The Law Handbook 2024

620 Section 6: Houses, communities and the road services or remit the GST to the ATO. However, it cannot claim GST credits for any GST included in the price of goods and services bought by the organisation in carrying on its activities. If an organisation is registered for GST, then generally GST is payable on the sale of goods and services (called taxable sales) made by the organisation. The organisation will then be liable to pay GST to the ATO on the taxable sales. There are other types of sales where GST is not payable. These are called GST-free sales and input-taxed sales. If an organisation is registered for GST, then it can claim GST credits for any GST included in the price of goods and services bought by the organisation in carrying on its activities. The organisation claims GST credits in its business activity statement. However, there are GST concessions available for not-for-profit community organisations. These concessions usually relate to particular activities (e.g. sales relating to raffles, bingo, fundraising events, sales of second-hand goods or non-commercial activities, volunteer expenses and certain gifts) and mean that GST is not payable on supplies relating to those activities. There are significant reporting and accounting requirements attached to GST registration. An organisation should obtain professional advice about whether it should register for GST, the effect of GST on funding sources, and the best way of maintaining cash flow for the organisation in light of GST remittance obligations. For more information about GST, call the ATO’s not-for-profit organisation telephone enquiries line (1300 130 248). Not-for-profit Law has published resources that explain the different tax concessions for community organisations (see www.nfplaw.org.au/free- resources/tax-landscape) . Funding Community organisations may obtain funds through fundraising, donations, government funding and philanthropic grants. Fundraising in Victoria Groups fundraising in Victoria need to comply with the Fundraising Act 1998 (Vic) ( Fundraising Act ) and the Fundraising Regulations 2019 (Vic) (‘ fundraising laws ’). The fundraising laws are regulated by CAV, and cover activities including telephone appeals, door-knock appeals, traffic intersection and highway collections, golf days, movie nights and trivia nights, dinner dances and balls, public auctions, clothing bins and sale of goods at opportunity shops, appeals run by commercial fundraisers, public appeals to support clubs, associations, causes or people, and sale of goods where it is represented that part of the sale price is to be donated to a charitable organisation or case. Any person or organisation that undertakes fundraising must register as a fundraiser unless they are exempt from registration. Organisations that are charities registered with the ACNC don’t need to register separately with CAV to fundraise in Victoria. Instead, they only need to notify CAV of their intention to conduct a fundraising appeal in Victoria to be considered a registered fundraiser. Organisations can notify CAV via myCAV (the online system for incorporated associations). An organisation does not need to register under the Fundraising Act but must comply with all the other requirements of the Fundraising Act, if: • the organisation receives less than $20,000 gross in a financial year from fundraising; • the organisation is not paid to conduct the fundraising; and • the organisation only uses unpaid volunteers. Certain organisations do not need to register under the Fundraising Act and do not need to comply with Part 3 of the Fundraising Act but must comply with all the other requirements of the Fundraising Act. For more information about Victoria’s fundraising laws, visit Not-for-profit Law’s website (www.nfplaw. org.au/free-resources/fundraising-and-holding- events/fundraising) . Australian Consumer Law and other relevant laws If an organisation engages in fundraising activities, it may also have obligations under and may need to comply with the Australian Consumer Law ( ACL ). The ACL is a national law that protects consumers from unfair and unsafe business practices when buying goods and services.