All Not for profit tax questions posts

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.

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!

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

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: 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

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?

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: 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

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: 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: 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?

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

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: 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

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: 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.

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: 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.

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

JodieH — Thu, 07 Nov 2019 05:28:32 GMT

Hi ,

Thanks for getting in touch!

We're checking information with a specialist area about the situation you've described and we'll get back to you with further information soon.

Thanks, JodieH.

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

CityGates — Tue, 05 Nov 2019 07:05:33 GMT

Scenario: the church is an ACNC registered not for profit religious institution & the minister is credentialled.

Question: if I was employed as a church minister, resigned voluntarily, provided no further work, was promptly offered a sizeable gratuity payment ... would I pay tax on the gratuity 1. as if I was still employed as a minister (accessing non-reportable FBT) or 2. as if it was an employee termination payment?

Thanks for any guidance.

Re: Amateur sports coach

Henry15 — Mon, 04 Nov 2019 06:20:44 GMT

wrote:

Hi

Welcome to our Community!

The guide has provided is very helpful. It would need to be determined if the coach/es are considered employees, independent contractors or volunteers as this will affect the tax treatment of the payments. You can find information to help determine their employment status and how the payments are treated in the Employee and other workers section of the guide.

If you have further questions, you can phone our NFP area on 1300-130-248 between 8am - 6pm, Monday to Friday. If the coaches have further questions regarding income they must declare, they can phone us on 13 28 61 between 8am - 6pm, Monday to Friday.

Thanks, JodieH.

It would need to be determined if the coach/es are considered employees, independent contractors or volunteers as this will affect the tax treatment of the payments.

Re: Intern honorarium

Realitybites — Mon, 04 Nov 2019 04:58:41 GMT

The ATO has a page relating specifically to honorarium which can be found as below:

https://www.ato.gov.au/Non-profit/Your-workers/Your-volunteers/Paying-volunteers/Honorariums/

Without further information as to the activities the intern will be undertaking, I would not be able to provide you any guidance, however this would be an ideal place to start.

To clear up some areas of this for you, GST, PAYG and SGC are not involved in honorarium payments, however it may have tax implications (income tax) to the receipient.

Re: Uninc. Association non-profit seeking advice on ABN/TFN

MarkA — Mon, 04 Nov 2019 01:53:31 GMT

A hearty welcome to our community we do like to see new posts.

If you go to our website under TFN and ABN information for savings accounts and investments. See Taxable non-profit organisations.You will notice that generally non-profit organisations only need to lodge a tax return and pay tax if their taxable income exceeds $416 in any one financial year. Also see What to include in your business's assessable income this should help as to what to include.

I hope this points you in the right direction starting out.

Thanks for the queries.
Kind regards
MarkA

Intern honorarium

1Church — Mon, 04 Nov 2019 01:04:52 GMT

We have an intern coming in to work with our youth outreach. The person will be volunteering. We would like to pay a monthly honoraium and/or pay for education expense.

What are the implications for assessable income. GST, PAYG, SGC? An honorarium is a very grey area to me.

Re: How do I register DGR deductable gifts?

KylieS — Mon, 04 Nov 2019 00:28:19 GMT

Hey ,

Thanks for pointing this out, we will correct our information.

Looks like the question is in the heading!

Thanks again.

KylieS

Re: How do I register DGR deductable gifts?

macfanboy — Fri, 01 Nov 2019 07:32:03 GMT

Strange how you never really answered their question and then deleted their question.....and then awarded your answer best answer...

I'm beginning to understand 'Anonymous" reaction and reason he left this forum.

Re: How do I register DGR deductable gifts?

NateH — Fri, 01 Nov 2019 07:56:42 GMT

Hi ,

Check out this page on How to determine if you eligible for DGR endorsement and then how to apply for DGR endorsement.

Hope this answers your quesiton.

KylieS

Uninc. Association non-profit seeking advice on ABN/TFN

AlexEnergy — Thu, 31 Oct 2019 03:12:06 GMT

Hello,

I am running a small non-profit at my university and we want an ABN/TFN so we can get a business bank account. We are an unincorporated association.

