rss.livelink.posts-in-node

Re: government grants received

ChrisR — Thu, 27 Feb 2020 06:56:55 GMT

Thanks for your post.

The not-for-profit (NFP) organisation won't be required to pay GST on a grant if it doesn't make a supply in return for the funding. For more information you can check out the NFP grants and sponsorship page on our website.

You can also take a look at the following thread for information on how to contact us if you require further guidance about the GST aspect of your question: Grant received

As to whether the NFP would have to declare the grant as income, have a read of the following thread: NFP Community Organisation Gov't Grant

Hope this helps.

Thanks,

ChrisR

Re: Becoming a DGR

KylieS — Wed, 26 Feb 2020 06:34:57 GMT

Hi ,

Eligibility for DGR status is based on endorsement categories and the organisation's purpose.

Each DGR category has very specific requirements.

There a number of categories under the education group, however ‘day care facilities’ is not one of the 50 DGR endorsement categories.

Please contact our Not-for-profit Advice Team if you wish to discuss this matter further.

KylieS

Re: NFP football club

KylieS — Tue, 25 Feb 2020 01:03:38 GMT

Hi ,

To add to the great information from ;

The football club is able to choose to form non-profit sub-entities which will be treated as separate entities for GST purposes. The main entity must be registered for GST, however the non-profit sub-entities are only required to be registered for GST if their turnover is $150,000 or above.

There is some information on out website about non-profit sub-entities that might help.

KylieS

Re: NFP football club

TaxedoMask — Tue, 25 Feb 2020 00:08:52 GMT

Pretty easy google result. Short answer is yes but it depends (since if you are treating as a GST free supply, it may tip the entity over the 150k threshold).

Under s. 38-270 of the GST Act, where the supplier of tickets in a raffle is an endorsed charity, a gift-deductible recipient (DGR) or a government school, the supply will be GST-free if it does not contravene a state or territory law. GST-free supplies are counted towards an entity’s GST turnover. However, the entity is entitled to claim GST credits for any purchases associated with the raffle.

However, if the sale of raffle tickets is in connection with a fundraising event, and the endorsed charity/DGR has chosen to treat that event as an input taxed fundraising event, all sales made in connection with that event (including the supply of raffle tickets) are input taxed. Input taxed supplies are excluded from an entity’s GST turnover and are not subject to GST. However, the entity will not be entitled to claim GST credits for any purchases for that event, including purchases associated with the raffle.

Re: Becoming a DGR

KylieS — Mon, 24 Feb 2020 03:28:10 GMT

Hi ,

We will look into this one for you.

KylieS

government grants received

BBbowls — Mon, 24 Feb 2020 00:21:43 GMT

when a NFP organization receives grants for the improvement of Facilities from a government body, with nothing in return by the club, ( upgrading facilities to improve and involve disability members) is the grant received included in the organizations income ? ( Is there the need to show income and expenditure in the profit and loss statements.)

Thus this amount received contribute to the $150.000 threshold re GST for NFP organizations?

Re: NFP football club

KylieS — Sat, 22 Feb 2020 06:16:18 GMT

Hi ,

Interesting question, we will look into it.

Unless anyone in the Community can provide an answer quicker than we can research.

KylieS

Re: myGovID on Samsung S5

KylieS — Thu, 20 Feb 2020 06:43:30 GMT

Hi ,

Thanks for your post.

You are correct the system requirements are that you do require Android 7.0 (Nougat) or later to able to access the app.

KylieS

Re: Earnings from contract with the United Nations

KylieS — Thu, 20 Feb 2020 04:03:13 GMT

Hi ,

Looks like we have answered this one in past check out the response provided here.

KylieS

myGovID on Samsung S5

KP_ES — Wed, 19 Feb 2020 04:46:36 GMT

I have been using Auskey and now have to move to myGovID for my work in admin at a non profit preschool. I use Auskey to access the ATO portal for IAS & BAS, to submit STP etc as well as to access our funding body at ECCMS.

We dont have a work mobile phone. I will be using my personal phone which is a Samsung Galaxy S5, Android 6.0.1. The App store says my phone is not compatible with the myGovID app.

I'm guessing you will say that I have to have Android 7.0 or later.

Are you expecting all small users like me to buy new phones? I work part time. My income does not stretch to a new phone for the sake of one app.

Re: Public fund and DGR requirements

NateH — Wed, 19 Feb 2020 01:36:20 GMT

Hi ,

Due to potentially not having all the details we can only really give general advice on Community. If you're looking for tailored advice on your situation it may be worth getting in contact with our early engagement team.

Hope that helps! Thanks, NateH

NFP football club

SB510 — Wed, 19 Feb 2020 00:19:02 GMT

Hi, I am a treasurer of a football club that has just had to register for GST.

We have created a sub entity that will be GST free to run our catering functions etc.

Can I please clarify are we able to run our fundraising raffles under the GST free entity?

Re: Becoming a DGR

BCC — Tue, 18 Feb 2020 23:54:15 GMT

Can a standard NFP day care facility, registered as a charity get DGR status? I know we would fall under education, but the list of types doesnt seem to cover day care facilities. Thanks!

Re: Public fund and DGR requirements

ccb — Tue, 18 Feb 2020 04:04:55 GMT

Hi Mark,

Thankyou, I have already looked through those links but didn’t find many answers. Thanks anyway though, your help is much appreciated.

Re: Public fund and DGR requirements

MarkA — Tue, 18 Feb 2020 02:18:42 GMT

Thank you for your query and also in joining our community. Your very welcome!

Upon reflection there are a few variables that sit behind your questions so I think I have found a good link for you that you should be able to use to help you. See Deductible gift recipients Also visit the non-profit page link detailed on this . If you have further questions after you have looked at this please, come back to us and we will see how we can assist further.

