Hi Megan
TAFE are exempt as the sites are owned by the Crown & TAFE is a State Govt organisation & are not under lease for private purposes, not with standing that they charge a fee for their service.
You will generally find that Universities are set up under Commonwealth legislation & as such are exempt. Andrew Butcher from Campbelltown might be able to provide you with more insight into this.
Yes it would probably come under 556 but I would be asking them to tell ,e what Sec they are claiming under.
JT