• Employees, officers, agents and volunteers – reimbursements

    Your organisation can claim a GST credit when it reimburses employees, officers, volunteers and agents for their out-of-pocket expenses when certain requirements are satisfied.

    Employees and officers

    If you are registered for GST, you can claim a GST credit on an employee or officer reimbursement if the following applies:

    • your employee’s or officer's expense either
      • was directly related to their activities as your employee or officer
      • is an expense payment fringe benefit
       
    • GST was included in the price the employee or officer paid
    • you hold appropriate documents - for example, a valid tax invoice
    • your employee or officer is not entitled to claim a GST credit for the expense
    • the expense is not listed as non-deductible
    • the expense is for a creditable purpose.

    Volunteers

    We sometimes receive questions from organisations on whether they can claim GST credits on reimbursements to volunteers when purchases are made by the volunteer in carrying out the organisation’s activities.

    Non-profit organisations, for example sporting clubs, generally can not claim GST credits when they reimburse a volunteer. However, you can claim a GST credit for volunteer reimbursements if the following applies:

    • you are either
      • an endorsed charitable institution
      • an endorsed trustee of a charitable fund
      • a gift-deductible entity
      • a government school
      • a non-profit sub-entity of one of the above
       
    • the volunteer’s expense was directly related to your activities
    • GST was included in the price the volunteer paid
    • you hold appropriate documents - for example, a valid tax invoice
    • the volunteer is not entitled to claim a GST credit for the expense
    • the expense is not listed as non-deductible
    • the expense is for a creditable purpose.

    Agents

    If you are registered for GST, you can claim a GST credit on an agent reimbursement if the following applies:

    • the agent, on their own behalf, incurred an expense that was directly related to their activities as your agent – for example, the agent incurred petrol expenses
    • GST was included in the price the agent paid
    • you hold appropriate documentation – for example, a valid tax invoice
    • your agent is not entitled to claim a GST credit for the expense
    • the expense is not listed as non-deductible
    • the expense is for a creditable purpose.

    Documentation you need

    If the purchase is:

    • over $82.50 (GST-inclusive), your organisation must hold the tax invoice issued to your employee, officer, agent or volunteer for the purchase they made, and GST must be included in the price paid
    • $82.50 or less (GST-inclusive), your organisation does not need to hold a tax invoice, but must have some other documentary evidence of the purchase, (for example, a cash receipt issued to your employee, officer, agent or volunteer for the purchase they made) and GST must be included in the price paid.
    Further information

    For more information about reimbursing employees and volunteers, refer to:

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