• Non-profit organisations

    A non-profit organisation does not operate for the profit or gain of its members (directly or indirectly). Any profit made by a non-profit organisation goes directly back into the organisation; it is not distributed to any of its members.

    This applies while the organisation is operating, and when it winds up.

    Some GST concessions apply to most non-profit organisations; however, some only apply to charities and gift-deductible entities.


    A charity is an institution or fund established for a charitable purpose, such as poverty relief.

    To receive the GST concessions available to charities the following must apply:

    • the non-profit organisation’s sole purpose must be charitable
    • the non-profit organisation must be endorsed by us as a charity that is entitled to access GST charity tax concessions.
    Further information

    For more information about charities, refer to Charity types and concessions

    End of further information

    Gift-deductible entities

    A gift-deductible entity is an organisation that can receive tax-deductible gifts or contributions.

    Further information

    For more information about gift-deductible entities, refer to Types of DGRs  

    End of further information

    Most non-profit organisations registered for GST can access GST concessions. However, some GST concessions apply only to endorsed charities, gift-deductible entities and government schools.

    End of attention

    Non-profit sub-entities

    Some non-profit organisations can choose to have some or all of their branches or units treated as separate entities (non-profit sub-entities) for GST purposes. They include:

    • endorsed charitable institutions
    • charitable funds where the trustee is endorsed
    • gift-deductible entities which are non-profit bodies
    • government schools
    • specific other income tax-exempt non-profit organisations.

    Branches or units can only be treated as non-profit sub-entities if their activities are separately identifiable from those of the main entity by either the nature of the activities or the location of the activities.

    The branch or unit must also have an independent accounting system.

    If the branch or unit has activities that directly relate to the main purpose of the non-profit organisation, such as providing membership services for the main branch, it cannot be treated as a non-profit sub-entity.

    A non-profit sub-entity can access the same GST concessions as their parent entity (other than the ability to form further non-profit sub-entities).

    Further information

    For more information about non-profit sub-entities, refer to:

    End of further information
      Last modified: 07 Jun 2013QC 21235