Private ruling: GST annual turnover
Date of advice: 17 October 2025
Published: 1 December 2025

Ruling: Q1: Are the payments collected by the Club from its members for lunches consideration for supplies and therefore, included in calculation of the GST annual turnover under Division 188 of the A New Tax System (Goods and Services Tax) Act 1999 ? | A1: Yes

Relevant facts and circumstances: Background and structure The entity is a not-for-profit club (the Club) serving its community members. The main sources of the Club's income are membership fees and grants. The objectives of the Club is to: • promote and maintain the members' culture and traditions through communal activities and encouragement of good relationships among members; • hold various cultural, social and travel activities for the benefits of its members; • encourage and maintain good, harmonious and close relationship between members and other Australian communities at the local, state and federal levels. Activities and services The Club: • offers a wide range of interest groups and wellness activities such as healthy exercise, walking group, line dances, group dances, folk dances, table tennis, choir, bridge, opera and blood pressure test service; • provides simple hot lunches prepared by volunteers at nominal prices; • hosts festive celebration lunches with special programs; • conducts health talks/seminars and visits to support ill or hospitalised members. Cultural events The Club holds four major cultural events annually. The events include lunches provided to the attendees and the Club charges a fee for these events. The lunches are ordered from local restaurants. In addition to the lunches, the fee allows the Club to pay for other costs such as decorations, stationery, raffles, hall hire and other expenses. Receipt tickets are issued by the Club to members with details of the event. A typical event may have XX attendees who each pay $X. A small number of attendees pay 50% of the fee and a few attend for free.

Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999 section 9-5 | A New Tax System (Goods and Services Tax) Act 1999 section 9-10 | A New Tax System (Goods and Services Tax) Act 1999 section 23-5 | A New Tax System (Goods and Services Tax) Act 1999 Division 188 | A New Tax System (Goods and Services Tax) Act 1999 Division 195

Reasons for decision: Summary: All legislative references are to the A New Tax System (Goods and Services Tax) Act 1999 unless otherwise noted. GST registration requirements Generally, section 23-5 provides that a not-for-profit entity is required to be registered for GST if it is carrying on an enterprise and has a GST turnover that meets the registration turnover threshold, which $150,000 for not-for-profit organisations . GST turnover threshold Under subsection 188-10(1), an entity's GST turnover meets the registration turnover threshold if: • the entity's current GST turnover is at or above the registration turnover threshold, and the Commissioner is not satisfied that the entity's projected GST turnover is below the registration turnover threshold; or • the entity's projected GST turnover is at or above the registration turnover threshold. An entity's current GST turnover is the total value of all the supplies it makes or is likely to make in the current month and the past eleven months. The entity's projected GST turnover is the total value of all the supplies it makes or is likely to make in the current month plus the next eleven months. In calculating the Club's GST turnover, the value of all supplies of entry to events or functions (which may or may not include food), membership fees, and any other sales are included other than: • input taxed sales (e.g. financial supplies) • sales not connected with an enterprise that the entity carries on • sales that are not made for consideration (unless the sales made to associates). Genuine gifts received by the Club are excluded from GST turnover calculations as they are not consideration for supplies. That is, a gift is not payment for any supply made by the Club. As the Club is not currently registered for GST, it must monitor both its current and projected GST turnover monthly to determine whether it is required to register. If either turnover reaches or exceeds the $150,000 threshold, the Club must register within 21 days. Supplies Under section 9-10, a supply is defined broadly to include any form of supply, whether of goods, services, or other things. Subsection 9-10(2) provides a non-exhaustive list, including the supply of goods, services, advice or information, and the entry into or release from obligations. When the Club organises events for its members, including lunches, and collects payments to cover the costs of those events, it is making supplies. Members receive tickets detailing the event, indicating an entitlement to attend and receive meals. Although the meals are prepared by external providers, the Club coordinates the entire event, covering logistics such as venue, decorations, stationery, raffles, and other services. This indicates the Club is not merely acting as an agent purchasing food on behalf of members, but is instead supplying a complete event experience. Conclusion The payments received by the Club are consideration for a supplies that include both the meals and associated event services. Therefore, the Club must include the value of lunches in its calculation of GST turnover.