In the context of family history societies, a society whose total income, excluding donations, exceeds $100,000 pa (this equates to a membership of approx 1500) must register for the GST i.e. become a ‘”registered person”‘.
Charges for services such as the use of facilities (library, readers), seminars, etc.
Purchases of materials and services necessary to enable a taxable activity.
Purchases (inputs): GST (10%) would be payable on all purchases. Refund of GST paid is not applicable.
Taxable activity: GST would not be charged.
Record keeping: Would not need to keep any GST records.
Impact: Minimal. If a society operates a library and/or a sales outlet for books, etc there would be an increase in costs which may require a corresponding increase in members’ subscriptions to offset same.
Registration: Must register and obtain an Australian Business Number.
Purchases (inputs) : GST (10%) would be payable on all purchases.
Taxable activity: GST would have to be charged on all taxable activity.
Record keeping: The GST components of both inputs and taxable activity would have to be recorded. GST Returns summarising input credits and tax received would have to be submitted quarterly.
Remitting GST: The net difference between the tax collected on taxable activity and that paid on inputs would have to paid f. Impact: Overheads/operating costs would be increased because of the application of tax to books into libraries.Treasurers/bookkeepers of societies would bear the brunt of the additional record keeping and preparation of returns. If manual systems are used additional input would be required with consequent effect on workload of volunteers. If computerised systems are used the additional workload should be minimal. The use of a cash register at the point of sales/receipts of fees/etc could be a help in meeting statutory requirements regarding inclusion of GST on receipts and for record keeping.
Purchases (inputs): GST (10%) would be payable on all purchases including, at the moment, books. Currently, unless an exemption for educational purposes has been obtained, WST (22%) is payable on most purchases except books. Refund of GST paid is not applicable.
Salaries and wages would not be subject to GST but hiring of capacity on a contract basis would be.
Record keeping: The GST components of both inputs and taxable activity would have to be recorded.
GST Returns summarising input credits and tax received would have to be submitted quarterly.
Remitting GST: The net difference between the tax collected on taxable activity and that paid on inputs would have to paid quarterly to the ATO.
Impact: Overheads/operating costs would be increased because of the application of tax to books into libraries.Treasurers/bookkeepers of societies would bear the brunt of the additional record keeping and preparation of returns. If manual systems are used additional input would be required with consequent effect on workload. If computerised systems are used the additional workload should be minimal as should be the case if bookkeeping is done by paid staff.