How will the GST apply to charitable activities and religious services?

Activities

Services

Post‑election consultation

Donations

Higher GST threshold
	Non‑commercial activities conducted by charities will be GST‑free, provided the charities are eligible for income tax deductibility.
This means their services are not subject to the goods and services tax (GST) and they can claim input tax credits for any GST paid on their inputs.
Commercial activities of charities will be subject to GST to avoid unfair competition with other businesses.  
•	For example, sales by a charity bookshop selling new books to the public will be subject to GST in the same way as sales from other bookshops.
All activities conducted by charities will benefit from the fall in industry costs resulting from the introduction of the new tax system and the abolition of a number of inefficient taxes. 
Religious services will be GST‑free.  Churches and other institutions that provide religious services will not charge GST on them and they will be able to get input tax credits for GST paid on their inputs.
The precise scope of non‑commercial charitable activities and religious services that will qualify as GST‑free will be subject to post‑election consultation through the Tax Consultative Committee, chaired by a distinguished Australian.
Donations to charities will not be subject to GST.  Donations are not payments in return for goods or services.
Charities, as well as all other non‑profit bodies, will be subject to a higher GST registration threshold.  
If a normal business has annual sales of $50,000 or more, it will be required to register for GST.  For all non‑profit bodies, which will include most, if not all charities, this threshold will be $100,000.	

For further information	

‘A New Tax System’  Chapter 2.
Other fact sheets:  No. 200  ‘The GST at a glance’ and No. 206  ‘GST Glossary:  What do the new terms mean?’.
The Government’s Tax Reform Website:  http://www.taxreform.gov.au
Tax Reform Information Centre:  Telephone 13 30 99