GST-FREE SWIMMING LESSONS

Nancy Shaw

ASCTA/Swim Australia Conference 2018

DO YOU CHARGE GST FOR YOUR SWIMMING LESSONS?

Have you read the GST

free fact Sheet relating to

GST and Personal Aquatic

Survival Skills?

A BIT OF HISTORY…

In 1998 when Gst free was first being

discussed in Parliament regarding the Aquatics

industry, limited terms were used to define

swimming lessons.

There was no definition separating Learn to

Swim and ‘Swimming Lessons’ (Squad Training)

Terms mostly used were related to RLSS

terminology (not generic)

BY WAY OF BACKGROUND-TECHNICAL INFORMATION ON THE GST-FREE STATUS

To be GST-free as a *first aid or lifesaving course, a course must satisfy two requirements:

1) First requirement

A first aid or lifesaving course is a course of study or instruction that principallytrains individuals in one or more of the following:

(i) First aid, resuscitation or other similar lifesaving skills including personal aquatic survival skills but not includingswimming lessons

2) SECOND REQUIREMENT

To be GST-free as an education course a first aid or lifesaving course must be provided by an entity that is:

(i) registered (or otherwise approved) by a State or Territory authority that has responsibility for registering (or otherwise approving) entities that provide such courses or

(ii) that is approved to provide such courses by a State or Territory body that has responsibility for approving the provision of such course or

(iii) that uses, as the instructor for the course, a person who holds a training qualification for that course that was issued by Austswim Limited (ACN 097 784 122) or

(iv) that uses, as the instructor for the course, a person who holds a training qualification for that course that was issued by Surf Life Saving Australia Limited (ACN 003 147 180) or

(v) who holds a training qualification for that course that was issued by the Royal Life Saving Society-Australia (ACN 008 597 616, or

(VI) THAT USES AS AN INSTRUCTOR FOR THE COURSE, A PERSON WHO HOLDS A TRAINING QUALIFICATION FOR THAT COURSE THAT IS A QUALIFICATION (IN LIFE SAVING) SPECIFIED IN, OR OF A KIND SPECIFIED IN THE REGULATIONS.

ASCTA/Swim Australia is working with the ATO, to have the SAT Course included in the revised fact sheet. We satisfy (i), (ii) and

(vi)

it is a long an arduous process to change the original legislation – has to be accepted by Parliament. (could take years to go through)

WHAT IS A FIRST AID OR LIFE SAVING COURSE?

Is a Course of study or instruction that mainly involves training people in first aid, resuscitation or other similar lifesaving skills

including ‘personal aquatic survival skills’,

but not including ‘swimming lessons’.

WHAT IS A SWIMMING LESSON?

The definition of ‘First Aid or lifesaving Course’ in the Gst Act

specifically excludes courses that principally involve swimming

lessons.

Such courses are not Gst free under these provisions.

A ‘swimming lesson’ in this context is something that mainly

provides swimming instruction to a proficient swimmer so that the

student can improve their swimming skills – eg. To improve endurance, speed and technique.

In the swim school industry… commonly called ‘Squad Training’

WHAT ARE

PERSONAL

AQUATIC

SURVIVAL

SKILLS?

1. Sculling

2. Treading water

3. Floating

4. Safe entry and exit from the

water

5. Techniques for clothed

swimming survival

6. Use of devices to assist rescue,

7. And Basic swimming skills.

WHAT ARE

BASIC

SWIMMING

SKILLS?

Are those skills people need to prevent them

from drowning and/or be able to move away

from a dangerous situation in the water.

Survival strokes (sidestroke, survival backstroke,

survival freestyle)

The majority of the instruction relates to

acquiring personal aquatic survival skills

That is, if a lesson or a course only provides:

floating,

safe entry and exit from the water

and basic swimming skills

the course will not be a GST-free course - because it does not include all the seven (7) personal aquatic survival skills.

It is considered that ALL of these skillsmake up personal aquatic survival skills requirements.

WHAT IS A COURSE?If a student is enrolled in and undertaking the course,

it does not matter whether they complete the whole term,

individual lesson or

series of lessons

nor is it important why they are enrolled in the course.

