Goods and services tax (GST) is a broad based tax of 10% on the sale of most goods and services consumed in Australia. Nonprofit organisations must register for GST if their annual turnover is $150,000 or more, and they may choose to register if their annual turnover is lower. Often granting authorities insist on GST registration before considering a grant application.
If you are registered for GST, you must include 10% GST on most, or all, of your sales. In most circumstances, you can also claim a credit for the GST included in the price of goods and services you buy in carrying on your activities. There are special rules about certain types of sales made by charities, gift deductible entities and government schools. There are a number of different ways you can structure your organisation for GST purposes to minimise the costs of dealing with the tax collection.
The Australian Tax Office has a dedicated web site page for nonprofit organisations in relation to GST. The book Tax Basics for Nonprofit Organisations is also available from the ATO free of charge and includes relevant GST material.