We are a small not for profit charity (turnover under $150,000). Is it worthwhile for us to register?
Where an entity is not required to be registered for GST, the decision to elect to register is one that will be based on the administrative and business needs of the organisation.
If an entity is registered for GST, a credit can be claimed for the GST included in the price of purchases that are made by the organisation (this is called an input tax credit).
While the record keeping for GST and completion of the business activity statement (BAS) have been greatly simplified, it still is a business decision whether on balance it is better to forgo input tax credits that may be available, against the obligations that registration places on small entities such as:
- paying GST on memberships
- paying GST on other supplies (unless they are GST-free or input taxed), and
- completing the BAS and keeping accurate records.