schools that are not-for-profit entities with a principal aim of teaching languages other than English and that have close links with a community whose first or heritage language is not English. These schools must also be licensed, recognised, accredited, or approved by a State or Territory authority in accordance with local requirements. The Determination is a legislative instrument under the Legislation Act 2003 and replaces the previous 2004 Determination, which ceased operation on 1 April 2017 due to sunsetting provisions. No subordinate instruments are mentioned as extending or restricting the application of this Determination.

Key Provisions

The A New Tax System (Goods and Services Tax) (Language Other Than English - LOTE - courses offered by ethnic schools) Determination 2017 (the Determination) sets out the conditions under which Language Other Than English (LOTE) courses provided by ethnic schools are considered primary and secondary courses for the purposes of the A New Tax System (Goods and Services Tax) Act 1999 (the Act). According to section 5(1), a LOTE course provided to primary school students by an ethnic school is considered a primary course, and according to section 6(1), a LOTE course provided to secondary school students by an ethnic school is considered a secondary course. These courses must be provided by a school that operates on a not-for-profit basis, has as its principal aim the teaching of languages other than English, has close links with a community whose first or heritage language is not English, and is licensed, recognised, accredited, or in any way approved by a State or Territory authority. The Determination imposes specific obligations on ethnic schools providing LOTE courses to ensure they qualify as primary or secondary courses. Schools must operate on a not-for-profit basis, have a principal aim of teaching languages other than English, maintain close links with communities whose first or heritage language is not English, and be appropriately approved by State or Territory authorities. These conditions ensure that only courses meeting certain educational and community service criteria are considered primary or secondary courses under the Act. There are no specific offences, penalties, or civil or criminal consequences outlined for breaches of this Determination. However, if a school fails to meet the criteria for providing GST-free LOTE courses, the courses would not qualify as primary or secondary courses, and therefore, the GST-free status would not apply. This could potentially result in the school having to account for GST on the courses provided, depending on other applicable provisions of the Act. The primary consequence of non-compliance would be the loss of the GST-free status for the courses in question, leading to possible financial implications for the school.

Legal classification tags

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

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.