When you can claim GST credits
You can only claim GST credits on reimbursements you pay to volunteers for things the volunteer purchased if you meet all of the following:
- You're an endorsed charity, eligible gift-deductible entity or government school.
- The expenses directly relate to the volunteer's activities.
- The expense is for a taxable supply.
- For reimbursements over $82.50 GST inclusive – you hold a valid tax invoice that was issued to the volunteer.
- The expense is not a non-deductible expense.
- The volunteer is not entitled to GST credits for the expense.
If your organisation does not meet all of the above criterion, you can't claim GST credits when you reimburse a volunteer.
However, if you're an NFP you may be able to claim GST credits when you reimburse either:
View our definitions of entity types that are eligible for GST concessions if you're unsure if you're one of the entity types listed above.
Example: NFP not entitled to GST credits when reimbursing volunteers
Monty Sporting Club is an NFP registered for GST and is not an endorsed charity or gift-deductible entity. Balint volunteers as a cricket coach for the Monty Sporting Club. Balint is not an employee, agent or officer for the sporting club.
Balint uses his own car and purchases petrol to travel to training sessions and matches. GST is included in the price of the petrol.
Monty Sporting Club reimburses Balint for petrol costs incurred in travelling to training sessions and matches. Balint provides the tax invoice for his fuel purchases to the Monty Sporting Club.
The Monty Sporting Club can't claim GST credits for the reimbursement made to Balint because they aren't an endorsed charity or gift-deductible entity and Balint is not an employee, agent or officer of the club.
End of exampleWhat is a reimbursement
You make a reimbursement when you pay a volunteer the full amount, or part of the amount, for the expense directly related to their activities as a volunteer.
You also make a reimbursement if you:
- make a payment on behalf of your volunteer for an expense they have incurred but haven't yet paid – for example, you pay the volunteer's bill on their behalf
- pay your volunteer before the expense is incurred, but the volunteer must repay any amount they don't spend.
Example: endorsed charity claiming GST credits
Welcoming Arms is an endorsed charity and is registered for GST. Welcoming Arms operates a crisis centre. The charity uses a number of volunteers to provide its services.
Olivia is a volunteer for the crisis centre. She takes calls from her home, using a separate phone and mobile plan. These expenses include GST in the price.
Welcoming Arms reimburses Olivia for her phone expenses relating to her work for the centre. Olivia provides Welcoming Arms with the tax invoices from her phone and mobile providers.
Welcoming Arms is entitled to claim a GST credit for the reimbursement paid to Olivia.
End of example
Example: reimbursing training expenses
Dimitris is a volunteer counsellor for Welcoming Arms. Dimitris attends a training session on conflict resolution to assist with supporting people attending the crisis centre. The training session is taxable and the price includes GST. He receives a tax invoice for the training session and provides the invoice to Welcoming Arms.
Welcoming Arms pays the invoice directly on behalf of Dimitris.
Welcoming Arms' payment is treated the same as a reimbursement. It's entitled to claim a GST credit for the amount paid on Dimitris' behalf, even though he didn't pay the bill, because he incurred the expense.
End of exampleEmployee of an NFP
If you're an NFP reimbursing your employees, refer to GST and employee reimbursements.
Agent for an NFP
If you're an NFP, you can claim GST credits when you reimburse an agent if you meet all of the following:
- The agent is authorised and acting on your behalf.
- The expense directly relates to their activities as your agent.
- The expense is for a taxable supply and the agent is not entitled to a GST credit for the expense.
- For reimbursements over $82.50 GST inclusive – you hold the valid tax invoice that was issued to the agent.
- The expense is not a non-deductible expense.
Officer for an NFP
If you're an NFP that is also a company, you can claim GST credits when you reimburse an officer (such as a director, secretary or an executive officer) when you meet all of the following:
- The expenses directly relate to their activities as an officer.
- The expense is for a taxable supply and the officer is not entitled to a GST credit for the expense.
- For reimbursements over $82.50 GST inclusive – you hold the valid tax invoice that was issued to the officer.
- The expense is not a non-deductible expense.
Example: claiming GST credits for reimbursing an officer
The Lawnmowers Association of South Australia is a company and an NFP registered for GST. The association is not an endorsed charity or gift-deductible entity. Annika is its voluntary secretary.
Annika attends an interstate conference on the latest lawnmower technology in her role as an officer for the association. She incurs travel expenses which include GST in the price.
Annika provides the tax invoices for her travel expenses to the association. The association reimburses Annika for her travel expenses.
The association is entitled to claim GST credits for the reimbursement paid to Annika.
End of exampleFurther information on GST and reimbursements
Refer to GST issues registers – Charities consultative committee resolved issues Part 7 –Reimbursements, volunteers and payments to contractors for information on other aspects of how GST law applies to reimbursements to volunteers.