GST Worksheet

November 10, 2021

How do you know when to charge or claim GST?

If your church is registered for GST then you need to consider the impact on both the money that is collected and the expenses that are incurred.


A great resource in this regard is the Church Finance Handbook that Saward Dawson, an accounting firm in Melbourne, has compiled. Within this handbook is a specific section on GST which provides an overview of the general requirements to charge or claim GST, exemptions for churches, and examples of church-specific transactions.


According to the GST Handbook, donations, gifts, tithes and offerings are generally not subject to GST as they are not a payment for "supply" (the payer receives no material benefit). Such payments must be unconditional.


But what about all the other types of money that is collected, such as from the youth group, a church dinner, family camp, or other events?


You need to consider each type of income and whether it falls under the available exemptions, otherwise you need to include GST in the amount charged or collected.


It is worth noting that just because the church has a tax invoice that shows GST was paid on certain expenditure does not mean there is an automatic entitlement to claim back that GST. There are certain circumstances where this is not permitted.


To help you determine and document these decisions we have put together a GST worksheet. This resource walks you through the exemptions and, when completed, will form a record of the decision regarding GST that can be filed and produced in the future should you ever need to produce evidence of a decision.


Click here to download the worksheet

Note: this worksheet can be used by your church if you meet the three assumptions noted on the front page


This worksheet has been prepared on the basis of information available at the date of preparation. The information is general in nature and is not intended to be taken as substitute for specific professional advice. We recommend that advice be sought on specific issues prior to acting on transactions affected.

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