If you thought that not for profit organisations did not have to pay GST, you are wrong.  Like any other business, there are certain conditions which apply around the paying of GST.

GST stands for goods and services tax which is set at a rate of 10% on the sale of most goods and services consumed in Australia.

If yours is a small club with a small turnover, you may not have to worry about GST at all, however if your turnover is $150,000 or more, you are required to register for GST.

The ATO says “GST is a tax on transactions. Where a non-profit organisation is registered (or required to be registered) for GST, the price of most sales of goods and services and anything else will be inclusive of GST. Similarly, the organisation may be entitled to claim GST credits on the purchases it makes in carrying out its activities.”

That means that your organisation must include 10% GST on your sales, but you will be able to claim back any GST you yourself have paid when buying in your stock or paying for services.  However, if you receive grants, you may need to pay GST no the amount.

There are a range of concessions for charities and non-profits so it is worth chatting to your accountant about them to ensure that you are receiving everything your NFP is entitled to.  In the meantime, take a look at the ATO’s Guide “GST tips for non-profit organisations.”