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Help Sheet

Special Fundraising Events and the GST

Fundraising events - How do the new provisions work?

Section 40-160 has been introduced into the GST Act. This section provides that a supply will be input taxed if all of the following requirements are satisfied:

  • The supplier is a charitable, institution, trustee of a charitable fund or gift deductible entity.
  • The supply is made in connection with a fund-raising event
  • The supplier chooses to have all supplies that it makes in connection with the event treated as input taxed; and
  • The event is referred to in the supplier's records as an event that is treated as input taxed.

Fund-raising event is defined in section 40-165. An organisation that satisfies the above requirements can treat an event as input taxed if it is:

  • An event that is conducted for the purpose of fundraising and it does not form any part of a series or regular run of like or similar events and is any of the following
  • A fete, ball, gala show, dinner, performance or similar event
  • An event comprising the sale of goods provided that each sale is for consideration that does not exceed $20 or such other amount as the regulations specify and selling those goods is not a normal part of the supplier's business
  • An event that the Commissioner decides, on application by the supplier in writing, to be a fundraising event.

Please note an event that involves the sale of goods as described above cannot involve the sale of alcoholic beverages or tobacco products.

The Commissioner is unable to decide that an event is a fundraising event unless he is satisfied that the organisation is not in the business of conducting such events and the proceeds from conducting the event are for the direct benefit of the supplier's charitable or non-profit purposes.

It is expected that the Commissioner will make a determination in the near future about the frequency with which events can be held without forming any part of a series or regular run of like or similar events.

Where an organisation chooses to apply the provisions in this section they will not be entitled to claim input tax credits for any acquisitions in relation to the event and they will not be required to charge GST on the supplies they make. The organisation will not be entitled to claim input tax credits regardless of whether the supply would have been GST-free had they not made they election.

Our Community Pty Ltd   www.ourcommunity.com.au   ABN 24 094 608 705
National Headquarters: 51 Stanley St, West Melbourne Victoria 3003 Australia
(PO Box 354 North Melbourne 3051 Victoria)
Telephone (03) 9320 6800   Email service@ourcommunity.com.au