Goods and services tax (GST) is a broad-based tax of 10% on most goods, services and other items sold or consumed in Australia.
NFPs carrying on an enterprise with a GST turnover of $150,000 or more need to register for GST. This rule applies regardless of your income tax status.
If you’re a NFP and your turnover is below $150,000, you can choose to register voluntarily, provided you are carrying on an enterprise.
If you’re not registered for GST, you should check your GST turnover each month. You must register for GST within 21 days if:
- your current turnover is $150,000 or more and your projected turnover is not below $150,000, or
- your projected turnover is $150,000 or more.
Once registered for GST, you need to remit and pay GST on any taxable sales you make, and report this on a business activity statement (BAS). You may be able to claim GST credits for any GST included on purchases you make related to your NFP.
When claiming GST credits, you need to hold a valid tax invoice for purchases related to your NFP. If you did not get a tax invoice when you made the purchase, you can request one from the supplier and they must provide it within 28 days of requesting it.
If your circumstances change and you no longer need to be registered, you can cancel your GST registration.
Support and resources
Visit GST registration for not-for-profits to find out more about how to register for GST and how to calculate your GST turnover. You may also want to consider what GST concessions may be available to your NFP.
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