For more information visit the Australian Taxation Office website or consult a certified accountant.
The Australian Business Number (ABN) is the single identifier that club’s, societies and associations will use to register for the goods and services tax (GST). Clubs may have obligations for GST, Pay As You Go (PAYG) and Fringe Benefits Tax (FBT). These and other taxes can apply irrespective of whether the organisation is exempt from income tax.
The goods and services tax is a broad-based tax of 10 per cent on the supply of goods and services consumed in Australia.
Prices must include GST where applicable (eg. Membership fees). For example, an annual membership fee for a football club of $55 includes a GST of $5. Donations, grants, sponsorships, fundraising and the preparation and supply of food are treated in different ways with respect to GST, so you should contact a qualified accountant or financial advisor about the best way to deal with the GST.
The pay as you go system (PAYG tax payment) covers the taxes which are payable to the Australian Taxation Office. The PAYG system consists of two components: PAYG withholding and PAYG instalments.
The following situations are exempt from withholding:
At the end of the financial year, the club is required to prepare and submit an annual report to the ATO, which reconciles all withholding payment made to the ATO during the financial year.
A fringe benefit is a benefit provided to you or an associate because of your employment. You can be a current, former or future employee. The benefit can include any right (including property), privilege, service or facility. FBT is a separate tax from income tax and organisations that are exempt from income tax may still be required to pay FBT. The tax is calculated on the taxable value of the fringe benefit provided.
Clubs are required to prepare a Business Activity Statement (BAS) if they are registered for GST or employ people. A BAS is the single form you fill in and return to the ATO to report your obligations and entitlements relating to: GST, FBT, and PAYG withholding amounts.
The ATO will send you your activity statement before you need to lodge it. Your activity statement is personalised to your business, with some parts already filled in to save you time and effort. Each activity statement has a unique document identification number.