G.S.T for ME CIR
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G.S.T for ME CIR
Does anyone know if GST is applicable to students doing a multi engine instrument rating following a CPL. So far all I have received from the taxation department, CASA and my flying school is a series of "um's and ah's".
Please Help!!!
Please Help!!!
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The word training for a 'vocation' is used a lot.
Possible rule of thumb;
1. If you have completed a CPL, never worked as a pilot and the IFR (and/or instructor rating) followed the CPL pretty close then there should not be any GST.
2. If you have completed a CPL, worked or have sort out work as a pilot then GST will apply as it is then deemed to be self education.
The full cost of the course as well as the GST can then be a tax deduction from your earnings. Whereas the option 1. guy has no GST but can not claim the expense off tax.
Other issues;
1. the school may have to have the course registered with one or more education authories such as education queensland, ACPET or DETYA.
2. The school concerned may get you to sign a 'statement of intent' if you want the GST free course. This takes the responsibility away from the school for GST collection in the event it is deemed (in the future) that you were not studying as/for a vocation.
3. If you do try and claim a GST free course on tax then the tax dept. may ask you in for a chat.
As Torres said, no one really knows for sure as your case may be 1 or 2. Invest a couple of $ in an accountant or if you are prepared to wait a while - email the tax dept. for nix.
Good Luck
Possible rule of thumb;
1. If you have completed a CPL, never worked as a pilot and the IFR (and/or instructor rating) followed the CPL pretty close then there should not be any GST.
2. If you have completed a CPL, worked or have sort out work as a pilot then GST will apply as it is then deemed to be self education.
The full cost of the course as well as the GST can then be a tax deduction from your earnings. Whereas the option 1. guy has no GST but can not claim the expense off tax.
Other issues;
1. the school may have to have the course registered with one or more education authories such as education queensland, ACPET or DETYA.
2. The school concerned may get you to sign a 'statement of intent' if you want the GST free course. This takes the responsibility away from the school for GST collection in the event it is deemed (in the future) that you were not studying as/for a vocation.
3. If you do try and claim a GST free course on tax then the tax dept. may ask you in for a chat.
As Torres said, no one really knows for sure as your case may be 1 or 2. Invest a couple of $ in an accountant or if you are prepared to wait a while - email the tax dept. for nix.
Good Luck
Rich-Fine-Green
Sir, I congratulate you.............
Ahh Beer.......so much more than just a breakfast drink.
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Sir, I congratulate you.............
Ahh Beer.......so much more than just a breakfast drink.
That must be one of the finer quality "signatures" on PPRuNe! So true. So dear to my own heart.......
Even better than some of Gaunty's quality signature slogans!
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When i was arguing trying to do the same thing (and mind you i had to pay GST in the end as my school wasnt willing to take the chance) we came across the section that says that if you start something in your CPL sylabus but dont complete it by your test, then you may continue after issue of a cpl gst free. I hope that made sense as im going off memory!
What you may be able to argue is (as long as your school agrees) that you actually start your IFR training before you get your GFPT in your instument flying lessons after area solo! 2 hours pre GFPT and 10 hours pre CPL. It depends how chummy you are with your school accountant aswell. But it is definately possible in an interpretive sense. Good luck! And let your school know that if they ever get into trouble later on that you are willing to pay the GST to them. Hopefully that should soothe their minds!
CA
What you may be able to argue is (as long as your school agrees) that you actually start your IFR training before you get your GFPT in your instument flying lessons after area solo! 2 hours pre GFPT and 10 hours pre CPL. It depends how chummy you are with your school accountant aswell. But it is definately possible in an interpretive sense. Good luck! And let your school know that if they ever get into trouble later on that you are willing to pay the GST to them. Hopefully that should soothe their minds!
CA
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As far as the taxations aviation field specialist (who's never flown a plane mind you) explained to me
*If you do the 150 CPL Course it is GST Free
*If you do an IFR it is charged with GST
*If you do the 200 hour CPL course it has GST
*If you are doing just a PPL it has GST
At the end he agreed that if the IFR is done as part of the 150 hour CPL course well then it should be GST Free.