If I apply for an ABN/TFN, what obligations do I need to meet, what are the risks? We have no employees (all volunteers) and do not plan on using GST. Our income will be through corporate sponsorships (~20k per/annum).

Follow-up question. Is corporate sponsorship considered business income? Is selling tickets to cover the cost of an event also considered business income?

Thank you for your help.

How do I register DGR deductable gifts?

46216dgr — Thu, 31 Oct 2019 03:09:42 GMT

Re: NFP (Scientific research institution)- Is financial award to researcher taxable?

TaxedoMask — Wed, 30 Oct 2019 00:56:47 GMT

For the recipient

Generally speaking such prizes are not assessable income.

see here

For the Association

Would depend on whether it is an exempt organisation or NFP subject to mutuality.

If it is an exempt organisation, it does not need to lodge a tax return.
If it is a mutual, then more likely than not a non-deductible expense. Would require further investigation.

NFP (Scientific research institution)- Is financial award to researcher taxable?

Hayley123 — Tue, 29 Oct 2019 11:02:27 GMT

The Association is a Scientific research institute, they want to offer financial award (for eg: $5,000) to their reseacher for being 'best author'. Does the reseacher need to report this as their assessable income and pay tax on it?

Also, is there any tax implications or special reporting that the Association need to report?

Re: Implications of NFP organisation offering cash prizes for Competitions

RachaelB — Mon, 28 Oct 2019 02:26:50 GMT

Hi ,

Thanks for getting in touch!

This is quite a tricky question, as there are a lot of variables at play here!

Generally speaking, cash prizes are not assessable income so the winner of the competition is not likely to incur any additional taxes on that prize regardless.

However, depending on the nature of the art competition (e.g. as a fundraising event), as well as the DGR & GST status of the NFP organisation, the tax implications for the organisation may differ. If the organisation is a DGR, they may not have income tax reporting obligations, but they could still be required to pay GST on the amounts that they've received.

You may find it best to have a look through our guide to gifts and fundraising for additional information.

If you have additional questions after reviewing this guide, please let me know.

Thanks,

Rachael B.

Implications of NFP organisation offering cash prizes for Competitions

YMAC — Wed, 23 Oct 2019 03:59:37 GMT

Hi there,

We would like to know if we offer a cash prize of $3,000 to the winner of an art competition we are holding.

What tax and reporting implications are there for the NFP and for the winner of the competition?

Thanks

Re: I need to obtain a nat 2943 form to update our ABN details

NateH — Mon, 07 Oct 2019 23:37:20 GMT

Hi ,

There are a few ways you can update your business details. One of them is with the Change of registration details form (NAT 2943) which you can order the using our online publication ordering service for business.

You can also update your details:

online through Australian Business Register or Business Portal
by phone – if you're an authorised contact for the business, phone us on the business enquiries line (not applicable for adding or updating public officer details)
through your registered tax agent or BAS agent.

Hope this helps! Thanks, NateH

Re: Period of review in the Income Tax Status Review Worksheet for self-assessing NP organizations

ChrisR — Fri, 04 Oct 2019 01:49:52 GMT

Thanks for your question.

Not-for-profit (NFP) organisations should review their income tax status on a regular basis. We recommend that you do a review once a year or when there is a major change to your organisation's structure or activities.

For more information about this, refer to the review your tax status page on our website.

If you only need to review your organisation's tax status once a year, the timeframe that you review depends on when you do the review. You may conduct the review after the year has finished, before it has started or during the year. In turn, the period of review on the Worksheet is meant to capture the period in which the self-review/determination was undertaken and is applicable.

As it is self-assessing, it is up to your organisation as to when you do the review. There are different types of income tax exempt organisations and the nature of your organisation's activities may influence when the best time will be.

As you will be aware, when you have completed the income tax status review worksheet for self-assessing non-profit organisations form, you should keep it with your organisation’s other records. You don't need to submit it to us unless we ask for it.

Hope this helps.

