30 March 2024

GST and supplies made by endorsed charitable institutions for nominal consideration
25 October 2012

A supply (that is not a supply of accommodation) made by an endorsed charitable institution is GST-free if the supply is for consideration that is less than 75% of the consideration the supplier provided, or was liable to provide (the consideration provided), for acquiring the thing supplied.

The ATO this month has confirmed that;

'...The entity can include as the consideration provided for acquiring each capital item:

·
an amount equivalent to the decline in value amount for the capital item for that period consistent with Division 40 of the Income Tax Assessment Act 1997 (ITAA 1997), or

·
the consideration provided for the capital item in that period.

In either case, an apportionment of the consideration provided is required if the capital item is not used solely for the making of the supplies in the period.'

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