Private ruling: Donations
Date of advice: 4 March 2026
Published: 20 April 2026
Ruling period: XXXX to XXXX
Date scheme commenced: XXXX

Ruling: Q2: Did you, make taxable supplies pursuant to section 9-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) when you provide goods and services (the relevant supplies) to non-resident recipients during the relevant periods? | A1: No, you did not make taxable supplies of goods and services to non-residents as we consider that the payments received from non-resident donors are a 'gift' made to a nonprofit body and therefore not consideration for any supply. | Q3: If the answer to question above is 'no', will Division 142 of the GST Act apply to prevent the refund of excess GST in relation to donations from non-residents, for the relevant tax periods? | A2: No, Division 142 does not apply to prevent refund of excess GST reported on your business activity statements (BASs) in the relevant tax periods. You are able amend your BASs to be refunded the excess GST included in your assessments relating to donations from non-residents, if the BASs are within the period of review as specified in section 155-35 of Schedule 1 to the Taxation Administration Act 1953.

Relevant facts and circumstances: You are located in Australia and registered for GST. You are a non-profit entity. You are not registered with Australian Charities and Not-for-profits Commission (ACNC) as a charity, nor registered as a religious institution. The relevant periods refer to the quarterly tax periods from XXXX till XXXX. You provide services and support to recipients worldwide (the relevant supplies). The relevant supplies are provided free of charge to non-resident recipients. You included an amount of GST in your assessments during the relevant periods pertaining to donations received from non-resident donors. You have not provided tax invoices to non-resident donors for donations received, and non-resident donors are unaware GST has been remitted on their donation amount. You identify the donations from non-resident donors using various methods. You are not obligated to use the donations received from non-resident donors in a specific way. The organisation is clear to all donors that donated funds will be used to meet company priorities as decided by the director(s). This condition is stated clearly in the Terms & Conditions page on your website.

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 subsection 9-17(2) | A New Tax System (Goods and Services Tax) Act 1999 subsection 142-5(1) | A New Tax System (Goods and Services Tax) Act 1999 subsection 142-10 | A New Tax System (Goods and Services Tax) Act 1999 subsection 195-1

