Capital gains tax (CGT) is a component of income tax. The operations of NFP organisations may have CGT consequences.
Wholly owned corporate groups may have the option of consolidating for income tax. While a non-profit company can be the head company of a consolidated group, it cannot be a subsidiary member.
If your organisation provides a fringe benefit to its employees, it may have a fringe benefits tax (FBT) liability. Your organisation will need to distinguish between employees, volunteers and independent contractors.
Goods and services tax (GST) is a broad-based tax of 10% on the sale of most goods, services and anything else consumed in Australia. Some issues your organisation may need to consider are the effect of GST on:
- vouchers and gambling
- tips and gratuities
- taxable income.
State and territory governments levy stamp duty, payroll tax and land tax. They also have their own laws regulating fundraising activities of NFP organisations.
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