GST Amendments Affecting NFP Sub-Entities

The Federal Government's proposed reforms to GST laws includes an amendment to ensure that Not for Profit sub-entities are able to access the same GST concessions as their parent entity.

The Assistant Treasurer has released a second consultations paper on the reforms to the GST.

A number of concessions are already available to Not for Profit bodies under the GST Act. Certain entities have the option of separately identifying some or all of their operations and treating each as a separate entity for GST purposes. These operations are known as 'non?profit sub?entities', and they only have to register if their GST turnover is above the registration threshold.

The intention of the law is that sub?entities are able to access the same GST concessions as their parent entity and access the higher registration turnover threshold that applies to non?profit bodies. Consistent with this, the Commissioner currently allows sub?entities to access the same GST concessions as their parent entity and to use the higher registration turnover threshold that applies to non?profit bodies. However, there has been some uncertainty as to whether the legislation is clear. This amendment will ensure that the Government’s policy intent is clearly stated in the GST law.

To download the discussion paper go to: www.treasury.gov.au