GST concessions for charities, gift deductible entities and government schools - Tax basics for non-profit organisations
Non-commercial activities
The commercial activities of a charitable institution, charitable fund, gift deductible entity (see note 2) or government school are taxable but the non-commercial activities of these organisations can be GST-free.
This means that, if it is registered for GST, the charitable institution, charitable fund, gift deductible entity or government school does not pay GST on the payment it receives for its non-commercial sales, and, it can claim GST credits for the GST included in the price of things acquired to make these sales.
The term ‘non-commercial activities’ refers to sales made when the payment received for the sale is less than a specified amount. The sale is GST-free if the amount charged is:
less than 50% of the GST-inclusive market value, or
less than 75% of the amount the charitable institution, charitable fund, gift deductible entity or government school paid to acquire the things that are subsequently sold.
When the sale is a supply of accommodation by a charitable institution, charitable fund, gift deductible entity or government school, the sale is GST-free if the amount charged is:
less than 75% of the GST-inclusive market value of the accommodation, or
less than 75% of the cost of providing the accommodation.
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