Non-profit sporting clubs are in a no-win situation under the GST, Shadow Minister for Sport, Senator Kate Lundy, said today.
“Non-profit sporting clubs, which provide unique opportunities for sporting competition and general involvement in physical activity, will be worse off under the GST, regardless of whether they register for GST or not”, Senator Lundy said.
The GST will apply to non-profit organisations with an annual turnover in excess of $100,000. This includes membership fees.
“Many of these non-profit sporting clubs will be forced to decide whether to register for GST and spend all their time and efforts on complex compliance paperwork, or not register and be unable to claim back any tax inputs credits,” Senator Lundy said.
“If a club decides not to register for GST they will have to absorb the increased costs of goods and services.
“The GST will apply to entry fees for sporting competitions, sporting equipment, uniforms, coaching clinics, venue hire, insurance premiums and affiliation fees.
“Many of these organisations struggle to raise funds through lamington drives, fetes and raffles.
“Compliance costs will soak up money desperately needed by community-based clubs participating in local sporting and recreational activities.
“Treasurer Costello claims these non-profit sporting clubs have a choice.
“Their choice is either to register and face increased compliance costs and spend their precious resources on accountants; or not register and pay higher charges for all their inputs.
“They will be worse off whatever they do,” Senator Lundy said.
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