Kind regards

MarkA

Re: Honorarium

TaxedoMask — Mon, 17 Feb 2020 05:15:09 GMT

The characteristic of the payment (based on how you described it) gives the appearance that it is not a genuine honorarium payment.

Some organisations provide benefits to volunteers that they may call an honorarium, allowance or one-off payment. However, if these payments are comparable to wages or a salary in disguise, then this may point to an employment relationship, and such payments should not be made to volunteers. The following are examples where a payment or pattern of payments may be deemed to be a wage or
payment for services:

if a payment is calculated with reference to time with the organisation or hours worked
if an allowance far exceeds the expenses actually incurred or is paid on a regular basis, or
a lump sum payment is in exchange for services provided.

emphasis mine, see here (Page 15)

Earnings from contract with the United Nations

stevewilson58 — Sun, 16 Feb 2020 21:41:40 GMT

I have been approached by the United Nations to undertake some consultancy work for them to improve statistics in an overseaqs country- not a long contract at just 25 days. However, reading all the documentation and talking to people has made me very confused about the tax arrangements. I have been told by someone who does a number of these contracts that this work is tax exempt and that is why the daily rate is low compared to my other contracts but I would like to make sure before I accept the work.

The income seems to be exempt as the United Nations falls under this:

activities of your employer as a prescribed charitable or religious institution exempt from Australian income tax because it's located outside Australia, or the institution is pursuing objectives outside Australia

Honorarium

Chris6543 — Fri, 14 Feb 2020 11:04:39 GMT

I’m part of an organisation that is choosing to pay its executive director an honorarium of $38k to do three days a week work. This seems more than is reasonable for an honorarium, but they are insisting they don’t need to withhold PAYG or pay super.

Public fund and DGR requirements

ccb — Thu, 13 Feb 2020 07:58:56 GMT

Hello,

I am after some advice about public funds. Sorry if what I'm about is all ignorant, but we are struggling to get answers.

We are a small wildlife shelter who were advised to create a public fund when we had an influx of animals and donation come through due to bushfires in 2009. We are no longer experiencing that influx and haven't for some time and are looking at the possibility of closing the public fund as it can be difficult to manage at times. Our main questions are as follows:

- Do we need a public fund to be able to give tax deductible gift reciepts? If we close the fund and are unable to give DGR's, can members of the public still claim donations?

- What is the maximum amount of money we can fundraise without a public fund, as a NFP organisation?

- If we close the public fund, could we apply to open another in the future if we get an influx of donations again?

Any help is much appreciated.

Cheers,

Cassey

Re: Reduction of travel allowance - specifically the meal allowance rate

ChrisR — Mon, 10 Feb 2020 13:52:18 GMT

Thanks for your question.

The determination sets out the travel and overtime amounts that we consider reasonable. These amounts only provide the maximum that your employees can claim without being required to substantiate their expenditure.

If you would like to have a look at Taxation Determination 2019/11, refer to our legal database.

You could theoretically set your own meal allowance rate as long as it is in accordance with your workplace's applicable award or agreement. If you require additional guidance about that, you may want to contact the Fair Work Ombudsman.

Thanks,

ChrisR

Re: Donations to church not separate entity

KylieS — Thu, 06 Feb 2020 07:24:14 GMT

Hi ,

No, it would not be deductible as it is not a DGR.

Thanks

KylieS

Re: Charity Employees and Exempt FBT income

ChrisR — Thu, 06 Feb 2020 01:26:21 GMT

Thanks for your question.

We recommend that you double check with your software provider to ensure that you are entering the amounts correctly. The gross wage figure shouldn't include any amounts that are exempt from tax.

The reportable fringe benefit amounts and reportable employer superannuation contributions section on our website provides some information on how you can report an employee's reportable fringe benefit amount via STP.

Hope this helps.

Thanks, ChrisR

Re: STP reporting

NateH — Tue, 04 Feb 2020 23:44:42 GMT

Hi ,

Thanks for your patience while we checked this for you.

1. You will need to check with your software provider about this as different software require different ways for you to finalise

2. For STP purposes you would not need to report make any additional FBT reporting after the end of the FBT year

Thanks, NateH

Reduction of travel allowance - specifically the meal allowance rate

Nezily_mondejar — Tue, 04 Feb 2020 07:22:56 GMT

Hi,

Our NFP organisation follows ATO TD 2019/11 3 July 2019 for travel allowance. Our new management would like to reduce the meal allowance rates as it is very high. Can the employer set their own meal allowance rate for staff travelling?

The Award that we are under do not have a prescripted amount, only the term "reasonable' amount. It is the ATO who set a specific amount that is why it is being adapted. But it seems that the amount from ATO is a burden to NFP like us, can we reduce it?

Thank you in advance for any word of advice out there.

Cheers, Nezi

Donations to church not separate entity

FBRMC — Mon, 03 Feb 2020 23:53:12 GMT

Hello,

My question is: can a tax deduction be claimed for a donation to a Church, if this is not a DGR, does not have its own ABN but it is a subsidiary of a DGR NFP organisation?

Thanks!

Re: my employer did not pay taxes or superannuation

JasonT — Mon, 03 Feb 2020 05:00:53 GMT

Hi ,

Thanks for getting in touch.

I'm very sorry to hear about your son's experience with this former employer. Employer's who don't do the right thing make life difficult for the employee, their family and a flow on effect to all taxpayers through unmet tax obligations.

Receiving wages paid in cash is legal but there are responsibilities for the employer and employee.

Check out: Receiving cash for work you do.

If your son was eligible to claim the tax-free threshold, his total income was under the threshold and no tax was withheld it's likely he was not required to lodge.

