Hi,
Hoping to get some advice...
I am currently running a program under my sole trader ABN - small part of my ABN income is consulting but a large part of my business is funded by government grants to run a non-profit program (all money to be spent on the grant $). I don't sell products - it's a consulting service.
I understand the grants are counted as 'income' for my sole trader business... however my 'income'/pay I would really get in the hand is likely around 70% of the value of the grant to run the program.
I am getting close to the GST threshold for my ABN and it has been suggested I apply for non-profit organisation for this aspect of my business as it doesn't make sense that this is income as it all needs to be spent on this non-profit project.
Setting up a non-profit looks very daunting. It really is a simple part of my business. Estimate approx 78k in non-profit grants. I don't have a lot for accounting and admin costs.
So my question is - do I register for GST (and how intensive and costly is the BAS process?!) and keep running the project under my sole trader business with the grants accounting for my business income or do I go through the process of setting up a non-profit?
Non-profit brings with it all the complications of members, committee, constitution etc?
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