University obtains GST benefit for students

10-July-2002

In the latter part of 2001, the University of Wollongong became aware that several Victorian universities were making application to the Australian Taxation Office (ATO) for private tax rulings in regard to the GST status of their compulsory service charges to students.

They were trying to determine if they should be GST-free. After investigating the arrangements of compulsory service charges levied by Victorian universities, the University of Wollongong sought its own private tax ruling in regard to whether its compulsory service charges should be GST-free.

The ATO has now confirmed that the University's compulsory service charges should be considered GST-free. Accordingly, the University will now:

1. Cease charging GST on its compulsory service charges as soon as possible;
2. Work with the Australian Competition and Consumer Commission to process GST refunds to affected students.

UOW's Assistant Director of Finance, Mr Damien Israel, said it was hoped to start making repayments to students over the coming months.

The financial compensation will involve thousands of students. He said the money to be paid to the students would be reclaimed from the ATO, with refunds expected to range from $20 to $90 per student depending on their length of time enrolled at the University.

Student Representative Council President, Amanda Craig welcomed the ATO's decision saying that it is important for students not only at the University of Wollongong, but nationwide. She added that: "This ruling has shown that the GST should be removed from all compulsory service fees in all Australian Universities immediately. Students are struggling more and more in today's higher education sector, the GST on these fees is an unnecessary financial burden".

Wollongong University Postgraduate Association President Dave Coffman said today "The postgraduate students at the University applaud the forward thinking efforts of the finance office of the University to reduce fees through savings on GST. Cumulatively, with nearly 2,500 fee-paying postgraduate students, this will result in a net savings to students of nearly $125,000 annually. It is appreciated that the University is taking steps to ensure that education is as affordable as possible in today's environment."

A web site has been established to provide information for students. It can be accessed at http://www.uow.edu.au/student/gstrefund.html

Media note: for further information contact Mr Damien Israel on 4221 3929.