Have a look at: Do you need to lodge a tax return?.

If you find that returns were required for any years and we have received returns without all income reported you should lodge amendments.

Penalties and interest can be imposed on late lodgements or overdue amounts however you can request remission. The assessment process for remission requests do take in to account the taxpayer's circumstances.

Paying superannuation is an employer's obligation if the employee is entitled to super.

Find out what you need to do: Unpaid super.

The Fair Work Ombudsman can assist in regards to the former employer refusing to provide an employment separation certificate.

There's an option of making a tip-off to have concerns about the former employer investigated. It could result in them meeting obligations to their employees moving forward. Please note that an anonymous tip-off won't assist in recovering unpaid super or other employee entitlements.

Hope this helps, let us know if you have any further questions.

JasonT

Re: STP reporting

NateH — Mon, 03 Feb 2020 01:32:47 GMT

Hi ,

We are going to check this with a technical area and get back to you with a response soon.

Thanks, NateH

Re: identifying assessable income

macfanboy — Sun, 02 Feb 2020 05:25:17 GMT

No tax on gifts so exempt.

Re: identifying assessable income

Jay20 — Sun, 02 Feb 2020 05:25:16 GMT

What about direct amount $15000 as christmas gift from father? (no classification on whether its cash or credit)

Thnak you!

Re: identifying assessable income

macfanboy — Sun, 02 Feb 2020 04:22:52 GMT

(1) Exempt

(2) Exempt

(3) Assessable

identifying assessable income

Jay20 — Sun, 02 Feb 2020 02:58:19 GMT

1) An expensive perfume worth $250 gifted at Christmas time. received on account of employment.

2) A monthly entertainment event paid by the restaurant owner. The owner spends around $380 on the meals. received on account of employment.

3) Tip $335 cash

are these two scenario under assessable or exempt income?

Charity Employees and Exempt FBT income

Posca — Sun, 02 Feb 2020 00:57:14 GMT

When you send pays to the ATO STP, should your gross wages include the exempt $611.50 per fortnight or not. I use MYOB and they only let me deduct the exempt amount from the gross pay. How does STP allow for the exemption at the end of the year so that the exempt is actually exempted?

Re: Becoming a DGR

Glenn4802 — Sun, 02 Feb 2020 04:04:04 GMT

DGR status is only given to organistions or funds that are listed, or fit into one or more of the categories specified, in legislation. The specified categories do not include religious institutions.

However, an organisation, such as the National Trust, may be able to establish a DGR appeal if your building is of heritage significance. Here is a link to their NSW website, search for the appropriate page if you are in another State or Territory.

Becoming a DGR

Kathboy534 — Fri, 31 Jan 2020 06:33:25 GMT

The church I attend is trying to raise money for restoration of stained glass windows. We would like to set up a gift fund and ask for donations from the public. How do we go about becoming a DGR, so that we can offer tax deductibility to those who donate?

my employer did not pay taxes or superannuation

donna1 — Wed, 29 Jan 2020 04:00:23 GMT

Hi, my son worked in a coffee shop for 6 years. On employment there, the employer said that he pays no taxes or superannuation to his employees. Salaries are paid in cash. Because my son has a mental illness, he preferred to take any job rather than sit at home. So he agreed.

Question: If my son reports this type of evasion, is my son also guilty of tax evasion? (note here that my son would have had to mention his employer's name when putting in a tax form, and that would have got his employer in trouble)

My son quit his job due to stress. The employer refuses to give my son a letter which says he is no longer employed there. Hence, Centrelink won't allow any welfare. The question is how do we prove my son worked for this employer? And how do we go about it?

STP reporting

Ulrich — Wed, 29 Jan 2020 01:31:33 GMT

Hello ATO. I have two questions for you:

1. Acting as the employer, I have set up STA and am using a software provider to lodge fortnighly statements to the ATO for one employee which includes info on a fringe benefit portion and some withholdong tax. Recently I received an emai from the ATO stating that I need to make a finalisation declaration before 31/7 by providing a finalisation indicator for the employee. How do I provide a finalisarion indicator?

2. The tax exempt fringe benefit portion for the employee is being lodged into an ATO approved b-packaged account. The bank informs me that 31/3/2020 is the end of the FBT year. I am currently reporting the FBT portion fortnightly to the ATO via approved software. Does the ATO require extra information at the end of March such as an FBT annual Statement from the bank?

Re: Registered Charity-GST-supply & sale electricity via embedded network to retirement residents

KylieS — Wed, 22 Jan 2020 20:15:30 GMT

Hi ,

Thanks for your patience.

The GST area have advised that this is a complex issue and request that you contact them via gstmail@ato.gov.au

KylieS

Re: Registered Charity-GST-supply & sale electricity via embedded network to retirement residents

KylieS — Tue, 21 Jan 2020 22:21:14 GMT

Hi ,

We will look into this one and get back to you.

KylieS

Re: Appopriation transferred to third pary

KylieS — Mon, 20 Jan 2020 05:27:30 GMT

Hi ,

As of 1 July 2012, a payment will not be subject to GST if all the following apply;

•   the payment is made by a government related entity (GRE) to another GRE for making a supply
•   the payment is covered by an appropriation under an Australian law or is made under a specified intergovernmental health reform agreement
•   the payment satisfies the non-commercial test.

The transfer of funds to a third party (non-government entity) may be consideration for a taxable supply made by the third party.

However, we would need further details on the appropriation/grant and the contractual arrangements with the non-government entity to provide further advice.

If you would like to email this information to GSTmail@ato.gov.au we would be happy to provide a more detailed response.

Thanks

KylieS

Re: Appopriation transferred to third pary

KylieS — Sun, 19 Jan 2020 20:39:01 GMT

Hi ,

We will look into this one and get back to you.

