Goods and services tax (GST) is a broad-based tax of 10% on most goods, services and other items sold or consumed in Australia.
Genuine donations or gifts are not subject to GST if they are given voluntarily and the donor does not receive anything of material value in return. If a donor does receive something material in return, such as a ticket to a dinner, the payment is not a gift. It is treated as a normal sale and will be subject to GST if the supplier is registered or required to be registered for GST.
Working out your GST turnover
Genuine donations and gifts are excluded from your NFP’s GST turnover calculation.
You should monitor your GST turnover and review this regularly. If your GST turnover reaches the current threshold of $150,000 or more, you are required to register for GST and lodge your Business Activity Statement (BAS).
Additional information and guidance
Learn more about:
- how to calculate your GST turnover and consequences of registering or not registering for GST at GST registration for not-for-profits
- other tax implications for donations in cryptocurrency at Gifts and donations of crypto assets
- what you need to know about GST and Donations and fundraising to help disaster victims.
Also in this edition, find out about claiming GST credits where an item is used both for an NFP and for private purposes in Using something privately? Check your GST credit claims.
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