GST registration for not-for-profits

When your NFP must register for GST

If you’re a not-for-profit (NFP) organisation, you must register for GST if you meet both of the following:

• You’re carrying on an enterprise.
• Your GST turnover is $150,000 or more.

Once you’re required to register for GST, you need to do so within 21 days.

If you’re no longer required to be registered, you can cancel your GST registration.

If you’re not an NFP, refer to Registering for GST to work out when you must register for GST.

If you don’t register for GST when required

If you don’t register for GST when you’re required to:

• we must register you even if you didn’t apply
• you may have to pay GST on supplies made since the date you were required to register
• penalties may apply.

When your GST turnover meets the registration threshold

Your GST turnover meets the registration turnover threshold if either:

• Your current GST turnover is $150,000 or more and your projected GST turnover is not below $150,000. Your current GST turnover consists of the value of most of your supplies made in the current month and the previous 11 months.
• Your projected GST turnover is $150,000 or more. Your projected GST turnover consists of the value of most of your supplies made in the current month and the next 11 months.

You don't have to register for GST or remain registered for GST if your projected GST turnover is less than $150,000, even if your current GST turnover is at or above $150,000.

If you’re not registered for GST, check your turnover each month and take steps to register for GST if your projected GST turnover is $150,000 or more.

Working out your GST turnover

You must include the value of most of your supplies when working out your GST turnover, including:

• GST-free supplies, such as non-commercial activities and supplies of donated second-hand goods
• membership fees if you provide goods, services or rights to your members for those fees
• payments received from sport vouchers as these are part payments for the relevant sports registration
• payments from government if you provide goods, services or rights to the government.

You do not include in your GST turnover the value of the following:

• input-taxed supplies, such as certain fundraising events and supplies of food and beverages at a school tuckshop, which you have chosen to treat as input taxed
• gifts and donations that are voluntary and do not give the donor a material benefit
• supplies not connected with an enterprise that you carry on
• supplies not connected with Australia
• supplies to associates that aren’t for payment and aren’t taxable
• payments you receive that are not for any supply you make, for example, some government grants.

When working out your projected GST turnover, you also exclude:

• amounts you receive for the supply of a business asset, such as when you sell a capital asset
• any supply you make, or are likely to make, solely as a consequence of either ceasing to carry on your enterprise, or substantially and permanently reducing the size or scale of your enterprise.

How to register

You can register for GST or other taxes when you apply for an ABNExternal Link.

If you already have an Australian business number (ABN), you can register for GST:

• online via Online services for business
• by phone on 13 28 66
• through your registered tax or BAS agentExternal Link.

We'll notify you in writing of your:

• GST registration details, including the date your registration is effective
• ABN details if you haven't already received them.

Your responsibilities if you’re registered for GST

If you are registered for GST, you:

• are liable for GST on taxable supplies you make
• are entitled to GST credits for GST included in the price of things you purchase
• must lodge a business activity statement (BAS) to report and pay GST and claim GST credits
• must provide a tax invoice, for any taxable supply you make, within 28 days of a purchaser requesting it and include an amount of GST on the tax invoice.

You can claim GST credits for any GST included in the price of purchases you make related to your enterprise if you hold a valid tax invoice.

Some supplies you make do not include GST in the price. These are called GST-free supplies or input-taxed supplies.

You should consider what GST concessions are available to you if you’re an endorsed charity, gift-deductible entity or government school.

Not registering for GST

If you are not registered and are not required to be registered for GST, you:

• don’t include GST in the price of your supplies
• can’t claim GST credits for the GST included in the price of purchases you make in carrying on your activities.

Choosing to register for GST when it’s not required

If you’re carrying on an enterprise and your GST turnover is less than $150,000, you can choose to register for GST.

Your decision to voluntarily register for GST should be based on your needs. You should consider whether the benefits to you, such as claiming GST credits, outweigh the administrative requirements of regularly lodging a BAS.

Non-profit sub-entities

If you’re an endorsed charity, gift-deductible entity that is an NFP, government school or an income tax exempt NFP, you may choose to create non-profit sub-entities for your separately identifiable branches.

Non-profit sub-entities are separate entities for GST purposes. A non-profit sub-entity can have its own ABN and be registered for GST.

The GST registration threshold for a non-profit sub-entity is $150,000 or more. This applies to each non-profit sub-entity created by the parent entity.

For more information on when you can create a non-profit sub-entity, see GST branches, groups and non-profit sub-entities.