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GST Clauses for Funding Agreements and Grants for Non-Government Organisations who are not registered for GST (as endorsed by the Federal Attorney General's Department, 30 May 2000)

A. ORGANISATION TO HAVE AN AUSTRALIAN BUSINESS NUMBER

A.1 The Organisation acknowledges and agrees that it is a precondition of entitlement to funding under this agreement that:

(a) it must have an Australian Business Number ("ABN"); and

(b) it must correctly quote the ABN to the Commonwealth.

Note: Under the A New Tax System (Pay As You Go) Act 1999 ("PAYG Act") the Commonwealth may be obliged in certain circumstances to withhold from payments to you 48.5% of the payment and to remit to the ATO the amount withheld. The PAYG Act provides that where such an amount is withheld and remitted to the ATO, it is taken to discharge to that extent the liability that the Commonwealth owes to you.

B. WHERE AN ORGANISATION IS NOT REGISTERED FOR GST [for use with the RCTI clauses]

X.1 The parties note:

X.1.1 the operation of the A New Tax System (Goods and Services Tax Transition) Act 1999,

X.1.2 the commencement of the A New Tax System (Goods and Services Tax) Act 1999 (the GST Act) on 1 July 2000;

X.1.3. that the Organisation may be liable for tax under the GST Act in relation to transactions under this Agreement.

X.2 The amounts payable to the Organisation under this Agreement as set out in the Schedule ("the Original Amounts Payable") do not include an amount to cover any liability of the Organisation for Goods and Services Tax (GST) on any taxable supplies under this Agreement as determined under the GST Act.

X.3 The Organisation may apply to the Commonwealth in writing, to increase the amounts payable ["the Original Amounts Payable"], to the Organisation as set out in the Schedule, in the event that the Organisation commences to make a taxable supply.

X.4 If required by the Commonwealth, the Organisation will provide to the Commonwealth access to GST returns, any GST assessments and accounting records to support any increase in the Original Amount Payable that may be sought.

X.5 Subject to X.5.1, the Organisation agrees that the amounts payable to the Organisation ["the Original Amount Payable"] as set out in the Schedule, includes the benefit of any reduction in or removal of taxes, duties or charges which impact on the costs to the Organisation in performing this Agreement.

X.5.1 Sub-clause X.5 does not apply to an organisation endorsed by the Australian Taxation Office ("ATO") as an Income Tax Exempt Charity ("ITEC"), where written confirmation of ITEC endorsement from the ATO is provided to the Commonwealth by the Organisation immediately on receipt.

X.5.2 Where written proof from the ATO of ITEC status is not provided by the Organisation to the Commonwealth, the Commonwealth may reduce the Original Amounts Payable as set out in the Schedule by 0.1 per cent, effective from the date of effect of this Agreement.

Recipient Created Tax Invoices (RCTI)

D. COMMONWEALTH TO ISSUE RECIPIENT CREATED TAX INVOICES

Y.1 Where the requirements set out in sub-clauses Y.3 to Y.9 (inclusive) are met, the Parties agree that the Commonwealth will issue Recipient Created Tax Invoices ("RCTI") in relation to the taxable supplies specified in the Schedule. Where the requirements of this clause are not met, or where the requirements of GSTR 2000/10 cease to be satisfied, the Organisation will issue tax invoices in accordance with sub-clause Y.2.

Y.2 Subject to sub clause Y.1, the Organisation agrees to issue the Commonwealth with either:

(a) a tax invoice in accordance with the GST Act; or

(b) a document satisfying the minimum information requirement as set out in GSTR 2000/3 to entitle a recipient of a taxable supply to claim an input tax credit without holding a tax invoice; in relation to taxable supplies made under this Agreement.

Y.3 Where the Commonwealth issues an RCTI, the Organisation must not issue a tax invoice in respect of the supplies to which the RCTI relates.

Y.4 The Organisation acknowledges that it is registered and undertakes that it will immediately notify the Commonwealth if:

(a) it ceases to be registered; or

(b) it ceases to satisfy the requirements of GSTR 2000/10.

Y.5 The Organisation must have an ABN (Australian Business Number) which it must quote to the Commonwealth for inclusion in the RCTI.

Y.6 The Commonwealth acknowledges that it is registered and undertakes that it will forthwith notify the Organisation if:

(a) it ceases to be registered; or

(b) it ceases to satisfy the requirements of GSTR 2000/10.

Y.7 The Commonwealth must not issue a document that would otherwise be an RCTI on or after the date when either the Commonwealth, or the Organisation, as the case may be, fails to comply with any of the requirements of GSTR 2000/10.

Y.8 The Commonwealth will, within 28 days of determining the value of the taxable supply or supplies to which the RCTI relates, issue to the Organisation a copy of each RCTI and will retain the original of the relevant RCTI. FaCS may send any RCTI by facsimile.

Y.9 The Commonwealth will issue to the Organisation any adjustment notes in relation to adjustment events within 28 days of the adjustment event to which the adjustment note relates. FaCS may send any adjustment note by facsimile.

Y.10 In this clause "adjustment note", "adjustment event", "supply", "Recipient Created Tax Invoice", "registered", "tax invoice", and "ABN" have the same meaning as in the GST Act.