Thanks,

ChrisR

Re: I need to obtain a nat 2943 form to update our ABN details

keith1 — Thu, 03 Oct 2019 07:40:14 GMT

I need to obtain a nat 2943 form to update our ABN details

keith1 — Thu, 03 Oct 2019 07:38:45 GMT

Period of review in the Income Tax Status Review Worksheet for self-assessing NP organizations

AntonAus — Mon, 30 Sep 2019 05:52:58 GMT

Dear community, it is unclear if the Period of Review From/To dates are meant to be:

- in the past (assessing your organisation’s past activities)
OR
- in the future (assessing your organisation’s planned activities).

These fields are in the Income Tax Status Review Worksheet for self-assessing non profit organisations

Many thanks,
Anton

Re: GST for not for profit organisation

JodieH — Mon, 30 Sep 2019 05:16:22 GMT

Hi @lany42atoc,

Welcome to our Community!

When completing GST labels in your BAS, the term total sales (G1) includes all forms of supply or goods your business provides. It may not necessarily relate to the sale of an item or produce, but income producing activities which GST has been charged on.

Capital and non-capital purchases relate to items or expenses purchased which are using in running the business and have GST included in the expense. Capital purchases (G10) are capital items such as machinery, computers, cars, land and buildings (also referred to plant and equipment items). Non-capital purchases (G11) is trading stock and normal running expenses, such as stationery, repairs, equipment rentals or leases.

We have a helpful guide on our website which provides information about completing your BAS which details what to report and what not to report at each label for GST on your BAS.

If you have further queries about completing the labels on your BAS, you can contact our business area to speak with an operator.

Thanks, JodieH.

GST for not for profit organisation

Iany42atoc — Thu, 26 Sep 2019 11:54:28 GMT

I'm about to do my first BAS for a NFP organisation. We receive grants and donations. We also purchase equipment for our work and food and other items for distribution. I understand that the grants we receive have a GST component, whereas donations do not. Items purchased for distribution to clients, as well as equipment, office consumables etc for use in providing our service usually have GST as part of the price we pay. How do the various fields on the BAS form e.g G1, G10 and G11 relate to those activities? It's confusing to see G1 described as total sales, when in the "normal" understanding we don't actually have sales as such.

Re: Travel to a Not-For Profit AGM

KylieS — Mon, 23 Sep 2019 01:46:53 GMT

Hi ,

Thanks for your question.

A deduction is an expenses that you can claim, that is directly relate to earning your income. As you are not earning income form the organisation you would not be able to claim any deductions.

Thanks

KylieS

Re: Tax deductibility of Christmas cards seeking donations

macfanboy — Tue, 24 Sep 2019 04:40:58 GMT

No because they are receiving something for their donation.

Tax deductibility of Christmas cards seeking donations

cecilyneil — Sun, 22 Sep 2019 23:36:21 GMT

I am a member of a small NFP with DGR status. We wish to sell Christmas cards charging a donation of $8 per card or $20 per 3, the donations going to the provision of sanitary toilets in one of our overseas project sites. I would like to know if these purchases are tax deductible so far as the buyer is concerned.

Travel to a Not-For Profit AGM

Topaziel — Thu, 19 Sep 2019 07:14:34 GMT

Dear all,

Thank you for taking the time to answer my question!

I am a private individual who recently joined a Not-Fot-Proft as a member.

The NFP organisation is registered as a charity with the Australian Charities and Not-for-profits Commission (ACNC), and has 'public benevolent institution' status.

Will interstate travel to the AGM of this organisation be tax-deductible?

Thanks again!

Re: Long Service leave for casual to part time

ChrisR — Wed, 18 Sep 2019 00:09:14 GMT

Welcome to our Community.

While we can provide advice about how to tax long service leave and whether super is payable on it, we can't provide any advice about how to calculate it. We recommend that you check out the Fair Work Ombudsman website.

If you are not sure where to go on their website, you can check out the long service leave page.

Generally most employees' entitlement to long service leave comes from long service leave laws in each state or territory. However this may not be the case for your employee as they started in 2006.

The second link contains links to the relevant state and territory long service agencies as well as some information about pre-modern awards and portable long service leave. You may need to call the Fair Work Ombudsman for assistance.

