If your non-profit organisation is registered (or required to be registered) for GST, any money your organisation makes from a taxable sale will be subject to GST unless the funds are a genuine gift to your organisation. Your organisation makes a taxable sale if it is registered (or required to be registered) for GST and:
- you receive payment for the sale
- you make the sale in the course or furtherance of your activities
- the sale is connected with Australia; and
- the sale is not GST-free or input taxed.
Your organisation must be registered for GST if its annual turnover is $150,000 or more. If your organisation is a charity, gift deductible entity or government school, you may make GST free sales, including:
- the sale of donated second-hand goods;
- the sale of tickets to a raffle or bingo in accordance with Victorian law; or
- by treating any sales connected with your fundraising event as input taxed.
However, if you treat sales as input taxed, while the funds raised will not be subject to GST, 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’s guide Tax basics for non-profit organisations at www.ato.gov.au/Non-profit.
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.