GST Frequently Asked QuestionsQuestion: When we send our ministry contribution to our parent congregation can we deduct any Input Tax Credit (eg electricity) from our contribution or will Church Office reimburse us?
Answer: I would not deduct Input Tax Credits from other payments because it would probably become too messy. Either Church Office or your parent congregation will reimburse you for GST.Question: Each month we pay our parent congregation for AP magazines that are available for church members to read at no cost to them. Is GST chargeable on these or is it already included in the price (ie $8.18 GST 82c to be shown in our statement)
Answer: As there is no GST on internal transactions, you should simply pay the parent congregation the net figure for all such payments. They will take care of any GST on your behalf.Question: Each month we give a donation to APWM and, finance willing, another mission (eg Christian Blind Mission). Are we required to add GST to these donations?
Answer: GST is only payable by the receiver on conditional gifts/donations, ie where the donor receives a benefit.Question: We often have visiting preachers from (a) another church within our group in Queensland, (b) a church not within our group or (c) people representing a mission agency we support speaking on the work of the mission. If we compensate them for their time & travel, or give a donation to their mission, is GST payable.
Answer: Payments to ministers and donations to overseas missionaries are GST free.Question: Deposits are not subject to GST until the camp has actually been held, or they become a cancellation fee. Can these deposits just be recorded as a separate entity, but using the same bank account? For any breakages, we have been charging the cost of replacement, we will of course factor in the new cost, but should we also add GST to this charge? If not, will any breakages charged require a separate invoice?
Answer: Because we have elected to account for GST on a cash basis, GST is payable on receipt of the deposits. You should add on GST for breakages because you will be charged GST on the replacement purchased.Question: Are ministers without a charge, who do casual preaching, required to have an ABN? Or does the paying charge simply deduct the GST to be claimed back later by the minister?
Answer: Ministers do not need an ABN and payments for religious services are GST-free.
Question: We are of the impression that our payment to Church Office for Home Missionaries won't attract GST. What is the position with Travel and Book Allowances that are paid direct to the Home Missionary? Will we have to add GST to these payments? If so, is the Home Missionary able to claim it back? Our Home Missionary is registered for GST in connection with his part-time position – he is on a half-time appointment to our church.
Answer: No, there is no GST involved in Travel and Book Allowances.Question: If one pays for camp fees prior to 1 July 2000 they are exempt from GST. This is similar to purchasing goods on lay-by prior to the 1 July 2000 in that they would then be exempt. Is it correct to say that if the item were paid for on 29/30 July 2000 it would be liable for GST?
Answer: The payment before 1 July 2000 of Camp Fees for a camp to be held after 30 June 2000 would not be exempt from GST because the date applicable is the date on which the supply is made, ie the actual date the camp is held.Question: If we collect, say $10,000, rent in a year, do we pay 10% GST on this?
Answer: GST is not payable on rent received because it is an input taxed supply. However, you cannot claim input credits for GST included in expenses related to the rent. If the rent charged is less than 75% of the GST inclusive market value – then it would be GST Free, and input credits could be claimed. You would need to be able to show how you ascertained the market value.Question: Should 48.5% be withheld on small transactions of $50 or less?
Answer: You do not to withhold GST if the GST-exclusive value of the total supply is $50 or less.Question: Our income of $2.50/day from a Vacation Bible School held during the school holidays was more than 75% of the costs. The costs included that of craftwork materials, teas and biscuits. How do we show this in our books for GST purposes?
Answer: Show the GST on the daily income and show the GST on any expenses incurred where applicable.Question: Our congregation has one paid employee for which PAYE/PAYG has been deducted and paid to the ATO on a quarterly basis. The payments for PAYG are shown under section W of the BAS statement must we submit this info to Church Office for payment?
Answer: The ATO will be sending out separate documentation to members of the PCQ group for the payment of PAYG, where applicable.
Question: We are holding a Kid's Camp in October so we would appreciate advice regarding the application of GST to camp fees, and how we handle GST related costs. Our understanding is that Church Office runs an “account” for the Outback Weekender Camp and we, the local congregation, forward receipts and bills to Church Office for processing. Therefore does Church Office put in the GST statement for the camp or does the congregation that is holding the kid's camp?
Answer: Camp fees received should be held in a trust account until the camp is actually held. It is only at that stage that the GST charged on camp fees can actually be dealt with for BAS purposes. As Church Office runs an account for yourselves submit all your details as normal and Church Office will submit the information to the ATO via the group BAS.Question: Does money donated to a “building fund” attract GST – one is not specifying what part of the building is being “donated”. Is this correct?
Answer: Building Fund contributions are considered GST free.Question: GST is charged on the labour and materials when a building or extension is erected. As a religious institution, can these monies be claimed back?
Answer: Yes.Question: If an Op-shop rents a shop for the purpose of the charitable activity, can they receive a GST refund on the rent, electricity, etc for the premises?
Answer: If the Op Shop is registered for GST it claim the GST.