BAS Agent GST and FBT

BAS Agent

GST Registration

The following information is general in nature and does not take into account the particular circumstances of your organisation and you should consider seeking professional advice.

If your not for profit organisation has an annual turnover of $150,000 or more (as at August 2021) your organisation must register for GST. You can voluntarily register if your turnover is a lesser amount.

Generally, donations are not included in calculating turnover for GST. Government grants will be required to be included is expected to perform a service such as to carry out a project as a condition of the grant. Fundraising activities such as fetes and raffle ticket sales are generally not included in the threshold calculation.

Having an ABN does not mean you are registered for GST.

As a charity is it worth registering for GST?

If you purchase a significant amount of goods and services that are subject to GST such as commercial rental then as a GST registered charity you will be able to claim the GST paid on those purchases and obtain a refund.

However, a government grant that includes GST will mean that the GST included in that grant will have to be treated as GST collected and paid to the ATO after the set-off of tax credits. Also, any GST paid for purchases for fundraising activities cannot be claimed but you will not be required to charge GST on sales in connection with the fundraising activity. There are exceptions.

Another consideration is the inconvenience and costs associated with GST 7% to the ATO if registered for GST.

Business Activity Statement (BAS) Reporting

Generally, a BAS needs to be lodged a month after the end of each calendar quarter except for the December quarter where you have to the 28 February to lodge the BAS. This is recommended if you are expecting refunds. There is the option of reporting annually if your not for profit organisation voluntarily registered for GST. The due date is 28 February for the previous year ended 30 June.

Fringe Benefits Tax (FBT)

If your not for profit organisation has employees and it provides them or their associates with fringe benefits you may need to register for fringe benefits tax. The FBT year is 1 April to 31 March with the FBT return Generally the payment and lodgment date is 21 May.

Various benefits have thresholds so that FBT does not apply if the value of the benefit is within the threshold for that particular benefit.

Salary packaging which includes fringe benefits can be attractive to employees of not for profit organisations. Many not for Profit organisations are entitled to FBT concessions. This is usually in the form of FBT rebates or refund of FBT paid up to a threshold of 47% of $30,000 (valid to 31 March 2022).

It is challenging to determine if FBT applies and if so completing the annual FBT return.

Registered BAS Agent

The Business Physician Pty Limited trading as Not for Profit Bookkeeping is a registered BAS Agent, registration number 89212007.