GST on Income
Tax Rates
GST Free Income – used for Membership fees, scouting activities
GST on Income – some activities, maybe hall hire
BAS Excluded – these are for items not reported on the BAS
Input Taxed - do not use
Transaction Types
Most of the
supplies (that is the provision of Scouting to our youth members) made by the
Association will be GST free. This is
because the supplies made to Scouts such as the provision of Scouting
activities, camps, etc; is less
than 50% of the GST inclusive market value of the supply due to the Scouts Qld
being a largely volunteer organisation and therefore the value of what we
provide outweigh the costs charged. GST on transactions between Formations should be allocated as below.
Registration/Membership Fees – GST
Free Income
Camps – GST Free Income
Activities – GST Free Income
Donations – BAS Excluded
Containers for Change – GST on Income - you
should be receiving a payment advice with each deposit; these show the amount
includes GST.
Sponsorship – if you are required to provide some type of
benefit (e.g. advertising) in return for the sponsorship then
GST on Income applies.
Fundraising – GST on
Income, if claiming GST on expenses, otherwise GST Free.
Grants – GST Free, as these are co-ordinated
through State Office. See the
Fact Sheet on Accounting for Grants
Den Hire & Campsite Fees – GST Free or GST on Income. If the amount charged is less
than 50% of the GST-inclusive market
value this supply may be GST Free. If you choose to make these
fees GST Free you should regularly compare the charges with similar fees in
your area.
Activities relying heavily
on third party providers – GST on Income. If you organise a Formation activity that relies
largely on external paid providers, such as bowling or cinema, and you ask
parents to reimburse the full commercial rate, you can only claim these GST
credits on the expenses if you also charge GST on the income. This is because the charge is more than 75% of the cost to supply.
Uniform & Badge Sales – GST
on Income.
Play On! Vouchers – BAS Excluded, as this is a payment method rather than income. Membership or Activity charge that the voucher is applied against reports the income.
How to
The easiest way to ensure that the GST is correctly
allocated is to have a general ledger account set up for each transaction type and
set the correct tax rate in the account settings in the chart of accounts.