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Manage GST in affiliated committees

There are 4 different situations that effect how to manage GST. The affiliated committee is either:

  • using the school’s bank account and finance system
  • using the school’s bank account and finance system, and has been approved as a not for profit sub entity
  • using its own bank account and finance system separate from the school and is not GST registered
  • using its own bank account and finance system separate from the school and is GST registered.

If the affiliated committee chooses to use its own bank account and finance system, then they must register for an Australian business number (ABN) and also carefully consider their GST obligations and how GST affects their income and expenses.

More information on the 4 situations are below.

The affiliated committee is using the school’s bank account and finance system

  • The affiliated committee must not register for GST.
  • The affiliated committee treasurer must speak with the school finance officer to make sure all financial obligations and operational matters meet school requirements.
  • The affiliated committee must make sure all invoices and documents are tax compliant.
  • The affiliated committee needs to consider whether GST is payable on income. It is recommended to discuss the options available with the school’s finance officer.
  • The school is responsible for processing all financial transactions through the school’s finance system.

The affiliated committee is using the school’s bank account and finance system, and has been approved as a not for profit sub entity

  • The affiliated committee must have the not for profit sub entity status approved by the governing council each calendar year.
  • The affiliated committee transactions are not shown on the school’s business activity statement.
  • The affiliated committee doesn’t need to pay GST on income but they can’t claim any GST back on purchases.
  • The school are responsible for processing all financial transactions through the school’s finance system.
  • The school must setup unique revenue and expense lines in their chart of accounts to identify affiliated committee transactions as separate to school transactions.

The affiliated committee is using its own bank account and finance system separate from the school and is not GST registered

  • There is no GST on income.
  • GST paid on all taxable goods and services can’t be claimed back.
  • A business activity statement doesn’t need to be lodged with the ATO.

The affiliated committee is using its own bank account and finance system separate from the school and is GST registered

  • The affiliated committee must ensure all invoices and documents are tax compliant.
  • The affiliated committee needs to assess in line with GST legislation whether GST applies to their income.
  • GST on purchases can be claimed back through the affiliated committee’s business activity statement (BAS).
  • The affiliated committee must complete a BAS quarterly.

Contact

School and Preschool Financial Services

Phone: 1800 100 191
Email: education.SiteFinancialResources [at] sa.gov.au

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