He also said the ruling is basically about this;
that they have been given advice that the basic CPL is all that is necessary to become gainfully employed..if an operator insists that you complete a IFR then it is then a tax deduction anyway come end of financial as you are employed.
The instuctor ratings are GST Free because they class this as a different career than charter/airline careers and like the 150 hour CPL course is "self education" for the neccessary qualifications to become employed...
confused yet??? I was!!
Then I was told that if you did the MECIR with an accredited training organisation (VETAB approved) that it can be GST Free..but then the costs involved with uni courses and accredited courses seem higher than paying the GST at other non accredited and equally capable schools.
I was not convinced of the moral issue of GST on education and self funded courses so I invested many dollars with my accountant to clarify the understanding with the Commissioner of Taxation...3 months later I was given exactly the same determination...
If you find out different please post it here as I am interested if anything has changed.
Wish you well
*If you do the 150 CPL Course it is GST Free
*If you do an IFR it is charged with GST
*If you do the 200 hour CPL course it has GST
*If you are doing just a PPL it has GST
At the end he agreed that if the IFR is done as part of the 150 hour CPL course well then it should be GST Free.
He also said the ruling is basically about this;
that they have been given advice that the basic CPL is all that is necessary to become gainfully employed..if an operator insists that you complete a IFR then it is then a tax deduction anyway come end of financial as you are employed.
The instuctor ratings are GST Free because they class this as a different career than charter/airline careers and like the 150 hour CPL course is "self education" for the neccessary qualifications to become employed...
confused yet??? I was!!
Then I was told that if you did the MECIR with an accredited training organisation (VETAB approved) that it can be GST Free..but then the costs involved with uni courses and accredited courses seem higher than paying the GST at other non accredited and equally capable schools.
I was not convinced of the moral issue of GST on education and self funded courses so I invested many dollars with my accountant to clarify the understanding with the Commissioner of Taxation...3 months later I was given exactly the same determination...
If you find out different please post it here as I am interested if anything has changed.
Wish you well
Moderator
The rule of thumb is that the only thing that is GST free is training that is not undertaken by PPLs. As a PPL can hold an MECIR, it is not GST free unless done as part of the integrated course.
For students doing a "200 hour" CPL, the training that is required to upgrade them to CPL flight test standard is not done by PPLs, so is also GST free.
For students doing a "200 hour" CPL, the training that is required to upgrade them to CPL flight test standard is not done by PPLs, so is also GST free.
I'm not surprised at the confusion. The last "Advisory Notes" from the ATO consisted of 630 pages.........
It would appear to me that if you were employed as a pilot (or derived a major part of your income from flying activities) all training relevent to your employment (including any GST component) would be tax deductible in the year it was incurred.
It would appear to me that if you were employed as a pilot (or derived a major part of your income from flying activities) all training relevent to your employment (including any GST component) would be tax deductible in the year it was incurred.
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Rescued from an old hard drive when GST first reared it's ugly head in Aviation.
The statement below is general and not aviation specific.
May just add more confusion. However, you can say that in the G.A. award there provisions for IFR and Instructor qualifications, therefore it can be GST free. However, as stated below, if a particular company or employer requires a qualification then it is not GST free.
ACPET GST Statement
ACPET GST Start-Up Office
Professional or Trade courses
Courses undertaken to gain qualifications are GST-free if the qualifications are an essential prerequisite to employment in a trade, profession or occupation. These courses do not need to be accredited by a State or Territory accreditation authority.
To be an essential prerequisite of a profession or trade:
The qualification must be imposed by or under an Australian law or an award, order, determination or industrial agreement in force under an Australian law, or by a professional or trade association that has uniform national requirements for entry into that profession or trade.
If there is neither an industrial instrument nor an association with uniform national requirements, then requirements that are imposed by a professional or trade association which are not uniform nationally, for example, a professional association whose requirements differ from State to State, are essential pre-requisites.
A qualification need not be from a recognised education provider, for example, the exemption could extend to:
• courses offered by associations regulating who can practice in a particular profession, or
• a course to obtain a certificate required to operate a particular type of equipment.
