The guide aims to help individuals and not-for-profit organisations that deal with volunteers by explaining the tax treatment of transactions that commonly occur between them and their volunteers.
Payments such as honoraria, allowances and reimbursements made by not-for-profit organisations to their volunteers, and the tax treatment of them, are explained. The guide also discusses whether expenses incurred by volunteers are tax deductible.
Further guidance is provided for organisations on goods and services tax (GST), fringe benefits tax (FBT) and pay as you go (PAYG) withholding obligations that may arise on transactions involving volunteers.
The guide was last issued in March 2005 and the new edition contains the following changes:
- The GST registration threshold increased from $100,000 to $150,000 for not-for-profit organisations.
- The threshold for withholding from a supplier that does not provide an Australian business number (ABN) increased to $75, excluding any GST. Previously this was $50.
- The ABN withholding rate decreased from 48.5 per cent to 46.5 per cent.
- A valid tax invoice is not required in order to claim GST credits for purchases not exceeding $82.50 (GST inclusive). Previously this was $55.
To view the new Volunteers and tax guide visit the Australian Taxation Office website
www.ato.gov.au or order a hard copy by phoning 1300 720 092, quoting the identification number 4612.