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GST Assistance for Groups

For some time now, Groups have been encouraged to utilise Head Office for GST processing that has for all intents and purposes provided a GST win fall for Groups. As it transpires this is not the case and other than Grants, Head Office has been funding the 10% GST back to Groups to the tune of around $20,000 per annum. Following a review of GST processes, Head Office can continue to offer Grant-associated “GST Help” where the purchase of items are being funded by a Grant with the Grant funding paid directly to head office, for example from a local council or from Active Club. However GST Help not associated with a Grant whereby Groups would transfer the GST exclusive value for Head Office to pay an invoice, cannot be continued as Head Office cannot continue funding the out of pocket GST costs. There was a misconception that there was no GST cost to Head Office of paying the invoices.  Further information and some examples refer to “GST Help for Scout Groups” PDF below.

So please see below what will be available and what instances we need to change for Groups.

Continuing: Grant-Associated “GST Help”

Head Office will continue to offer Grant-associated “GST Help” where the purchase of items are being funded by a Grant, for example from a local council or from Active Club.

Current process

After you have been successful in obtaining funding:

  1. Head Office receive the Grant funds and pass the GST (if applicable) onto the Australian Taxation Office
  2. You ask the supplier to invoice Scouts SA for the items that were funded, and Head Office will pay the invoice up to the value of the grant funding and claim back any applicable GST.

eg. Head Office receive Grant income for equipment of $1,100 including GST. Grant income is $1,000 excluding GST.

The equipment you require is $1,100 including GST and you ask the supplier to invoice Head Office who pay the invoice. Cost of the equipment is $1,000 excluding GST.

Income and expense excluding GST equal to zero

 

Ceasing: Other “GST Help” or “GST Relief”

In the past, there has also been an opportunity for groups to submit invoices over $1,000 to Head Office when purchasing capital items, not funded by a grant.

Unfortunately, this will no longer be available, effective from 2nd September, 2022.

The reason behind this change is because Head Office was reimbursed only the GST exclusive amount of the invoice and was therefore out of pocket by the GST portion every time. This was not a win win situation and must unfortunately cease.

 

For further information, contact Member Services at Head Office.

GST References