• Nominal consideration

    Commercial activities of charities are subject to goods and services tax (GST), but the non-commercial activities are GST-free if provided for nominal consideration.

    Nominal consideration is defined as:

    • less than 50% of the GST-inclusive market value for supplies other than accommodation
    • less than 75% for the supply of accommodation.

    This information enables organisations to make a comparison of the benchmark market values and the consideration received for a supply provided to determine whether the supplies they make are taxable, GST-free or input taxed. Specifically, organisations will be able to easily determine whether a supply is for consideration less than 50% or 75% (whichever is applicable) of the GST-inclusive market value.


    The benchmark market values are updated annually and new values take effect from 1 January each year.

    End of attention

    Find out more

    For more information on the non-commercial supply rules and nominal consideration, refer to subsection 38-250(1) of the GST Act.

    End of find out more
      Last modified: 15 Jun 2015QC 32370