A New Tax System (Goods and Services Tax) Act 1999

Chapter 3 - The exemptions  

Part 3-1 - Supplies that are not taxable supplies  

Division 38 - GST-free supplies  

Subdivision 38-G - Activities of charities etc.  

38-250   Nominal consideration etc.  

(1)  
A supply is GST-free if:


(a) the supplier is an * endorsed charity , a * gift-deductible entity or a * government school ; and


(b) the supply is for * consideration that:


(i) if the supply is a supply of accommodation - is less than 75% of the * GST inclusive market value of the supply; or

(ii) if the supply is not a supply of accommodation - is less than 50% of the GST inclusive market value of the supply.

(2)  
A supply is GST-free if:


(a) the supplier is an * endorsed charity , a * gift-deductible entity or a * government school ; and


(b) the supply is for * consideration that:


(i) if the supply is a supply of accommodation - is less than 75% of the cost to the supplier of providing the accommodation; or

(ii) if the supply is not a supply of accommodation - is less than 75% of the consideration the supplier provided, or was liable to provide, for acquiring the thing supplied.

(3)  
(Repealed by No 169 of 2012)

(4)  


Subsections (1) and (2) do not apply to a supply by a * gift-deductible entity endorsed as a deductible gift recipient (within the meaning of the * ITAA 1997 ) under section 30-120 of the ITAA 1997, unless:


(a) the supplier is:


(i) an * endorsed charity ; or

(ii) a * government school ; or

(iii) a fund, authority or institution of a kind referred to in paragraph 30-125(1)(b) of the ITAA 1997; or


(b) each purpose to which the supply relates is a * gift-deductible purpose of the supplier.

Note:

This subsection denies GST-free status under this section to supplies by certain (but not all) gift-deductible entities that are only endorsed for the operation of a fund, authority or institution. However, supplies can be GST-free under this section if they relate to the principal purpose of the fund, authority or institution.




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