For the first time it looks like we will exceed a turnover of $150,000 this year. The majority comes from grants. I assume that the grants are counted as 'income', therefore we will have to register for GST? A minimal amount of the $150,000 comes from sales.
Hi @NFAVic,
If you’re a not‑for‑profit organisation, you must register for GST if your current or projected GST turnover meets or exceeds $150,000.
When working out GST turnover, grants may be included, but this depends on their nature. Grants that are consideration for a supply (for example, delivering services or outcomes) are included in GST turnover. Grants that are genuine gifts aren’t.
You need to consider both:
- your current GST turnover (this month and the previous 11 months), and
- your projected GST turnover (this month and the next 11 months).
If either meets or exceeds the $150,000 threshold, you must register for GST.
Once registered, you’re required to remit GST on taxable supplies, and you may be able to claim GST credits on eligible purchases.
You can register through ATO online services for business if you already have an ABN.
All replies
Hi @NFAVic,
If you’re a not‑for‑profit organisation, you must register for GST if your current or projected GST turnover meets or exceeds $150,000.
When working out GST turnover, grants may be included, but this depends on their nature. Grants that are consideration for a supply (for example, delivering services or outcomes) are included in GST turnover. Grants that are genuine gifts aren’t.
You need to consider both:
- your current GST turnover (this month and the previous 11 months), and
- your projected GST turnover (this month and the next 11 months).
If either meets or exceeds the $150,000 threshold, you must register for GST.
Once registered, you’re required to remit GST on taxable supplies, and you may be able to claim GST credits on eligible purchases.
You can register through ATO online services for business if you already have an ABN.
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