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NPCG(I'm new)I'm new
8 Feb 2022

I am the new treasurer for a small community not-for-profit. We lease land from the local council and share water and electricity utility services with neighbouring not-for-profits. The council adds 10% for GST onto the share of our bills. This means we are paying GST twice for the electricity bill and get 10% added to the water bill that otherwise would be GST free. We are not registered for GTS purposes. I understand a tenant can get GST added for charges passed through. 1. does this apply to not for profits and 2. can the council double the GST if the amount passed through already includes GST?

2,632 views
1 replies
2,632 views
1 replies

Most helpful response

Most helpful reply

CaroATO(Community Support)Community Support
9 Feb 2022

Hi @NPCG,


The on-charging of the water and electricity bill does attract GST because it's a service your landlord, local council is providing. Your landlord might claim the GST credits on their bills and collect it on the not-for-profit bills.


A similar question has been asked on this forum. You can check out the answer here.

All replies

Most helpful reply

CaroATO(Community Support)Community Support
9 Feb 2022

Hi @NPCG,


The on-charging of the water and electricity bill does attract GST because it's a service your landlord, local council is providing. Your landlord might claim the GST credits on their bills and collect it on the not-for-profit bills.


A similar question has been asked on this forum. You can check out the answer here.

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GST: can the local government add 10% for GST onto water and electricity accounts for a NFP tenant?? | ATO Community