Education Law Articles - GST

Questions about GST?
Contact Uv%D0%F0%D5%D1h%98%E7%B5%CEu+61 2 9267 9800

New from the ATO

The Australian Taxation Office has released a new online guide to the goods and services tax (GST). The guide is designed to provide not-for-profit organisations, charities and gift-deductible entities with information to help them meet their GST obligations. In particular, the guide covers areas of GST administration that non-profit organisations often have difficulty with. It also provides handy references and links to more detailed GST information.

The ATO has also released a new version of its guide Fundraising for non-profit organisations, replacing the one issued in March 2005. The guide explains the tax treatment of various fundraising activities and the concessions available. It also outlines state, territory and local government requirements in relation to fundraising. The new version incorporates changes to the tax law including:

• new tax deductions for gifts and contributions of shares
• new deductible gift recipient (DGR) categories for the relief of victims of disasters
• changes to the gift fund requirements for DGRs
• changes to the limits for tax deductible contributions
• changes to the GST registration turnover and cash accounting thresholds, and
• changes to the fringe benefits tax minor benefits threshold.
   

GST and School Events

The introduction of the GST has forced schools to consider what school events have GST consequences. A recent GST ruling by the Australian Tax Office (ATO) has shed light on this issue.

An event has GST consequences if a “taxable supply” is made for “consideration”. Consider the awarding of scholarships or prize money to a student. Awarding money to a student cannot be considered a “taxable supply” by the school as the definition of “taxable supply” does not include a supply of money. Money can be “consideration” for a “taxable supply” made by a student (or the winner of the scholarship). The ATO ruling states that a “taxable supply” in this circumstance includes the act of participation by the student, for instance, by sitting an exam or being assessed on sporting ability. However, the participation by the student will only be a “taxable supply” if it is made in the course or furtherance of an enterprise. It is highly unlikely that a student will be participating in school events, or applying for scholarships, in the course or furtherance of an enterprise. It is also unlikely that students will be registered for GST. Therefore, there are no GST consequences.

The GST ruling also makes clear that the ATO considers medals, ribbons, trophies and other similar prizes to be of no market value and that the participation by students in a quiz or sporting event run by the school is of no market value. In such cases, the school can still claim an input tax credit for the purchase of the prize but there are no GST consequences for the winner.
 

New from the ATO

The Australian Taxation Office has released a new online guide to the goods and services tax (GST). The guide is designed to provide not-for-profit organisations, charities and gift-deductible entities with information to help them meet their GST obligations. In particular, the guide covers areas of GST administration that non-profit organisations often have difficulty with. It also provides handy references and links to more detailed GST information.

The ATO has also released a new version of its guide Fundraising for non-profit organisations, replacing the one issued in March 2005. The guide explains the tax treatment of various fundraising activities and the concessions available. It also outlines state, territory and local government requirements in relation to fundraising. The new version incorporates changes to the tax law including:

• new tax deductions for gifts and contributions of shares
• new deductible gift recipient (DGR) categories for the relief of victims of disasters
• changes to the gift fund requirements for DGRs
• changes to the limits for tax deductible contributions
• changes to the GST registration turnover and cash accounting thresholds, and
• changes to the fringe benefits tax minor benefits threshold.

Questions about GST?
Contact Uv%D0%F0%D5%D1h%98%E7%B5%CEu+61 2 9267 9800