KylieS

Registered Charity-GST-supply & sale electricity via embedded network to retirement residents

SMW — Fri, 17 Jan 2020 05:16:54 GMT

Does GST apply when a registered charity supplies and sells electricity via an embedded network to retirement residents?

GST concessions for non-profits organisations information states - certain supplies made by a registered charity that operates a retirement village may be GST-free. Those supplies must be made by the charity to a resident of the retirement village. The range of supplies which this GST-free treatment applies to, includes the supply of accommodation and the services related to the supply of accommodation.

Would appreciate any comments to support or unsubstantiate whether GST will or won't apply

Re: Tax implication on multiple scholarship holder

macfanboy — Fri, 17 Jan 2020 02:44:59 GMT

Whether scholarships are taxable or not depends on many different things.

It is best to complete the "Is my Scholarship taxable?"

Tax implication on multiple scholarship holder

RosieTrinh — Fri, 17 Jan 2020 00:14:26 GMT

Hi all,

I have a question about tax implication for mutiple scholarship holders.

If a person receives concurrent scholarships for the same course, should she or he need to pay income tax?

From my understanding, full-time study scholarship is exempted from paying income tax. However, in case a person holds mutilple scholarships for different courses, can all of them be treated as fulltime scholarship? it is suspicious that a person can do two full-time studies at the same time so I was wondering in this case if the money received from scholarships should be considered as an income and being taxed.

Thank you

Appopriation transferred to third pary

Jeansy — Thu, 16 Jan 2020 01:15:12 GMT

Sceneraio

Government related entity provideds funds that are government appropriation to another government related entity for research. The government related entity who received the funds then subcontracts the research to a non governement entity. The funds are transferred periodically to this non government entity.

My question is the funds from governement entity to government entity would be outside the scope of GST if appropriation. If the funds are then transferred to third party to do the research, is this transfer also outside the scope of GST? I have found conflicting advice searching for information.

Re: Gst cash prizes

NicolaC — Mon, 06 Jan 2020 00:23:18 GMT

the rules around GST and prizes vary depending on your situation. Take a look at this guide on our legal database and let us know if you have any further questions.

Thanks,

NIcolaC

Re: with holding tax

macfanboy — Sat, 21 Dec 2019 23:11:27 GMT

Withholding tax can be claimed back via lodging tax returns.

You can file amendments for the previous 2 years.

With the remaining ones as you have exceeded the 2-year limit, you should file an objection to the 2-year limit requesting the tax.

with holding tax

Aurora2020 — Sat, 21 Dec 2019 08:50:47 GMT

Our Rotary Club has had a long term deposit with the St George Bank since 2010, as we did not have a Tax File Number until last week, St George have been with holding tax on that account sine 2010.

I understand that the bank should refund any wth holding tax for the current faninacial year but how can we claim back any moneys deducted from previous finacial years.

the Form on the ATO website doesnt appear to applay to our needs as a not for profit Rotary Club

Re: if a consultant donates their time can they claim that as a tax deduction

Mark1 — Tue, 17 Dec 2019 08:13:59 GMT

A donation of a service, including a volunteer’s time, is not tax deductible as no money or property is transferred to the DGR.

https://www.ato.gov.au/non-profit/your-workers/your-volunteers/donations-by-volunteers/

This is my personal view; I’m an ATO employee who chooses to help out here in my own time

Re: Record Keeping for Minor benefits under $300

ChrisR — Tue, 17 Dec 2019 05:37:14 GMT

Welcome to our Community.

A minor benefit is exempt from FBT where it is both:

less than $300 in notional taxable value (that is, the value if it was taxable), and
unreasonable to be treated as a fringe benefit.

There are five criteria that need to be considered when determining whether it would be reasonable to treat the benefit as a fringe benefit. You can view them on our website by referring to the minor benefits exemption page.

The fourth criterion listed is:

The practical difficulty in determining what would be the notional taxable value of the minor benefit – this includes consideration of the difficulty for you in keeping the necessary records in relation to the benefit.

For more detailed information, you can also refer to Fringe benefits tax - a guide for employers Chapter 20 - Fringe benefits tax exempt benefits which can be accessed from our legal database.

Hope this helps.

Thanks,

ChrisR

if a consultant donates their time can they claim that as a tax deduction

Venessam — Tue, 17 Dec 2019 05:21:44 GMT

We are DGR so donations are tax deductable. If a consultant issues an invoice for say $250 then the next line item is donated -$250 equalling a zero total. (or any combo) can he use that as a tax deduction or do we need to issue a separate receipt for donated time

Re: Record Keeping for Minor benefits under $300

Biggiesmalls — Tue, 17 Dec 2019 05:06:15 GMT

https://community.ato.gov.au/t5/Business-tax-questions/Gift-cards-to-contractors-and-clients/m-p/24527#M2146

This thread might help

Gst cash prizes

ALADAM — Mon, 16 Dec 2019 23:25:44 GMT

For gst are cash prize money able to be offset against entry fees

Re: Fringe benefit admin queries for not-for-profit organisations

KylieS — Mon, 16 Dec 2019 06:13:49 GMT

Hi @g4sjlee,

Thanks for your patience.

1. The 40% that you have decided on is something that is a workplace issue and is a private arrangement. The amount that is paid as salary or wages will be subject to normal income tax rules.

Check out this tax ruling which explains that to be exempt, the benefit must be provided by a registered religious institution to an employee who is a religious practitioner.

2. Classifying expense payments – an expense that is paid by the employee. The expense is then reimbursed by the employer to the employee – records need to kept

An example is;
If an employee spends $4,000.00 on a credit card and the employer pays it back to them, it would be a $4,000.00 expense payment benefit, substantiated by the credit card statement.

