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Tax

All registered training organisations (RTOs) need to register their business for taxation purposes, and in some instances, obtain business licenses and permits in their home state or territory.

Every business needs to:

  • have an Australian business number (ABN)
  • have an account for income tax 
  • withhold 48.5% from payments to other businesses that don’t quote their ABN
  • have an account for business expenses it claims as deductions
  • keep business records and report and pay tax.

The Australian Tax Office sets out information to help businesses comply to their tax requirements along with running Tax Basics seminars that answer questions like:

  • Australian business number – why do I need one?
  • How does a business pay tax?
  • Business structures – sole trader, partnership, company or trust?
  • What business deductions can I claim?
  • GST - how does it affect my business?
  • How do I complete my activity statements?
  • Pay as you go – what is it?
  • Simplified tax system for small business – what’s in it for my business?
  • How do I keep proper business records?

GST exemption

Goods and services tax (GST) is a broad-based tax of 10 per cent on the sale of most goods and services and other things in Australia. However, as the provider of training products and services, RTOs are GST exempt under section 38-85 GSTR 2003/1 Goods and Services Tax.

The ruling explains the supply of a course meeting the GST Act definition of a ‘professional or trade course’ is a GST-free education course. It also discusses the requirements of that definition and sets out relevant questions to help an RTO determine whether a course can be considered a GST-free education course.

The ruling also includes examples to illustrate how to practically apply it.

Find out what taxes, licences or permits you need

There are many different licences, permits, registrations and certificates required by the Australian, state, territory and local governments. State and territory business taxes include:

  • stamp duty
  • pay-roll tax
  • land tax.

Each state and territory has its own law for these taxes administered by its revenue office. To find out what tax laws apply to your business, go to the Australian Government’s Business Entry Point website. 

All RTOs should check with their accountants or the ATO as to their specific tax requirements.

the following information is required for metadata purposes, please ignore. [title]Tax[/title] [summary]

All registered training organisations (RTOs) need to register their business for taxation purposes, and in some instances, obtain business licenses and permits in their home state or territory.

Every business needs to:

  • have an Australian business number (ABN)
  • have an account for income tax 
  • withhold 48.5% from payments to other businesses that don’t quote their ABN
  • have an account for business expenses it claims as deductions
  • keep business records and report and pay tax.

The Australian Tax Office sets out information to help businesses comply to their tax requirements along with running Tax Basics seminars that answer questions like:

  • Australian business number – why do I need one?
  • How does a business pay tax?
  • Business structures – sole trader, partnership, company or trust?
  • What business deductions can I claim?
  • GST - how does it affect my business?
  • How do I complete my activity statements?
  • Pay as you go – what is it?
  • Simplified tax system for small business – what’s in it for my business?
  • How do I keep proper business records?

GST exemption

Goods and services tax (GST) is a broad-based tax of 10 per cent on the sale of most goods and services and other things in Australia. However, as the provider of training products and services, RTOs are GST exempt under section 38-85 GSTR 2003/1 Goods and Services Tax.

The ruling explains the supply of a course meeting the GST Act definition of a ‘professional or trade course’ is a GST-free education course. It also discusses the requirements of that definition and sets out relevant questions to help an RTO determine whether a course can be considered a GST-free education course.

The ruling also includes examples to illustrate how to practically apply it.

Find out what taxes, licences or permits you need

There are many different licences, permits, registrations and certificates required by the Australian, state, territory and local governments. State and territory business taxes include:

  • stamp duty
  • pay-roll tax
  • land tax.

Each state and territory has its own law for these taxes administered by its revenue office. To find out what tax laws apply to your business, go to the Australian Government’s Business Entry Point website. 

All RTOs should check with their accountants or the ATO as to their specific tax requirements.

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In this site

  • Maintaining RTO status >>
    An RTO can apply to change its scope of registration at any time in order to provide additional Training Package qualifications as well as replacing an accredited course with a Training Package qualification.
  • Australian Quality Training Framework >>
    The Australian Quality Training Framework is the nationally agreed arrangements that ensure the high quality of vocational education and training services in Australia.
 

In the VET sector