Income types
Examples of common income types include:
- subscriptions
- grants and subsidies
- donations or koha
- fees
- raffle money
- trading profits
- proceeds from selling assets.
Some grants made to non-profit organisations can be an unconditional gift or donation, especially if given by charitable trusts.
Income liable for GST and income tax
The table below shows what income is liable for:
- income tax if your non-profit is not liable for an exemption
- GST if your non-profit is registered.
|
Income type |
Liable for income tax |
Not liable for income tax |
Liable for GST |
Not liable for GST |
Exempt from GST |
|
Subscriptions |
|
✔ |
✔ |
|
|
|
Donations |
|
✔ |
|
✔ |
|
|
Koha |
|
✔ |
|
✔ |
|
|
Bequests |
|
✔ |
|
✔ |
|
|
Grants |
|
✔ |
✔ |
|
|
|
Unconditional gifts |
|
✔ |
|
✔ |
|
|
Subsidies |
|
✔ |
✔ |
|
|
|
Suspensory loans |
✔ |
|
✔ |
|
|
|
Trading activities |
✔ |
|
✔ |
|
|
|
Raffles or housie proceeds |
|
✔ |
✔ |
|
|
|
Admission fees |
✔ |
|
✔ |
|
|
|
Affiliation fees |
✔ |
|
✔ |
|
|
|
Sale of donated goods or services |
|
✔ |
|
|
✔ |
|
Sale of purchased goods |
✔ |
|
✔ |
|
|
|
Sale of assets or equipment |
|
✔ |
✔ |
|
|
|
Insurance receipts |
|
✔ |
✔ |
|
|
|
Hall or equipment hire |
✔ |
|
✔ |
|
|
|
Rent received (residential) |
✔ |
|
|
|
✔ |
|
Rent received (commercial) |
✔ |
|
✔ |
|
|
|
Penalty payments (fines) |
✔ |
|
✔ |
|
|
|
Advertising or sponsorship |
✔ |
|
✔ |
|
|
|
Interest or dividends |
✔ |
|
|
|
✔ |
|
Gaming machines |
✔ |
|
✔ |
|
|
If your income is exempt from GST
If your income is ‘exempt from GST’, it's different from income that's ‘not liable for GST’. This is important when you're working out your claim for GST input tax credits on goods and services for your organisation.
Claiming input tax credits on expenses
If you're a GST-registered non-profit organisation you may claim input tax credits on expenses.
These tax credits can be claimed on expenses gained from income that's either:
- liable for, or
- not liable for GST.
You cannot claim expenses gained from income that is exempt from GST, eg renting a residential property (see the table above).
