Western Australian (WA) incorporated associations operate by law as not-for-profit (NFP) entities, which directly qualifies them for specific Goods and Services Tax (GST) thresholds and concessions administered by the Australian Taxation Office (ATO).

While incorporation occurs at a state level under the Associations Incorporation Act 2015 (WA), GST is a federal tax. The connection relies entirely on the association’s strict non-profit legal structure.

1. Determining the Higher GST Threshold

The most immediate relevance of being an NFP incorporated association is a higher threshold for compulsory GST registration.

The Limit: Your association must register for GST only if its GST turnover is $150,000 or more.

The Comparison: Standard commercial businesses in WA must register once their turnover hits $75,000.

Exclusions: When calculating your $150,000 threshold, you do not count genuine gifts, government grants without commercial conditions, or donations where the donor receives no material benefit.

2. Accessing General NFP GST Concessions

If your WA association crosses the $150,000 threshold or chooses to register voluntarily to claim back credits, several specialised NFP rules apply:

Cash-Basis Accounting: Associations can choose to account for GST using the cash basis regardless of their turnover size, making tracking simpler for volunteer treasurers.

Non-Profit Sub-Entities: If your association has distinct branches (e.g., a local sports club with a separate youth division or independent tuckshop), you can treat those units as separate entities for GST purposes. If a sub-entity's turnover is under $150,000, it can remain unregistered and avoid charging GST entirely.

GST Groups: The rules for creating a "GST Group" (allowing related entities to ignore GST on internal transactions) are much more relaxed for NFPs than for-profit companies.

3, Evaluating Charity vs. Standard NFP Status

The level of GST relevance changes drastically depending on whether your WA association is a standard community NFP or a registered charity. Feature / Concession Standard WA NFP Association ACNC Registered Charity

GST Registration Threshold $150,000

Raffles & Bingo Tickets Subject to standard GST rules

GST-free Donated Second-Hand Goods Subject to standard GST rules

GST-free when sold

Fundraising Events Subject to standard GST rules Can elect to be input-taxed Non-Commercial Activities Subject to standard GST rules

GST-free if sold below market cost

To access the advanced charity concessions listed above, your association must formally register with the Australian Charities and Not-for-profits Commission (ACNC) and obtain an ATO endorsement.

4. Navigating Grants and Sponsorships

Many WA associations rely heavily on external funding. If your association is registered for GST, the way you treat this money matters: Financial Grants: If you receive a government grant that requires you to deliver a specific service, report, or project, it is a taxable supply. You must remit 1/11th of that grant to the ATO. Sponsorships: If a local business sponsors your club in exchange for advertising (e.g., logos on jerseys or banners), this is considered a commercial transaction. You must charge GST on the sponsorship amount...