The structure, function and finances of your organisation will determine the type of state and federal tax you need to pay and eligible tax concessions for your organisation.
On this page you will find information to help you get started with managing your organisation’s tax needs:
Australian Business Number (ABN)
Goods and Services Tax (GST) Fringe Benefits Tax (FBT) Pay as you go (PAYG) withholding Tax deductible gifts and fundraising State government taxes Record keeping, administration and payment
Australian Business Number (ABN)
An
ABN helps to identify your organisation in its dealings with the Australian Taxation Office (ATO) and other government agencies.
Non-profit organisations can use an ABN to:
- register for goods and services tax (GST) and claim GST credits
- register for pay as you go (PAYG) withholding
- apply to the Tax Office for endorsement as a deductible gift recipient, tax concession charity or income tax exempt fund
- interact with other government departments, agencies and authorities,
- interact with the Tax Office on other taxes, such as fringe benefits tax (FBT).
Information on how to
register for an ABN can be found on the ATO website.
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Goods and Services Tax (GST)
The
GST is a tax on transactions and is a broad based tax of 10% on the sale of most goods, services and anything else consumed in Australia.
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.
A non-profit organisation - whether or not it is a charity - must register for GST if it is carrying on an enterprise and its GST turnover is $150,000 or more in any one year. Note: GST turnover does not include input taxed sales or donations.
Registering for GST, among other things, requires the organisation to complete a
business activity statement (BAS) on a regular basis.
Find
more information about GST on the ATO website.
Fringe Benefits Tax (FBT)
FBT is a tax payable by employers who provide fringe benefits to their employees or to associates of their employees.
If your organisation provides a fringe benefit to its employees or to associates of its employees - typically family members, your organisation may have an FBT liability. This is separate from income tax and is calculated on the taxable value of the fringe benefits provided.
Even if your organisation is exempt from income tax, it may still have to pay FBT. However there are certain FBT concessions that can reduce your organisation’s liability.
Find
more information about FBT on the ATO website.
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Pay as you go (PAYG) withholding
Under
PAYG withholding, employers are required to withhold amounts paid to employees and regularly send those payments to the ATO.
Businesses and other enterprises must deduct amounts from certain payments they make to others, including:
- payments to employees, company directors and office holders
- payments under labour hire arrangements
- payments under voluntary agreements
- payments where an Australian Business Number (ABN) has not been quoted.
Find more
information on PAYG withholding through the ATO website.
Tax deductible gifts and fundraising
Certain organisations are entitled to receive income through
tax deductible gifts and tax deductible contributions. These organisations are called deductible gift recipients (DGRs).
The income tax law determines which organisations and types of organisations can
qualify as DGRs.
Organisations that meet the requirements for endorsement can apply to the ATO using an
application for endorsement as a deductible gift recipient
If your organisation wants to receive tax deductable gifts, download the
GiftPack from the ATO.
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State government taxes
Depending on the structure of your organisation, you may be obligated to pay State Government taxes such as:
- stamp duty
- payroll tax
- land tax
- emergency services levy.
Record keeping, administration and payment
Being aware of the types of records your organisation should keep and practicing good bookkeeping will help with organising your taxes.
Some of the basic records you may need to maintain are:
- cash book records of daily receipts and payments
- GST tax invoices and income tax records, such as debtors and creditors lists, stock take records and motor vehicle expenses
- records of payments relating to employees, such as PAYG withholding, superannuation and fringe benefits payments
- records of payments withheld from suppliers who do not quote an ABN
- bank reconciliation statements.
Find out more about
record keeping from the ATO.
More information
On this site
Resources for community organisationsManaging a community organisationFrequently asked questions about community organisationsOther websites
Information for not-for-profit organisations- ATO
New administrators induction package- ATO
Non-profit tax concessions- ATO
Non-profit news service- ATO
Revenue SA