Sorry we couldn't be more helpful.

Thanks,

ChrisR

Long Service leave for casual to part time

sandy1 — Mon, 16 Sep 2019 04:45:03 GMT

Can you please advise how to calcualte LSL for an employee who was casual then, part time with inconsistent hours?

if there is a break in service during the casaul employement will that be counted as continous service for LSL calcualtion? employee joined the organisation in 2006.

Regards

Re: Not-for-profit (Church) repaying member's lending loans without affecting member's taxable in...

RachaelB — Thu, 12 Sep 2019 00:55:33 GMT

Hi ,

Thanks for your reply, Nay!

If the church is registered as a company (incorporated entity), then setting things up in the way that you've described may mean that the loan will be considered as a liability for the church to pay. You can see this thread about loans made to companies and how the repayments from the company may be treated.

However, because we can only provide you with general information I really can't give you any advice on how to structure it. You should speak to a registered tax professional or refer back to the additional guidance link on my last post.

You do need to take care to set things up correctly, as even if the church does not have any clause about profits in the constituent documents, it is a requirement that non profit organisations do not distribute profits back to their members. Whatever you end up doing needs to be clearly documented so that there is no confusion about the nature of the funds being paid back to the members.

I hope this has been helpful.

Thanks,

Rachael B.

Re: Not-for-profit (Church) repaying member's lending loans without affecting member's taxable in...

mgkbc-sa — Tue, 10 Sep 2019 02:36:32 GMT

Thank you for your reply Rachael,

As far as I know there is no such clause.."all profits must go back into the services the organisation provides and must not be distributed to members" in the governing documents. I think if I give you an example you might be able to help better.

For example, (the organistion can't borrow money from the bank due to being a church group/not for profit) so I borrow money of $50,000 from the bank as a personal loan. I lend (with no interests) that money to the church/organisation so that they have enough funds to purchase the property. My loan repayment is $800/month. The church/organisation recieves regular donations/collections/contributions of $1000-1500/month. The churhc/organisation pays me back $800/month. I repay my loan with that money.

The question is,

1. Can the organisation simply transfer money out from it's bank account to my bank account as a loan repayment?

2. If so, I recieve $800/month from the church/organisation. Do I have to pay tax on that $800/month money I recieve back?

I hope I explain it clear and I hope you can help again.

Regards,

Nay

Re: Not-for-profit (Church) repaying member's lending loans without affecting member's taxable in...

RachaelB — Tue, 10 Sep 2019 00:38:53 GMT

Hi ,

Thanks for your question!

The tricky thing about not for profit organisations is that generally speaking, all profits must go back into the services the organisation provides and must not be distributed to members. This is crucial to the registration of a not for profit organisation, and there should have been a clause detailing this within the governing documents.

If there is such a clause, then you may find it very difficult to pay back the lenders/members the money that was borrowed, unless it could be classified as a reimbursement. Having said that, if it was a reimbursement, then this could have Fringe Benefits Tax implications.

Because we can only provide you with general information here, you may need to seek additional guidance for your circumstances.

Hope this helps,

Rachael B.

Not-for-profit (Church) repaying member's lending loans without affecting member's taxable incomes?

mgkbc-sa — Fri, 06 Sep 2019 06:56:36 GMT

A church group having a savings of around $100,000 wants to purchase a $239,000 property. Members in the group are willing to seek personal loans and lend them to the church which the church will repay later. The church is incorporated, registered as Charitable Organization under ACNC and is Tax Concession Endorsed. How would the church take funds from member's personal loans or peer to peer lending to purchase that property and how would the church pays back the lenders/members so that those payments are not regarded as their taxable incomes by the ATO?

Re: Do I need to pay GST ?

RachaelB — Tue, 27 Aug 2019 06:00:40 GMT

Hi ,

Thanks for your question!

If you did not personally purchase these glasses from a seller overseas, then there will be no GST payable, because it is only applied on imported goods at the point of sale, such as if you purchased them from an online seller.

Hope this helps,

Rachael B.