Reasons for decision: Summary: Section 9-5 provides that you make a taxable supply if: (a) you make the supply for consideration; and (b) the supply is made in the course or furtherance of an enterprise that you carry on; and (c) the supply is connected with the indirect tax zone (Australia), and (d) you are registered, or required to be registered However, the supply is not a taxable supply to the extent that it is GST-free or input taxed. Relevantly, to satisfy the first requirement in section 9-5, an entity must first make a 'supply' for which payment is 'consideration'. Subsection 9-10(1) of the GST Act provides that a supply is any form of supply whatsoever. Subsection 9-10(2) provides that, without limiting subsection 9-10(1), 'supply' includes, amongst other things: a supply of goods or services. Further, section 195-1 of the GST Act provides that 'consideration', for a supply or acquisition, means any consideration, within the meaning given by sections 9-15 and 9-17 of the GST Act, in connection with the supply or acquisition. You provide various services and support to recipients worldwide (the relevant supplies), therefore you are making a supply. The relevant supplies are provided free of charge to non-resident recipients by you. Subsection 9-17(2) of the GST Act specifically excludes a gift made to a non-profit body from being consideration for a supply. 'Gift' and 'non-profit body' are the essential terms in this paragraph. It follows that if there is a gift to a non-profit body there will not be a taxable supply, unless there is another supply made for the consideration (gift). Goods and Services Tax Ruling GSTR 2012/2 Goods and services tax: financial assistance payments (GSTR 2012/2) explains at paragraphs 69 and 70: 69.Gifts to a non-profit body are not consideration for a supply. 70.The term 'gift' is not defined in the law and therefore takes its ordinary meaning having regard to the context in which it appears. It is considered that a 'gift' has the following characteristics and features: • there is a transfer of a beneficial interest in property; • the transfer is made voluntarily; • the transfer arises by way of benefaction; and • no material benefit or advantage is received by the giver (payer) by way of return. Additionally, GSTR 2012/2 provides at paragraph 112: 112. Applying the criteria may involve a matter of degree. Therefore, in determining whether a financial assistance payment is a gift it is necessary to consider the whole of the circumstances surrounding the payment and this may include the role of parties other than the payer and the payee. It is the substance and reality of the payment that has to be ascertained. It is therefore necessary to take account of those acts, transactions, arrangements and circumstances that provide context and the explanation for the payment. A payment will not be a gift where there is a contractual obligation on the part of the charity or non-profit organisation to use the funds in a specified way or the provision of a material benefit to the donor. A payment made in return for a material benefit or an enforceable obligation to use the funds for a specified purpose is consideration for a supply. The organisation receiving the payment has supplied something in return for the payment. You are not obligated to use the donations received from non-resident donors in a specific way. The organisation is clear to all donors that donated funds will be used to meet company priorities as decided by the director(s). This condition is stated clearly in the Terms & Conditions page on your website You are a non-profit entity and provides the goods and services free to everyone, when a non-resident takes up the option to donate, they do not receive anything that they weren't getting already. Further, there is no obligation for you to do anything upon receipt of a donation from a non-resident donor. Further, we consider that the payments received from non-resident donors are a 'gift' made to a non-profit body and thus, not consideration for a supply and not subject to GST. Division 142 generally restricts refunds when you make an overpayment of GST where a refund may result in a windfall gain. Excess GST is defined in subsection 142-5(1) as an amount that has been taken into account in an assessed net amount but in fact is not payable. Under section 142-10, if the excess GST has been passed on to another entity, that excess GST is taken to have always been payable until the passed-on GST is reimbursed to the other entity. However, if the excess GST has not been passed on, section 142-10 does not apply, and the supplier may request an amendment to their assessment for the relevant tax period to reduce the amount of GST attributable to that tax period. Any resulting refunds are then to be paid or applied in accordance with Division 3 and 3A of Part IIB of the Taxation Administration Act 1953 (TAA). Goods and Services Tax Ruling 2015/1 Goods and services tax: meaning of the terms 'passed on' and 'reimburse' for the purposes of Division 142 of the A New Tax System (Goods and Services Tax) Act 1999 (GSTR 2015/1) notes that whether the excess GST has been passed on is a question of fact and must be determined on a case-by-case basis taking into account the particular circumstances of each case. The Commissioner provides, in paragraph 28 of GSTR 2015/1 a list of factors that should be considered in determining whether the excess GST has been passed on to recipients. This includes: • the manner in which the excess GST arose • the supplier's pricing policy and practice • the documentary evidence surrounding the overpayment, and • any other relevant circumstances | Detailed Reasoning - The manner in which the excess GST arose: The manner in which an amount of excess GST arises is relevant in considering whether or not the excess GST was passed on. GSTR 2015/1 at paragraph 31 considers four common circumstances: • incorrectly treating something which is not a supply as a taxable supply • miscalculating a GST liability under the GST law • incorrectly reporting an amount of GST on a GST return, and • incorrectly treating a GST-free or input taxed supply as a taxable supply (including incorrectly apportioning the taxable and non-taxable components of a mixed supply). You have incorrectly reported an amount of GST on a GST return. As explained above, the payments received from non-resident donors are a 'gift' made to a non-profit body and therefore not consideration for a taxable supply. | Detailed Reasoning - The suppliers pricing policy: The relevant supplies are provided by you with no expectation of payment or donation from non-resident recipients. You do not set prices for anything that you provide. There is no suggested donation amount or expectation of a donation from non-resident recipients requested by you to provide the relevant supplies. | Detailed Reasoning - The documentary evidence: You included an amount of GST in your BAS during the relevant period pertaining to donations you received from non-resident donors. You have not provided tax invoices (and do not provide tax invoices) to non-resident donors for donations received. | Detailed Reasoning - Any other relevant circumstances: You do not operate in a commercial environment where you make supplies of religious goods or services in exchange for payment. You are a not-for-profit entity that provides various religious services free or charge. Any payments to you are on voluntary basis. | Detailed Reasoning - Conclusion: There is a general expectation that excess GST will have been passed on and a supplier will need to clearly substantiate the grounds on which it claims a refund of excess GST and that their circumstances are outside the ordinary. Overall, based on the circumstances provided, the Commissioner is satisfied that you have not passed on the excess GST in respect of the relevant supplies during the relevant periods. Therefore, section 142-10 does not apply, and you may request an amendment to your assessment for the relevant tax periods. Any resulting refunds are then to be paid or applied in accordance with Division 3 and 3A of Part IIB of the Taxation Administration Act 1953 (TAA).