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.
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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.
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