3. Regarding the administration of payments- you will need to keep records of each expense incurred to establish that it is a reimbursement and not salary and wages.

4. Same applies for points 1,2 and 3 – you will need to keep records to establish reimbursement.

5. The example of the cheque card being used – to be able to apply an exemption on the payment by the employer, it must be where the employee spent money and the employer reimburses thm. Otherwise it will be considered salary and income tax will need to be paid.

Thanks

KylieS

Re: Donations to non DGR (but NFP) entity

Biggiesmalls — Mon, 16 Dec 2019 03:41:45 GMT

have you seen this page?

https://www.ato.gov.au/non-profit/gifts-and-fundraising/fundraising-events/running-fundraising-events/

If the business who is supporting the event gets a benefit for their contribution its generally not tax deductible. If there is no benefit than it can be tax deductible. To claim there's a list of conditions on the website. I would categorise as donation if there's nothing received in return

You may also find this link helpful - https://www.ato.gov.au/Non-profit/Gifts-and-fundraising/In-detail/Fundraising/State,-territory-and-local-government-requirements/

Re: Tax

KylieS — Mon, 16 Dec 2019 03:08:05 GMT

Hi ,

Thanks for your patience.

There are 3 things that need to be considered;

Is this a payment which would form part of an ETP in which case it would not be a fringe benefit but may have income tax consequences? Check out FBT a guide for Employers Chapter 1.
A payment of cash (not an ETP) would not be FBT but would be salary and wages and taxed as such.
A gift card or voucher which would be a property fringe benefit but if under $300.00 may be exempt as a minor benefit. Check out FBT a guide for employers Chapter 20 paragraph 20.8 and Property FBT gift cards.

Thanks

KylieS

Re: ETP cash payment

NateH — Thu, 12 Dec 2019 22:50:25 GMT

Hi ,

All that a Club may and can do is enshrined in its governing document. So whether or not they can set aside part of the gratuity received from members at the end of the year to pay staff retiring after 10 years of service as an incentive to stay on will depend on whether it is allowed by the governing document. If the governing document is silent on the issue, then this wouldn't be allowed.

If the governing document allows it, then there may also be PAYG-W implications on the payment (assuming it is part of an ETP).

Hope this helps! Thanks, NateH

Record Keeping for Minor benefits under $300

NoTaxingIdea — Wed, 11 Dec 2019 05:32:34 GMT

What records need to be kept when giving minor benefits under $300 per year, to a staff member and their associate.

For example I would like to give a staff member a gift card of $250 to a place of their chosing and another gift card (able to be used at multple locations) to their partner. Do I need to record the names of each person a minor benefit is given too? Or just keep the original receipt. This is a one of Christmas gift idea.

We are trading as a not for profit, incorporated association, early childhood business that receives partial funding from governement and fees from parents.

Re: Donation receipt entity name

KWinter — Wed, 11 Dec 2019 05:14:14 GMT

Hi Kylie,

Thank you very much for the response. That covers everything I needed to know.

Thanks,

Kyle

Re: Donations to non DGR (but NFP) entity

NateH — Wed, 11 Dec 2019 03:40:45 GMT

Hi ,

We sent your question through to a specialist area to get an answer for you. We'll get back to you soon

Thanks, NateH

Re: ETP cash payment

NateH — Wed, 11 Dec 2019 03:14:41 GMT

Hi ,

Thanks for getting in touch. We've sent your question off to a specialist area to get an answer for you and we'll be in touch soon.

Thanks, NateH

Re: Fringe benefit admin queries for not-for-profit organisations

NateH — Wed, 11 Dec 2019 00:41:42 GMT

Hi ,

Thanks for getting in touch, we have sent your question off to a specialist area to have a look at and we'll get back to you soon

Thanks, NateH

Re: Tax

NateH — Tue, 10 Dec 2019 23:46:15 GMT

Hi ,

Thanks for getting in touch. We have escalated your question off to a specialist area to get an answer for you. We'll get back to you soon

Thanks, NateH

Re: Hobby or business?

DuncanS — Fri, 06 Dec 2019 07:51:33 GMT

I would suggest the activity is a business due to the regularity.

The pensioner may need to get a ABN and invoice you.

If a ABN cannot be obtained then he would be a employee.

The ATO has a employee/contractor tool.

As macfanboy mentions. the pension can reduce by 50 cents in the $ where income exceeds the lower limit.

Duncan

Re: Hobby or business?

macfanboy — Fri, 06 Dec 2019 05:06:34 GMT

You are employing him, and he is getting paid therefore it is income that needs to be declared.

He wouldn't do it for free and expects to be paid, even a small amount.

You would also be liable for Superanuation as he will receive more than $450 per month

https://www.ato.gov.au/Business/Super-for-employers/Working-out-if-you-have-to-pay-super/

In regards effecting his pension a quick Google search shows :

Once income exceeds $174 a fortnight the pension reduces by $0.50 for every additional dollar earned. From 20 September 2019 a pensioner couple could earn $308 a fortnight combined and still be eligible for the full pension of $1407.00 a fortnight, including all supplements.

So if he has a partner who is receiving a pension and not working you could pay him $152 per week before it effects his pension, else $87 per week.

Hobby or business?

LeSouef — Fri, 06 Dec 2019 04:03:34 GMT

Our sports club has a pensioner who is interested in helping out. He will maintain our facilities and grounds, more or less on a daily basis. However, he asks for some compensation to cover incidental expenditures and personal costs. He is worried though he might have to declare any recompense as income, and that in turn will affect his pension. We are keen for him to help us out. Some days he may not be able to make it, and so long as he lets know we can find someone cover for those days. For him, this is an outing with a purpose. It gets him out of the house and allows him to do something he loves. He is not interested in expanding his volume of work. He is not asking for much, eg $170 per week for generally for mornings (say 3.5 hours), 7 days a week. Somtimes, the work goes into the afternoon, but the compensation will remain the same. In return, we would not vary his compensation. Is this a hobby or a business?

