Senate

Further Supplementary Explanatory Memorandum

Amendments to be moved on behalf of the Government (Circulated by authority of the Treasurer, the Hon Peter Costello, MP)

Chapter 1 - Registration turnover threshold for non-profit sub-entities

Outline of Chapter

1.1 The registration turnover threshold for non-profit sub-entities was originally set at $50,000. After further consultation, it was decided to increase the threshold to $100,000, which aligns with the threshold for non-profit organisations which are entities under general principles. The increased threshold will also enable more non-profit sub-entities to be able to choose whether or not they want to register for goods and services (GST).

Detailed explanation of new law

1.2 Amendment 1 removes section 63-25, which specified that a non-profit sub-entity would have a registration turnover threshold of $50,000. With the removal of this section, a non-profit sub-entity will be subject to the same registration turnover threshold as a non-profit sub-entity under the general provision in subsection 23-15(2). This will increase the threshold for non-profit sub-entities to $100,000.

1.3 The amendment also inserts new section 63-25 , which relates to regulations that may specify a higher registration threshold for non-profit organisations under paragraph 23-15(2)(b). The new section provides that these regulations may specify a different registration threshold for non-profit sub-entities than specified for non-profit organisations that are entities under general concepts.