Although the Goods and Services Tax (GST) legislation classifies education as GST-free, the University is not exempt from GST payment, collection or administration. As a registered enterprise, the University is required to remit to the Australian Taxation Office (ATO) 1/11th of consideration received for providing any supply in the furtherance of the enterprise, unless that supply is GST-free or input taxed. Conversely, the University is entitled to claim back from the ATO GST paid on inputs, provided a tax invoice is obtained for amounts above $55 GST inclusive.
2. GST Administration
The University ABN is 15 050 192 660. The University does not transact with an entity that does not have ABN registration, unless a signed ATO form entitled “Statement by a Supplier – Reason for not Quoting an ABN to an Enterprise” is provided.
Business Activity Statement (BAS)|
As the University is classified as a large withholder under the GST Act, it is required to lodge its BAS electronically to the ATO on a monthly basis, by the 21st of the following month.
Deductible Gift Recipient
The University holds endorsement as a deductible gift recipient under Subdivision 30 of the Income Tax Assessment Act 1997. This ensures that bona fide donations made to the University can be claimed by the donor as an income tax deduction. Under the GST legislation donations are not defined as consideration and thus do not constitute a taxable supply.
3. Tax Invoice
The University must produce a tax invoice whenever a taxable supply above $55 GST inclusive is provided, to enable the recipient of the supply to claim an input tax credit. Conversely the University must hold a valid tax invoice for all expenses incurred above $55 GST inclusive, to enable an input tax credit to be claimed.
Valid Tax Invoice Criteria:
All tax invoices must include the following information for an input tax credit to be validly claimed:-
ABN of the supplier
the words “tax invoice” stated prominently
the date of issue of the tax invoice
the name of the supplier
a brief description of each thing supplied
the GST inclusive price of the taxable supply
if the GST to be paid is exactly 1/11th of the total taxable supply, there is a choice to either disclose the GST amount separately or include a statement that the “Total Amount Payable Includes GST”
if the GST to be paid is less than 1/11th of the total taxable supply, the invoice must separately disclose the amount payable (excluding GST) and the total amount of GST payable.
In addition, tax invoices for GST inclusive supplies $1,000 or more must also include the following information for an input tax credit to be validly claimed:-
must clearly identify each taxable supply
the name of the recipient
the address or ABN of the recipient
the quantity of the goods or the extent of services supplied
Credit card receipts are not tax invoices and cannot be used to claim an input tax credit.
4. GST Free Transactions Between Catholic Entities
The University is a member of the Catholic GST Religious Group. All transactions between members of the Catholic GST Religious Group will not be subject to GST. This eliminates the need for the University to charge GST and then claim a GST credit on intra-church transactions.
Examples of Catholic entities with which the University transacts include the following:-
GST is not charged to cost centres. The Finance Directorate is responsible for claiming GST on inputs and remitting GST on taxable outputs, via the monthly lodgement of the BAS.
All expenses incurred by a cost centre must be supported by a tax invoice. If a tax invoice is not obtained, then the University is unable to claim input tax credits and the cost centre will be required to meet the additional GST cost.
If a cost centre generates funds from publications, subscriptions, conferences, special education courses, consultancies, grants, sale of goods or by any other means then it is potentially making a taxable supply. For enquiries regarding GST status of the supply, contact Rajan Wijey, Financial Accountant email: Rajan.Wijey@acu.edu.au.
Where tax invoices are supplied for inputs and valid tax invoices are issued for taxable outputs, there is no impact on budgets.