If your church is registered for GST then you need to consider the impact on both the money that is collected and the expenses that are incurred.
A great resource in this regard is the Church Finance Handbook that Saward Dawson, an accounting firm in Melbourne, has compiled. Within this handbook is a specific section on GST which provides an overview of the general requirements to charge or claim GST, exemptions for churches, and examples of church-specific transactions.
According to the GST Handbook, donations, gifts, tithes and offerings are generally not subject to GST as they are not a payment for "supply" (the payer receives no material benefit). Such payments must be unconditional.
But what about all the other types of money that is collected, such as from the youth group, a church dinner, family camp, or other events?
You need to consider each type of income and whether it falls under the available exemptions, otherwise you need to include GST in the amount charged or collected.
It is worth noting that just because the church has a tax invoice that shows GST was paid on certain expenditure does not mean there is an automatic entitlement to claim back that GST. There are certain circumstances where this is not permitted.
To help you determine and document these decisions we have put together a GST worksheet. This resource walks you through the exemptions and, when completed, will form a record of the decision regarding GST that can be filed and produced in the future should you ever need to produce evidence of a decision.
Click here to download the worksheet
Note: this worksheet can be used by your church if you meet the three assumptions noted on the front page
This worksheet has been prepared on the basis of information available at the date of preparation. The information is general in nature and is not intended to be taken as substitute for specific professional advice. We recommend that advice be sought on specific issues prior to acting on transactions affected.
Ellenbrook Baptist Church has been using BBSS to meet our book-keeping and human resources needs for some years now. The BBSS staff are friendly, knowledgeable, and always available to help. Having access to BBSS' expertise greatly simplifies our church's administration.
- Rick Fletcher - Lead Pastor - Ellenbrook Baptist Church
As a sole Pastor, being able to leave the payroll, bookkeeping and financial compliance issues to Baptist Business Support Services has allowed me to focus more on the work of pastoring people instead of administering a church. This is innumerably beneficial to me, the church and the wider community.
Nick Martin - Pastor - Karratha Baptist Church
We have genuinely been grateful and delighted with the support and service we've received from the BBSS team. Nothing's too hard for the team, they know their stuff which takes away most of the worry from me.
Glenn D'Vauz - Treasurer & Board Member - Riverton Baptist Community Church
The team at Baptist Business Support Services have helped our young church plant to thrive by taking care of the behind-the-scenes work, so we can focus on ministry with people. And I really appreciate that they are always on hand to answer my questions. We consider them an integral part of our team.
Dan McGrechan - Pastor - The Sanctuary Community Church
BBSS delivers professional and courteous business service. Their care and personal touch makes them feel like part of church team rather than external consultant. In Australia’s legislative and ever changing society it is essential to utilize talented and informed organisation like BBSS.
Shaun Krause - Administration Manager - Geraldton Baptist Church
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- James Middleton - Lead Pastor - Austin Cove Community Church
Baptist Business Support Services (BBSS) have been amazing in the transition to look after ABM bookkeeping, payroll, HR, online receipting and so much more. I have found the team so helpful and timely in responding to questions and making financial statements available. I would highly recommend BBSS to any church or not for profit organisation.
- Rev. Mark Wilson - National Ministries Director - Australian Baptist Ministries
Over the many years we have been working with Baptist Business Support Services, they have been an invaluable support to us with our bookkeeping and payroll. They are on top of technology and constantly reviewing their processes to improve efficiency. Staff are friendly and always willing to spend time helping where needed.
- Deanne Dunlop - Business Manager - Parkerville Baptist Church
Baptist Booking Support Services have been super helpful in normalising our accounting processes and helping us develop proper processes. The team have been responsive whenever we have a need or when we need expertise as we have streamlined our financial practises. BBSS is an invaluable resource that we would be happy to recommend to others.
Steve Ingram - Senior Pastor - Lake Joondalup Baptist Church
Parky Baptist Church have been using BBSS (Baptist Business Support Services) for the past seven years. They are a one stop shop for all things financial management and compliance and has given PBC Inc. the confidence to focus on growing a healthy church, knowing that BBSS has our back.
- Bruce Watkins - Treasurer, Leadership Team member - Parkerville Baptist Church
BBSS has taken a phenomenal load off the shoulders of my staff. Having the peace of mind knowing the College bookkeeping is in competent and experienced hands, has afforded us the time to focus on other projects which facilitate growth in the College. I would recommend this package without any hesitation. BBSS has taken a phenomenal load off the shoulders of my staff. Having the peace of mind knowing the College bookkeeping is in competent and experienced hands, has afforded us the time to focus on other projects which facilitate growth in the College. I would recommend this package without any hesitation.
- Lisa Anne Potgieter - College Principal - Atlantis Beach Baptist College
We called BBSS when our volunteer treasurer started to drown in all the compliance. The transition to BBSS was easy and the staff have been really responsive and professional. They listen to our needs but they’ve also been very helpful in helping us plug some gaps we didn’t even know we had. I feel very confident partnering with them.
- Alex Huggett Senior Pastor - Bentley Baptist Church
I am so thankful for the service of Baptist Business Support Services. BBSS understand churches, their needs and their pastors. In my highly transitional community BBSS provided reliable, consistent, and excellence in payroll, bookkeeping and compliance issues. When I don't understand something BBSS are happy to help out without embarrassing me with my lack of knowledge.
Gavin Douglas - Pastor - Tom Price Baptist Church
Several years ago our church switched to using BBSS services to handle our bookkeeping requirements. This was to ensure that we adhered to ever-increasing compliance and reporting requirements, and to free up valuable time for our ministry and support staff. It’s proven to be a very wise move that assists greatly with the financial stewardship of our Church – and in particular makes life so much easier for our church Council.
Steve Groves - Treasurer - East Fremantle Baptist Church