How will the GST apply to education?

Tuition is GST-free

Accommodation is either GST-free or input taxed 

Some activities are subject to GST	Most education services will be GST-free.  The new tax system will see the costs for the education sector fall by $240 million.
The proposed treatment of education recognises that education is provided at public schools free of charge or for small voluntary contributions.  Applying a goods and services tax (GST) to education would discriminate against private providers.
The precise range of recognised institutions and courses that qualify as GST‑free will be subject to consultation following the election.
Will the GST apply to tuition fees?
No.  School fees for tuition provided by a pre-school, primary or secondary school will be GST-free whether provided by a private or public school.
Tuition provided by a college, TAFE, university or other recognised tertiary institution that leads to a degree, diploma, certificate or other similar qualification will also be GST-free.
Goods supplied to students free of charge will also be GST-free.
Will the GST apply to accommodation?
The provision of accommodation at boarding schools will be GST‑free.
Accommodation at University Colleges will be input taxed in line with the treatment of other long-term accommodation.  This means that GST will not apply to University College fees, but these Colleges will not be able to claim input tax credits.
What education related items are subject to GST?
Some education related activity will be subject to the GST, such as recreational and short occupational courses, holiday camps, sporting and craft programs. 
Most registered businesses will be able to claim input tax credits for GST paid as part of the cost of occupational courses.
Goods sold or leased to students will be subject to GST to prevent schools unfairly competing with other business by selling items like uniforms, sporting equipment, books and computers.	
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How will the GST apply to education?

	Other activities, separate to tuition fees, that are not GST-free include:
•	the food component of boarding fees, and food and beverages sold to students, eg in tuck-shops;
•	school bus services and excursions;
•	fees charged for equipment hire (eg musical instruments); and
•	sales of goods and services for fundraising purposes (eg the school fete).
However, if the fundraising is done by an organisation below the threshold for registration ($100,000 for non-profit bodies) the GST will not apply to the sales.  For example, if a Parents and Friends organisation is below the threshold, then they could run a fete and make a donation to the school.  GST would not apply.	

For further information	

‘A New Tax System’  Chapters 2.
Other fact sheets:  No. 200  ‘The GST at a glance’ and No. 206  ‘GST Glossary:  What do the new terms mean?’.
The Government’s Tax Reform Website:  http://www.taxreform.gov.au
Tax Reform Information Centre:  Telephone 13 30 99