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Re: GST on Subcontracted Music Lessons.

Newbie

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Hello ATO Community,

 

I hope you're all having a great day. I would greatly appreciate if anyone could please help me with this tax question.

 

According to GSTR 2000/30 (https://www.ato.gov.au/law/view/document?docid=GST/GSTR200030/NAT/ATO/00001), music lessons that are not part of a curriculum are subject to GST. So;

 

Primary School contracts Teacher 1 to provide private music lessons to their students.

 

Teacher 1 subcontracts some of the work to Teacher 2. Teacher 2 bills their invoices to Teacher 1.

 

In this case, would Teacher 1 have to include GST on their invoice, despite not sending the bill directly to the student/parent?

 

Thank you Smiley Happy

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Most helpful response

ATO Community Support

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Hi @PeaceLilly,

 

It would depend on if it's an education course or not. Education courses are GST-free.


According to the GST legislation, a primary course means a course of study or instruction that is delivered:

  • (i) in accordance with a primary curriculum recognised by the education authority of the State or Territory in which the course is delivered; and
  • (ii) by a *school that is recognised as a primary school under the law of the State or Territory

 

So from the sounds of it, a private music lesson is likely not going to fall under an education course, and therefore if Teacher 1 or Teacher 2 are registered for GST, they would need to include GST on the invoice.

 

You can read more about when GST applies in A New Tax System (Goods and Services Tax) Act 1999 on our legal database.

1 REPLY 1

Most helpful response

ATO Community Support

Replies 0

Hi @PeaceLilly,

 

It would depend on if it's an education course or not. Education courses are GST-free.


According to the GST legislation, a primary course means a course of study or instruction that is delivered:

  • (i) in accordance with a primary curriculum recognised by the education authority of the State or Territory in which the course is delivered; and
  • (ii) by a *school that is recognised as a primary school under the law of the State or Territory

 

So from the sounds of it, a private music lesson is likely not going to fall under an education course, and therefore if Teacher 1 or Teacher 2 are registered for GST, they would need to include GST on the invoice.

 

You can read more about when GST applies in A New Tax System (Goods and Services Tax) Act 1999 on our legal database.