A qualification is not GST-free merely because a particular employer or group of employers requires it. For example, a motor vehicle driver’s licence is a requirement of a number of jobs. The cost of driving lessons is not GST-free.
Type of Courses Not Covered
Examples of courses that are not covered by the definition of education course are:
• hobby, personal development or recreational courses
• continuing professional development courses to maintain membership of a professional body
• short occupational courses to maintain skills, and
• a course for a qualification which may be required by a particular employer or group of employers, for example, a motor car drivers licence.
Recognition of Prior Learning
Assessment of prior learning or the issue of qualifications are also GST-free.
These may be made for the purpose of access to education or employment, professional associations or occupational registration or licensing requirements.
The assessment or issue of qualifications must be made by an entity registered with a training recognition authority, by a professional or trade association, an education institution, government authority, for example, the National Office of Overseas Skills Recognition, or a local government body.
Brother Torres;
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Beer has been an active partner in my life's journey.
An Ode to the amber is the least I can do. I can now say to my wife - "here is someone who truely understands".
The statement below is general and not aviation specific.
May just add more confusion. However, you can say that in the G.A. award there provisions for IFR and Instructor qualifications, therefore it can be GST free. However, as stated below, if a particular company or employer requires a qualification then it is not GST free.
ACPET GST Statement
ACPET GST Start-Up Office
Professional or Trade courses
Courses undertaken to gain qualifications are GST-free if the qualifications are an essential prerequisite to employment in a trade, profession or occupation. These courses do not need to be accredited by a State or Territory accreditation authority.
To be an essential prerequisite of a profession or trade:
The qualification must be imposed by or under an Australian law or an award, order, determination or industrial agreement in force under an Australian law, or by a professional or trade association that has uniform national requirements for entry into that profession or trade.
If there is neither an industrial instrument nor an association with uniform national requirements, then requirements that are imposed by a professional or trade association which are not uniform nationally, for example, a professional association whose requirements differ from State to State, are essential pre-requisites.
A qualification need not be from a recognised education provider, for example, the exemption could extend to:
• courses offered by associations regulating who can practice in a particular profession, or
• a course to obtain a certificate required to operate a particular type of equipment.
A qualification is not GST-free merely because a particular employer or group of employers requires it. For example, a motor vehicle driver’s licence is a requirement of a number of jobs. The cost of driving lessons is not GST-free.
Type of Courses Not Covered
Examples of courses that are not covered by the definition of education course are:
• hobby, personal development or recreational courses
• continuing professional development courses to maintain membership of a professional body
• short occupational courses to maintain skills, and
• a course for a qualification which may be required by a particular employer or group of employers, for example, a motor car drivers licence.
Recognition of Prior Learning
Assessment of prior learning or the issue of qualifications are also GST-free.
These may be made for the purpose of access to education or employment, professional associations or occupational registration or licensing requirements.
The assessment or issue of qualifications must be made by an entity registered with a training recognition authority, by a professional or trade association, an education institution, government authority, for example, the National Office of Overseas Skills Recognition, or a local government body.
Brother Torres;
A gift from the gods that is truely underappreciated.
Beer has been an active partner in my life's journey.
An Ode to the amber is the least I can do. I can now say to my wife - "here is someone who truely understands".
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gst for mecir
Recently survived a gst audit by the ato.
Certificates II, III & IV in aviation are GST exempt.
Instructor Rating GST exempt.
MECIR undertaken by PPL holder NOT exempt
MECIR undertaken by Certificate IV (CPL via 150 hr integrated course) GST exempt.
Certificates II, III & IV in aviation are GST exempt.
Instructor Rating GST exempt.
MECIR undertaken by PPL holder NOT exempt
MECIR undertaken by Certificate IV (CPL via 150 hr integrated course) GST exempt.
Hope this helps.
Sootyg can I suggest you go straight to the horses mouth. The ATO made a determination on this a couple of years ago and so it is all there in black and white.
GSTD 2000/11
http://law.ato.gov.au/atolaw/view.ht.../NAT/ATO/00001
GSTD 2000/11
http://law.ato.gov.au/atolaw/view.ht.../NAT/ATO/00001