If the course content is that of a first aid or lifesaving course and all of the requirements are satisfied,

the course will be GST Free.

The ATO requires that children should not progress from one level to the next

without complying with age appropriate developments of ‘personal aquatic survival skills’ (as listed above) (all 7 of them).

LEARN TO SWIM

You need to consider the content and purpose of your course

eg the name of your course in advertising.

You may advertise your course as a ‘Learn to Swim’ program,

but it must satisfy the components of personal aquatic survival skills being taught.

If you run SSW once a term, this is considered part of your overall course.

Children must either have a SSW Certificate or the personal aquatic survival skills being taught during SSW MUST form part of the certification criteria, for moving from one level up to the next

SWIM SAFER WEEK:

DO YOU GET PARENT COMMENTS LIKE THIS… RE SWIM SAFER WEEK:

“We did that last term”

“Why can’t they do ‘proper swimming lessons’”

“We’ve been coming here for years – they’ve done this all before”

….. They just don’t get it!!!

We need to educate our parents as well as their children!

‘Did you know that your swimming lessons here at Holsworthy Aquatic Centre are GST FREE!

Yes, that’s right. You pay NO GST on your Swimming lessons.

The way we are able to offer this to you and your family, is because we comply with the Australian Taxation Commission guidelines for gst free services.

To comply with these regulations, we have to include ‘personal aquatic survival skills’ in our learn to swim course, and your children have to be participating in these activities. ‘

NOTE TO PARENTS…

RLSS RESEARCH AND POLICY SUMMARY:

BENCHMARKING AUSTRALIAN CHILDREN’S SWIMMING AND

WATER SAFETY SKILLS:

SWIM SCHOOL DATA CHILDREN AGED 5 -15 YEARS

SKILLS BEING TAUGHT…

87% FREESTYLE

84% BACKSTROKE

53% TREADING WATER AND SCULLING

46% SURVIVAL BACKSTROKE

9% RESCUE TECHNIQUES

THE REPORT FURTHER STATES:

WATER SAFETY SKILLS AND KNOWLEDGE

PREVIOUS RESEARCH HAS CONSISTENTLY

REPORTED A LACK OF WATER SAFETY

KNOWLEDGE AND AWARENESS AMONG

PRIMARY SCHOOL CHILDREN, INCLUDING

RESUSCITATION KNOWLEDGE.

RESEARCH SUGGESTS THAT UP TO 82% OF SWIM

SCHOOLS MAY NOT BE INCLUDING ESSENTIAL

WATER SAFETY AND SURVIVAL SKILLS.

SAT COURSE:

WATER SAFETY SURVIVAL AND RESCUE

TAKE UP 2 HOURS OF THE 8 HOUR

INSTRUCTOR TRAINING COURSE (25%)

DOES YOUR PROGRAM INCLUDE 25% OF

TEACHING TIME ON THESE SKILLS?

GST-FREE SWIMMING

LESSONS

ATO / Business / GST / In Detail / Your Industry /

Gst and Personal Aquatic Survival Skills

FITNESS INDUSTRY MODERN AWARD

MA000094

ASCTA/Swim Australia involved in submissions

Review of Classification levels

AWU now also involved

www.fairwork.gov.au/small-business-showcase

Recent publicity regarding issues with Paul Sadler’s Swimland

Importance of doing due diligence regarding rates of pay for age levels

Rates of pay for hours worked / qualifications, to move up a Level

From September 2017:

Increased penalties for employers that breach their record-keeping and pay slip obligations such as failing to keep accurate records or providing false or misleading information to their employees

Stronger powers for the Fair Work Ombudsman (FWO) to investigate breaches of the Fair Work Act

BE AWARE!

Discussion ….

Do you comply?

How do you design your Certificates?

Are you teaching enough Personal Aquatic Survival Skills?

What about Babies and Toddlers?

WHAT ARE

PERSONAL

AQUATIC

SURVIVAL

SKILLS?

1. Sculling

2. Treading water

3. Floating

4. Safe entry and exit from the

water

5. Techniques for clothed

swimming survival

6. Use of devices to assist rescue,

7. And Basic swimming skills.