GST registration for not-for-profits
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Calculating GST turnover
Your GST turnover meets the registration turnover threshold if your current GST turnover or your projected GST turnover threshold is at or above the turnover threshold.
Your current GST turnover is the value of all the supplies (sales) you make during the current month and the previous 11 months. Your projected GST turnover is the value of all of your sales you make during the current month and the next 11 months.
Both the current and projected GST turnover is based on your gross income, excluding all of the following:
- sales that are input taxed sales
- sales not connected with an enterprise that you carry on
- sales that are not made for consideration (unless the sales made to associates).
A gift made to you is not considered payment for a sale and is not subject to GST. The value of a gift is also excluded when calculating your GST turnover.
If you are not registered for GST, you will need to calculate your current GST turnover and your projected GST turnover each month to identify if you are required to be registered for GST purposes, ie when either of these turnovers are $150,000 or more.
Generally, you must register for GST within 21 days if either GST turnover meets or exceeds the GST turnover threshold of $150,000.
How to register
You can register for GST or other taxes when you apply for an ABN.
If your organisation already has an ABN, you can register for GST:
- online through our Online services for business
- by phone
- on the form Add a new business account.
Consequences of registering for GST
Generally, if you are registered (or required to be registered) for GST, your sales are taxable sales and you include GST in the price of the sales of your goods and services.
There are other types of sales where you do not include GST in the price of your sale. These are called GST-free sales or input taxed sales.
Being registered for GST means that your organisation:
- must pay the GST included in its sales to us
- can claim GST credits for any GST included in the price of purchases you make in carrying on your activities.
- must complete an activity statement to report its taxable sales and claim GST credits.
Consequences of not registering for GST
If you are not registered and are not required to be registered for GST:
- GST is not included in the price of your sales
- you cannot claim GST credits for the GST included in the price of purchases you make in carrying on your activities.
Cancelling your GST registration
You may cancel your not-for-profit organisation's GST registration if your organisation meets all of the following requirements:
- has been registered for at least 12 months
- has a GST turnover of below $150,000
- has applied for cancellation of the registration.
Under certain circumstances, your organisation's GST registration may be cancelled if the registration has been in place for less than 12 months.
You may need to repay some or all the GST credits you have previously claimed when you cancel your GST registration.
Not-for-profit organisations must register for GST if their turnover is $150,000 or more. They must include 10% GST on most or all of its sales and can claim a GST credit for goods and services.