The Australian Taxation Office has clarified that religious institutions must register for GST when their turnover reaches AUD 150,000, with taxable sales and certain GST-free religious activities included in the GST turnover calculation, while genuine donations are excluded.
The Australian Taxation Office (ATO) has issued guidance on 24 August 2026, clarifying the GST obligations of religious institutions. Like other not-for-profit organisations, religious institutions must register for GST if their GST turnover reaches AUD 150,000 or more.
If a religious institution is not registered for GST, it should regularly review its current and projected GST turnover. Generally, if the projected GST turnover is AUD 150,000 or more, the institution must register for GST within 21 days.
Income included in GST turnover
When working out whether registration for GST is required, some types of income must be included in the GST turnover calculation.
Taxable sales
Religious institutions registered or required to register for GST generally must charge GST on taxable sales in Australia, including membership fees, merchandise, wellbeing programmes, sponsorship and advertising, food and beverage sales, venue hire, and certain fundraising events.
GST-free sales
If the religious institution is registered with the Australian Charities and Not-for-profits Commission (ACNC), sales that are integral to the practice of the religion may be GST-free.
Although these activities are not subject to GST, the related sales must still be included when calculating GST turnover; examples include worship services, Sunday School, weddings, funerals, baptisms, religious retreats and Bible study groups.
It is important to note that only services that are integral to the practice of that religion are GST-free. Related commercial activities or ancillary services may not qualify for GST-free treatment.
Income excluded from GST turnover
Some amounts are excluded when calculating whether the AUD 150,000 GST registration threshold has been reached:
- genuine gifts and donations made voluntarily, where the donor does not receive a material benefit in return, are not subject to GST and are excluded from GST turnover calculations
- certain supplies may be input taxed and excluded from GST turnover calculations, such as an eligible fundraising event that an endorsed charity chooses to treat as input taxed.
Example: calculating GST turnover
A religious institution’s current GST turnover (which is the current month plus the previous 11 months) includes:
- AUD 90,000 in genuine donations
- AUD 50,000 from hall hire
- AUD 110,000 from religious retreats that are GST-free.
The donations are excluded from GST turnover calculations. However, the hall hire income and GST-free religious retreats are included.
The institution’s GST turnover is AUD 160,000 (AUD 50,000 + AUD 110,000). Therefore, the institution must register for GST unless the projected GST turnover (the current month plus the next 11 months) will be below the AUD 150,000 turnover threshold.
