GSTR 2000/11 Goods and services tax: grants of financial assistance.
Gifts
Non-profit organisations are not required to pay GST on gifts they receive and the value of gifts is not included when they determine their GST turnover.
For a payment (monetary or non-monetary) to be considered a gift, it must be made voluntarily, and the giver cannot receive a material benefit in return.
A material benefit is something of value, such as a ticket to a dinner or a functional item such as a pen or book.
For more information about how GST applies to gifts, refer to:
Sponsorship payments are not gifts. This is because your organisation would normally provide a sponsorship benefit, usually advertising, for the payment.
Under a sponsorship arrangement, you may receive monetary support for a fundraising activity, and in return you provide advertising, signage, naming rights or other benefits to your sponsor.
If you are registered for GST, you must pay GST on any sponsorship you receive.
For more information about how GST applies to sponsorship, refer to:
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