Re: Second Hand Goods

macfanboy — Thu, 05 Dec 2019 23:49:40 GMT

A sale of donated second-hand goods by a charitable institution, charitable fund, gift deductible entity or government school is generally GST-free provided there is no change in the original character of the goods

Second Hand Goods

TBD — Thu, 05 Dec 2019 08:53:39 GMT

Our NFP club is registered for GST. Is GST applicable to the sale of second hands goods for say $2200?

I recall second hand goods being exempt from GST.

Re: Gift from relatives

NateH — Thu, 05 Dec 2019 03:54:29 GMT

Hi ,

Any communications from him (email, texts) saying that it is a gift and not part of a business-like transaction would be sufficient.

Thanks, NateH

Donations to non DGR (but NFP) entity

PinkyT — Wed, 04 Dec 2019 03:25:09 GMT

The Business entity set up an "official" fundraising cause for NFP organisation (not DGR). Can these expenses be deductible for the business? If yes, how they shoud be categorised? (Donations?, Sponsorship?)

For e.g, setting up high school scholarships or fund-raising event for a local footy club.

Thanks.

PinkyT

ETP cash payment

peter1981 — Wed, 04 Dec 2019 00:06:11 GMT

Hi, we are a club and receive gratuities from members at the end of the year. Can we set aside part of that gratuity collected and use that to pay staff if they retire after 10 years of employment as an incentive for them to work with us longer?

Re: Donation receipt entity name

KylieS — Tue, 03 Dec 2019 02:11:52 GMT

Hi ,

Thanks for your patience and apologies for the mix up with information.

As a DGR you are not required to issue a receipt, but if you do you must include certain information. If you don't include the specified information in your receipts, your DGR endorsement may be revoked.

Your organisation name, The Enneagram Movement, must be on the donation receipt. The information you need to include is:

• The name of your organisation (an abbreviation will be acceptable where the full name of your organisation cannot be shown on the receipt – however if the abbreviation does not readily identify your organisations you may need to publish the abbreviation publicly, such as on your website);
• Your ABN;
• A note that the receipt is for a gift.

You may also include additional information such as:

• The amount of money donated;
• A description of the gift if it was property
• The date the gift was given

You may include a note that the donation was made as part of the ‘Enneagram Prison Project Australia’ campaign.

Ultimately, for a donation to be tax deductible, your organisation needs to have complete discretion in deciding how to use donations according to the best interests and purposes of the organisation. However, donors can indicate a preference (for example, that the donation preferably be used toward the prison initiative where possible) and you can acknowledge this on the receipt.

If you would appreciate further clarification, you can contact our NFP Advice line , Monday to Friday, 8am to 6pm AESDT.

You can also view our webpage on Receipts as well as Taxation Ruling 2005/13 which discusses the tax deductibility of gifts including where donors have made a preference to how the donation should be allocated.

KylieS

Fringe benefit admin queries for not-for-profit organisations

g4rsjlee — Mon, 02 Dec 2019 03:09:55 GMT

Hi,

It would be greatly appreciated if we could have ATO’s feedback on our queries listed below.

We are currently ACNC endorsed non-profit organization, a church organization.

We have a few admin questions regarding fringe benefits tax for not-for-profit organizations to pay our ‘, religious practitioners’.

It is recommended to us by the union (where our church group belongs to) to have 50:50 split between wage and fringe benefits.
However, considering the amount our church can afford to pay our religious workers we have deemed 40:60 wage and FB would be more appropriate.

40% wage would include such expenses as donation and offerings which would not be considered as expense fringe benefit.

Noting that religious workers would have no maximum limit expense payment fringe benefits, I presume that there would be no risk or possible tax issues for such treatment.

Could you please confirm? Or advise us possible issues, if there is any?

Could you please confirm if we would also need to classify or pay expense benefits to our religious practitioners per different categories?

Our understanding is that as long as they are expense payments, we won’t need to classify expenses or define categories of payments.
Is our understanding correct?

Moreover, could you please confirm even personal entertainment and shopping for religious practitioners can be defined as expense payment fringe benefit for religious practitioners?

Our church is planning to pay our religious practitioners into two different accounts owned by the employees. i.e., one account for wage and the other one for fringe benefits.

And at the end of each year, say 30th of June, we would like to calculate the cash balance remaining in the account for fringe benefit and report as wages.
Could you please confirm if the above administration methodology would be acceptable by the ATO?

Or if we open a new church’s bank account and pay religious workers fringe benefits to the church’s account and give employees a card to use for their expense payments, are we correct in thinking that the remaining cash balance would be the church’s cash asset and therefore the employees would not be obliged to report as wages?
Are there any restrictions for such fringe benefit cash accounts? As long as employees have documents to support cash transfers, can we allow the employees to transfer cash to other accounts? Eg, rent payments to real estate agents.
In case of an audit, what sort of documents would the employees be required to provide in relation to fringe benefits?

Eg, if the employees used the cheque card to pay for their expenses as fringe benefits, would they be required to keep all the invoices for 60% fringe benefit payments?

Thank you

Tax

peter1981 — Mon, 02 Dec 2019 00:38:53 GMT

Can you please advise on what the income tax implications regarding a cash payment (outside payroll) or gift voucher payment being made to a member of staff who is retiring the company. We are a public company limited by guarantee. We do not receive an FBT exemption. We are not a public benevolent Institution.

thank you.

Re: Gift from relatives

Phuongngan — Sun, 01 Dec 2019 22:06:33 GMT

Do you know how I can prove it is a genuine gift?

