BillieBob,
You asked the question:
Here's another question - JAR-FCL 1.330 lists the privileges of a JAA Flight Instructor. Can you point out where the privilege to teach aerobatics is included?
and then answered it:
This will be the CAP 804 that takes effect from 17 September 2012, will it?
To be exact, it's in Part 1, Section 4, Part J, Subpart 1,
The privileges of an FI are to conduct flight instruction for the issue, revalidation or renewal of:
(f) a towing or aerobatic rating, provided that such privileges are held and the FI has demonstrated the ability to instruct for that rating to an FI qualified in accordance with (i) below;
By my understanding, you will in future need an Aerobatics Rating on your EASA licence if you wish to turn yourself upside down. It also seems quite clear to me that, under EASA, only FIs with privilages to conduct aerobatics training will be legally entitled to provide training for the award of an Aerobatics Rating. So, you can provide as much aerobatics training as you like, but your clients won't be able to use any of it towards the award of their Aerobatics Rating if you're not an FI with the "no aerobatics" restriction removed.