ATO Volunteer and Tax Guide
Friday, 16th May 2008 at 2:27 pm
The Australian Tax Office has released a new version of its guide Volunteers and Tax to help individuals and Not for Profit organisations that deal with volunteers.
The updated Guide explains the tax treatment of transactions that commonly occur between NFPs and their volunteers.
Payments such as honoraria, allowances and reimbursements made by Not for Profit organisations to their volunteers, and the tax treatment of them, are explained.
The guide also discusses whether expenses incurred by volunteers are tax deductible.
Further guidance is provided for organisations on goods and services tax (GST), fringe benefits tax (FBT) and pay as you go (PAYG) withholding obligations that may arise on transactions involving volunteers.
The new version incorporates the following changes since the guide was last issued in March 2005:
– The GST registration threshold increased from $100,000 to $150,000 for NFP organisations.
– The threshold for withholding from a supplier that does not provide an Australian business number (ABN) increased to $75, excluding any GST. Previously this was $50.
– The ABN withholding rate decreased from 48.5% to 46.5%.
– A valid tax invoice is not required in order to claim GST credits for purchases not exceeding $82.50 (GST inclusive). Previously this was $55.
You can download a PDF version of the Guide at http://www.ato.gov.au/nonprofit/content.asp?doc=/content/8729.htm
Or order a hard copy by phoning 1300 720 092 and quoting the NAT number 4612.