Finance & Funding

Tax and Reporting Obligations

Depending on a club's size and its operational structure, a club may have obligations for GST, Pay As You Go (PAYG) and Fringe Benefits Tax (FBT). To find out more about what taxes may apply to your club, visit the ATO website.

AUSTRALIAN BUSINESS NUMBER (ABN)

An ABN is the single identifier that the Australian Taxation Office (ATO) uses for non- profit organisations to interact with the ATO to gain access to information relating to the club’s obligation.

All clubs should register for an ABN even if they do not register for GST. If a club does not have an ABN or does not show the number to other businesses to whom it supplies goods or services, those businesses will be required to deduct PAYG withholding tax from payments to that business. An ABN is useful for all non-profit entities because even tax-exempt organisations have obligations for other taxes.

GOODS AND SERVICES TAX (GST)

Goods and services tax (GST) is a broad-based tax of 10% on most goods, services and other items sold or consumed in Australia. If the club has a GST turnover of

$75,000 or more ($150,000 or more for non-profit organisations), the club will need to register for GST.

For more information, visit the ATO website.

PAY AS YOU GO (PAYG) SYSTEM

The pay as you go system (PAYG tax payment) is designed to cover the taxes which are payable to the Australian Taxation Office. The PAYG system consists of two systems: PAYG withholding and PAYG instalments.

PAYG withholding is a system whereby the club withholds tax from payments. These may include:

Salary and wage payments made to employees
Payments to suppliers that do not quote an ABN number on their tax invoice
Voluntary payments with contractors

For more information on PAYG, visit the ATO website.

FRINGE BENEFIT TAX

Fringe Benefits Tax is a tax payable by employers who provide fringe benefits to employees. It is a separate tax from income tax and organisations that are exempt from income tax may still be required to pay FBT.

The amount of fringe benefits provided to an employee should be recorded and when the amount for an employee exceeds $1000 each year, the amount should be included on the employee annual PAYG payment summary.

Volunteers are not paid, either cash or in kind (fringe benefits).

BUSINESS ACTIVITY STATEMENT (BAS)

A BAS is a form that the club needs to complete and return to the ATO to report obligations and entitlements relating to taxes,.

All clubs with GST, FBT and PAYG tax obligations must complete a BAS at the end of each tax or reporting period. Failure to do so may result in the ATO applying late lodgment penalties for outstanding lodgments.

ANNUAL REPORTING REQUIREMENTS

The annual reporting requirements will differ depending on club structure and what state/territory the club operate in. Please refer to the appropriate state/territory authority and/or legislation.