Re: Gift from relatives

macfanboy — Sun, 01 Dec 2019 21:19:47 GMT

As long as it is a genuine gift and not a payment then it is tax free.

Gift from relatives

Phuongngan — Sun, 01 Dec 2019 06:33:36 GMT

Hi!

My uncle sold his property and give me $200,000 as a gift via a bank cheque. Do I need to pay individual tax for this amount of money?

Thank you!

Re: Tax Returns for Body Corporates

KylieS — Thu, 28 Nov 2019 01:02:21 GMT

Hi ,

Thanks for your question.

There are some different scenarios, check out the response we have provided previously.

Thank s

KylieS

Re: Donation receipt entity name

KylieS — Wed, 27 Nov 2019 01:58:48 GMT

Hi KWinter,

I have provided you with a response that is not applicable to you. I will get the correct information and edit that response.

Apologies

KylieS

Re: Donation receipt entity name

KWinter — Tue, 26 Nov 2019 04:08:56 GMT

Hi Kylie,

Thank you for the response.

I'm not sure I completely understand as I don't believe our fundraiser will fall into the 'providing entertainment' category. It will be an online crowdfunding campaign whereby the community will be donating to our charity. As we have DGR status, these donations should qualify for a tax deduction by the donators.

After reading the ATO requirements for DGR fundraising receipts, we need to include the following:

Name
ABN
Note that the receipt is for a gift
Amount
Date

My question is, for our receipts, can I use our registered business name of 'Enneagram Prison Project Australia' or do I need to use our legal entity name of 'The Enneagram Movement'?

Thanks,

Kyle

Re: Donation receipt entity name

KylieS — Mon, 25 Nov 2019 05:58:21 GMT

Hi ,

We will look into this one for you and get back to you as soon as we can.

KylieS

Tax Returns for Body Corporates

Franley-Place — Mon, 25 Nov 2019 04:17:23 GMT

Does a Body Corporate need to lodge a tax return if no income other than levies. ABN required for telephone line.

Re: Supplier Not Charging GST

evonmispets — Mon, 25 Nov 2019 00:12:26 GMT

It will be government fault

Re: stp

RachaelB — Fri, 22 Nov 2019 04:34:36 GMT

Hi ,

Thanks for your question, Brendan!

There isn't really any record of employee "status" with the ATO - if your withholding obligation has ceased because all of your payees are not subject to PAYG Withholding, then you should cancel your PAYGW role.

If this secretary is a contractor, you may still be able to report payments made through Single Touch Payroll - depending on the nature of those payments. You should have a look at what you need to report through STP for some additional information on payments made to contractors.

I hope this helps, but please let me know if you have any other questions.

Thanks,

Rachael B.

Re: Not for profit payments, to a religious practitioner, after resignation.

KylieS — Thu, 21 Nov 2019 03:45:42 GMT

Hi ,

It depends on your employment agreement.

It is possible for an ETP to be paid at the direction of the recipient (deferred). But this runs the risk of being paid more than 12 months after the termination.

This information may assist regarding employment termination payments.

To give you a more accurate answer and to to get more information from you we suggest you contact our early engagement area.

Thanks

KylieS

Re: Supplier Not Charging GST

Biggiesmalls — Tue, 19 Nov 2019 08:26:35 GMT

No, liability is on the person doing the invoice. There could be reasons they aren't required to register. However if you don't feel comfortable with the way your supplier operates you could consider getting a new supplier? You can also report tax evasion https://www.ato.gov.au/About-ATO/Contact-us/Report-fraud,-tax-evasion,-a-planning-scheme-or-unpaid-super/

Supplier Not Charging GST

Penglert — Tue, 19 Nov 2019 05:15:07 GMT

Good Afternoon

We have a supplier that is not registered for GST but we have paid more than 75K since 1/7/19.

They claim their business is trading as a foundation and is a charity.

They are not listed in the ACNC Register.

On the ABN lookup - they are not entitled to receive tax deductible gifts and are not registered for GST.

Question - who will be at fault if we continue to pay them GST Free if they were to get audited by the ATO and is there any comeback on us?

stp

bginnivan — Mon, 18 Nov 2019 05:58:03 GMT

Hi do i need stp for our landare group? it has one secretary that we pay occasionly on per hour basis. years ago she was an employee but not in last few years. how do i get her status changed?

Brendan Ginnivan

Re: religious body and FBT for religious practitioner

KylieS — Mon, 18 Nov 2019 01:01:21 GMT

Hi ,

Thanks for your patience.

In respect of FBT all benefits are exempt, provided the employer is a registered religious institution and the employee is being rewarded for performing ‘pastoral duties’ then there is no financial value limit.

The only requirement is that it is a benefit (not simply a payment of cash which would be salary) and that records are kept. This is usually accomplished through the use of an employee credit card paid for by the employer. As long as the card remains in debit and does not give ‘cash advances’ then all is exempt.

This is some extra information that might be of assistance in the future;
Exempt benefits--employees of religious institutions

Where:
(a) the employer of an employee is a registered religious institution; and
(b) the employee is a religious practitioner; and
(c) a benefit is provided to, or to a spouse or a child of, the employee; and
(d) the benefit is not provided principally in respect of duties of the employee other than:
(i) any pastoral duties; or
(ii) any other duties or activities that are directly related to the practice, study, teaching or propagation of religious beliefs; the benefit is an exempt benefit.

Thanks

KylieS

Re: Superannuation Guarantee

DuncanS — Sun, 17 Nov 2019 10:44:47 GMT

Firstly, the situation should be fixed ASAP.

With unpaid super, the ATO relies on aggrieved employees reporting unpaid Super.

