GST

Fringe Benefits Tax

If your non-profit organisation is registered (or required to be registered) for GST, the money you raise from fundraising activities will be subject to GST unless the funds are a genuine gift to your organisation. Your organisation must be registered if its annual turnover is $150,000 or more. If you are a charity, gift deductible entity or government school, you may make GST free sales at certain fundraising events including where you:

Raise the funds by selling donated second-hand goods
Raise the funds by holding a raffle or bingo in accordance with Victorian law
Are able to treat any sales connected with your fundraising event as input taxed

In this case, the funds raised will not be subject to GST, but you will not be able to claim credits for the GST in any purchases connected with the event.

For more information about how GST impacts your organisation contact the Australian Tax Office on 1300 130 248 or check out the ATO website.

You may also want to refer to the PilchConnect website on GST.

Fringe Benefits Tax

FBT is payable by an employer who provides fringe benefits to its employees or their associates. FBT is payable at a flat rate of, in effect, 48.5% of the value of the benefits, but many non-profit organisations are entitled to a rebate on the rate of tax, and a limited number of organisations are exempt from FBT altogether. It is imposed even if your organisation is exempt from income tax.

For more information about how FBT may impact your organisation contact the Australian Tax Office on 1300 130 248 or check out the ATO website, or the PilchConnect page on FBT.