GST Guidelines for Formations

GST Guidelines for Formations

1.                  For financial periods after 1 April 2026 only Formations registered as a GST Branch will be able to lodge an Activity Statement.

2.                All other Formations are required to update their Xero to remove the accounting for GST, which will simplify the processing of transactions as they will all be recorded as BAS excluded. Formations can continue to use the ABN for grant and banking purposes as an auspicee of Scouts Qld.

  

 

  3.             All Formations with an expected annual GST turnover of $150,000 will need to be registered as a GST Branch and also meet the requirements below.

   4.           Any other Formations that are not required to be registered due to turnover, but would like to be, must meet the following criteria:

            a.   They must use Xero and it must be up to date

            b.   They must be up to date with their Financial Returns

            c.   They must have their finances audited by a BAS or Tax Agent or a member of their committee is suitably qualified and will be the ATO contact person. The Auditor should be requested to review the GST transactions as part of the audit.

5.               All registered Formations are required to, and must be able to, lodge a BAS quarterly within the required time frame of 21 days from the end of the quarter. The parent entity is responsible for lodgment of the activity statement, but it can be prepared and lodged by either the parent entity or the GST branch. Any fines for late lodgment will be the responsibility of the Formation, which is currently $330 for each period of 28 days (or part thereof) that the return or statement is overdue, up to a maximum of $1,650.

6.              Any Formations wishing to register as a GST Branch should contact the Finance Manager to request an ATO Application Form, who will review the request based on the above criteria. All requests require time to lodged to and approved by the ATO.


The other significant change required immediately, is that transactions between Formations should not be treated as BAS excluded, therefore Formations registered as a GST Branch will need to charge GST on relevant sales e.g. merchandise, badges and uniforms.  As GST is not being reported as a single entity, each registered GST Formation needs to apply GST as per ATO guidelines for all external transactions.