You may wish to get an undertaking from the current Committee that they would be be responsible for any ATO issues.

The facts in your case indicate that Super was paid and did end up in the SMSF.

This case may be somewhat difficult to handle with diplomacy but I understand your concerns as a new Committee Member.

When I review an Association or a small business, I undertake a BAS Reconciliation.

I also state in the Notes to the Accounts whether a Salary/Salaries were paid and that SG obligations have been met (or not).

Duncan

Re: Superannuation Guarantee

Jaylow — Sun, 17 Nov 2019 08:40:54 GMT

Thanks Duncan,

Have used the tool. No invoices, no ABN. Employment contract specifies person concerned is required to attend office in person at prescribed times each week. He is covered by worker compo insurance policy and legal insurance if his actions in performing his job tasks cause 3rd party injury.

The annual review of charity finances is very light and focuses on internal processes. Auditor/Reviewer has no expertise in tax law. Line entry in books is one of "Salary and Super" and is reported as such in Financial Reports to AGM. But total payment goes to employee who I understand pays an amount into his own SMSF.

A previous part-time employee had salary and SG paid according to rules and also PAYG.

all advice welcome. This has been going on for several years.

Re: Superannuation Guarantee

DuncanS — Sun, 17 Nov 2019 02:50:57 GMT

The ATO has a employee/contractor tool.

It is important to determine whether the person is an employee or contractor.

Sometimes it is somewhat grey.

Has the person supplied complying Tax Invoices/Invoices (with a ABN)?

My understanding is that a small charity has a Review (or audit) conducted following the end of the FY and the AGM is held. I would be speaking to the Reviewer.

Let us know how you go.

Duncan

Re: pension age and how to claim

macfanboy — Thu, 14 Nov 2019 07:17:09 GMT

Not really anything to do with the ATO and taxation.

However, let me google that for you........

From 1 January 1954 to 30 June 1955 = 66 years

you can register your intent to apply for the Age Pension 13 weeks before you turn 65.
you don't need all required documentation just to get your application under way.
you can apply via the Centrelink website, over the phone (call 132 300) or in person at your local Centrelink office.
you can track your claim online.

Superannuation Guarantee

Jaylow — Thu, 14 Nov 2019 06:27:22 GMT

I'm considering joining a committee of a small registered charity. I've checked out the books. It has one part-time employee engaged as a contractor for his services. Paid about 30,000 a year plus 9.5% for super. About $32850 pa all up. has been this way for about 4 years. Trouble is the super payments have been going direct to him and he has contributed the $2850 a year to his SMSF.

By my understanding, the charity should report this situation. and is required to pay the 9% later increased to 9.5% tof the total amounts previously paid to the employee (eg last FY $32850), backdated to when employment started, plus 10% interest, plus some penalties. This is a considerable amount of money, that is going to end up in the employees pocket..

When I raised this, I was told employee was a contractor and what was being done was correct. There was no need to report this to the ATO. My other concern is that, there may not be sufficient funds to cover what I think is owed and that the committee office bearers arlikely to be personally liable for the debt.

Any advice would be most welcome.

pension age and how to claim

Drifter1954 — Thu, 14 Nov 2019 05:49:17 GMT

I was born in September 1954 and want to know when I can claim the pension and where do I do that online or at a Centrelink office.

Re: religious body and FBT for religious practitioner

KylieS — Thu, 14 Nov 2019 04:48:11 GMT

Hi,

Thanks for your question, we are going to look into it for you and will get back to you as soon as possible.

Thanks

KylieS

Donation receipt entity name

KWinter — Thu, 14 Nov 2019 02:04:45 GMT

Hi,

I'm running a charity that is registered with the ACNC and has DGR status. The registration is under the name The Enneagram Movement. We are looking to run a fundraising campaign for an initiative called Enneagram Prison Project Australia. So The Enneagram Movement will be the legal entity supporting the Enneagram Prison Project Australia initiative. We have registered the business name "Enneagram Prison Project Australia" under our ABN.

My question is in relation to receipts for donations. Can we simply use the name "Enneagram Prison Project Australia" on our receipts, or will we need to use the legal entity name of The Enneagram Movement?

Kind regards,

Kyle

religious body and FBT for religious practitioner

willemtwee — Mon, 11 Nov 2019 08:03:05 GMT

Hi. I have read all examples and rules relating to the FBT for religious organisations and practitioners. The situation at hand satisfies all criteria. However my question relates to the extent of what are allowed as FBT tax exempt payments made to the pastor

Are payments made to the pastor all exempt? We keep assuming the man works full time as a religious and qualified person. Like if a credit card was provided to him could any and all costs he incurs in everyday life be regarded as FBT payments to him without tax? And holidays and associated travel is also permissable? (I saw one example where it was mentioned)

If so then such a person could be set up with a stipend of just under the taxfree limit and paid eveything else as an FBT payment. What is the intent of the law on this?

Re: GST for Clubs,

TaxedoMask — Fri, 08 Nov 2019 04:23:25 GMT

If the Golf club is a registered charity or a deductible gift entity - then a GST exemption may apply. If not, then GST will apply to such fundraising activies.

Please note that if you are running a raffle - to ensure it complies with the relevant state/territory's gaming laws.

GST for Clubs,

TBD — Fri, 08 Nov 2019 00:13:53 GMT

Does a not for profit Golf Club which is registered for GST, need to account for GST on items such as raffles and other fund raising activities such as competitions for example for "nearest the pin" .

Members may pay an extra $1 each time they play in addition to the Green Fees to participate in these extra activities?

Re: Not for profit payments, to a religious practitioner, after resignation.

CityGates — Thu, 07 Nov 2019 10:53:54 GMT

Many thanks Jodie, look forward to hearing your team's call.