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GST overview
Goods and services tax (GST) is a tax imposed on the sale, or supply, of a wide range of goods and services consumed in Australia.
In general, an organisation that is registered or required to be registered for GST:
- must pay GST to the Australian Taxation Office (ATO) on the taxable supplies it makes, and
- may claim input tax credits for GST included in the price of goods and services it buys, if the relevant requirements are satisfied
GST is generally payable at 10% of the value of a taxable supply unless special rules apply. In practice, a supplier will usually include GST in the price charged to the purchaser.
Note
Your organisation should seek legal or accounting advice on its GST obligations.
GST registration
An organisation is required to register for GST if it is carrying on an enterprise and its GST turnover meets the applicable registration threshold.
The registration threshold is:
- $150,000 for a not-for-profit organisation, and
- $75,000 for other organisations
The ATO has specific rules for calculating GST turnover. These rules consider the value of most supplies made, or likely to be made, over relevant 12-month periods.
Calculating GST turnover
For guidance on calculating GST turnover, see the ATO webpage on GST registration for not-for-profit organisations.
GST turnover below $150,000
A not-for-profit organisation with GST turnover below the $150,000 threshold is generally not required to register for GST. However, it may choose to register voluntarily if it is carrying on an enterprise.
Before registering voluntarily, the organisation should consider whether the benefits of registration outweigh the administrative and reporting obligations.
A registered organisation may be able to claim input tax credits for GST included in the price of eligible purchases. However, it must also pay GST to the ATO on any taxable supplies it makes.
If an organisation is not registered and is not required to be registered for GST:
- it does not include GST in the price of the goods and services it sells, and
- it cannot claim input tax credits for GST included in the price of goods and services it buys
An organisation needs an Australian Business Number (ABN) to register for GST.
Registration can be completed through the ATO's online services for business, by phone or with assistance from an accountant or lawyer.
GST turnover of $150,000 or more
A not-for-profit organisation must generally register for GST if it is carrying on an enterprise and its GST turnover meets the $150,000 registration threshold.
An organisation that is required to register for GST:
- must pay GST to the ATO on taxable supplies it makes, including supplies made after the date it was required to register, and
- may claim input tax credits for GST included in the price of eligible purchases once it is registered and the relevant requirements are satisfied
An organisation will generally need a valid tax invoice to claim an input tax credit for a purchase.
An organisation needs an ABN to register for GST.
Registration can be completed through the ATO's online services for business, by phone or with assistance from an accountant or lawyer.
More information
For further guidance, see the ATO webpage on registering for GST.
GST obligations and concessions
An organisation that is registered or required to be registered for GST must pay GST to the ATO on the taxable supplies it makes.
A supply is generally taxable if:
- it is made for consideration
- it is made in the course or furtherance of an enterprise carried on by the supplier
- it is connected with Australia, and
- the supplier is registered or required to be registered for GST
GST is not payable on a supply that is GST-free or input taxed. The GST law identifies particular supplies that may be GST-free or input taxed, including certain health services and supplies of residential premises.
Special GST concessions are available to some not-for-profit organisations, endorsed charities, gift-deductible entities and government schools. The concessions that apply depend on the type of organisation and the particular transaction. An organisation may fall within more than one of these categories.
Concessions may apply to matters such as:
- raffles and bingo
- fundraising events
- sales of donated second-hand goods
- non-commercial activities, and
- accounting and administrative arrangements
Caution
Your organisation must satisfy the requirements for the particular concession and transaction. Review the ATO’s guidance on GST concessions for not-for-profits and consider seeking advice from an accountant or lawyer.
Eligibility for GST concessions
The GST concessions available to an organisation depend on whether it is:
- a not-for-profit organisation
- an endorsed charity
- a gift-deductible entity, or
- a government school
An organisation may fall within more than one of these categories. Different concessions and conditions may apply to each category.
More information
For more information about charity tax concessions, see the ACNC's guidance on charity tax concessions.
For more information on deductible gift recipient endorsement, see our webpage on DGR status.
Common questions about GST
Do charities pay GST?
A charity may have to register for GST and pay GST on the taxable supplies it makes. Whether GST applies depends on matters including its GST turnover, registration status and the type of transaction.
Charities may also qualify for GST concessions if the relevant requirements are satisfied.
For more guidance, see GST registration and GST obligations and concessions above.
When does a not-for-profit have to register for GST?
A not-for-profit organisation generally has to register for GST if it is carrying on an enterprise and its GST turnover meets the $150,000 threshold. An organisation that is not required to register may choose to register voluntarily.
For more guidance, see GST registration above and the ATO guidance on GST registration fort not-for-profits.
Are donations subject to GST?
A genuine gift or donation to a not-for-profit organisation is not payment for a supply and is not subject to GST. It is also not included when working out the organisation’s GST turnover.
Whether a payment is a genuine gift or donation depends on the circumstances. In general, it must be made voluntarily and the donor must not receive a material benefit in return.
A payment may be treated differently if the donor receives something of material value, such as commercial advertising, membership rights or another substantial benefit.
For more guidance, see the ATO guidance on GST and gifts and donations.
What GST concessions apply to charities?
Charities may qualify for GST concessions relating to particular transactions and administrative arrangements.
These may include concessions for fundraising events, raffles and bingo, sales of donated second-hand goods and certain non-commercial activities.
The concessions available depend on the type of organisation, whether it has any relevant endorsement and the transaction involved. The requirements for the particular concession must be satisfied.
For more guidance, see the ATO guidance on GST concessions.
The content on this webpage was last updated in September 2026 and is not legal advice. See full disclaimer and copyright notice.
