If you receive a grant or funding to run your Indigenous corporation, you may need to pay GST.
GST is a tax of 10% on most goods and services sold or consumed in Australia.
You only need to consider GST if your organisation is either:
- registered for GST
- required to be registered for GST.
If your corporation receives funding in exchange for promising to do or create something, you will need to pay GST on that funding amount.
You may be asked to provide a tax invoice to the funding body, which must include the GST amount.
Sometimes the people providing the funding may give you a tax invoice that shows how much GST to pay. You should set aside the GST amount, report the grant in your business activity statement (BAS) and pay the GST to us.
You don’t always need to pay GST on a funding or grant. If your organisation received a grant only because it met an eligibility requirement, usually no GST payment is required.
Eligibility requirements generally include:
- doing an activity which addresses a social need, such as homeless services or a food kitchen
- operating in a specific location
- having deductible gift recipient status
- acquittal reporting.
If you need help, phone our dedicated NFP Advice Line on 1300 130 248 or our Indigenous helpline on 13 10 30 (8 am to 6 pm, Monday to Friday, except public holidays) or speak to a registered tax agent.
For more information and detailed scenarios on when to pay GST, visit Grants and sponsorships for not-for-profits.