Generally, your not-for-profit organisation cannot claim GST credits when it reimburses a volunteer for expenses they have incurred in carrying out their activities for the organisation.
Examples: Not entitled to claim
A sporting club reimburses a volunteer coach for petrol costs incurred in travelling to training sessions and matches. The sporting club cannot claim any GST credits for the GST included in the price of the petrol.
A volunteer member of a service club decides to buy stationery for the club because their stocks are running low. The member pays for the stationery and is reimbursed by the club. The club is not entitled to claim GST credits for the GST in the price of the stationery.
End of exampleExceptions
If your organisation is an endorsed charity, a gift-deductible entity or a government school, it is entitled to claim GST credits when it reimburses a volunteer for expenses directly related to the volunteer’s activities for the organisation.
Examples: Exception 1 – entitled to claim
A volunteer of a charity which operates a crisis centre, phones many people from her home. The charity reimburses the volunteer for phone expenses relating to her work for the centre. The charity is entitled to claim a GST credit for the GST included in the price of the calls.
A volunteer counsellor for a charity attends a training session on conflict resolution. The charity reimburses the volunteer for the cost of the session. The charity is entitled to claim a GST credit for the GST included in the cost of the session.
A volunteer for a charity that runs a support group buys soft drink and biscuits for the meetings of the group. The charity reimburses the volunteer for the expense. The charity is entitled to claim GST credits for any GST in the price of the soft drink and biscuits.
End of exampleIf your volunteer acts as your not-for-profit organisation’s agent when incurring an expense, your organisation is entitled to claim GST credits for that expense.
Example: Exception 2 – entitled to claim
A bushwalking club authorises its social secretary to hire a hall for the club’s annual general meeting. The social secretary pays for the hire of the hall. The club reimburses the social secretary for this expense. Provided the social secretary booked the hall in the name of the club (and the club rather than the social secretary is bound by the hire agreement with the owners of the hall), the club will be entitled to claim GST credits for the GST in the price of the hall hire.
End of exampleIf your volunteer is an officer of your organisation (such as a director, secretary or an executive officer), GST credits can be claimed by your organisation when reimbursing the volunteer for expenses directly related to their activities as an officer.
Example: Exception 3 – entitled to claim
The voluntary secretary of the Lawnmowers’ Association of South Australia attends an interstate conference on the latest lawnmower technology. The association reimburses the secretary for her travel expenses in attending the conference. The association is entitled to claim GST credits for the GST included in the costs of her travel.
End of exampleSee also:
A not-for-profit organisation cannot claim GST credits when it reimburses a volunteer for expenses they have incurred in carrying out their activities for the organisation. However, there are three exceptions.