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Should we be worried about no longer being ‘Non-Profitable’

Should we be worried about no longer being ‘Non-Profitable’. Profits must stay in the organisations – not distributed to owners, members or private people (even when you are winding up!). Your Law Society therefore does NOT have to pay Company (Income) Tax.

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Should we be worried about no longer being ‘Non-Profitable’

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  1. Should we be worried about no longer being ‘Non-Profitable’ • Profits must stay in the organisations – not distributed to owners, members or private people (even when you are winding up!). • Your Law Society therefore does NOT have to pay Company (Income) Tax

  2. GST (for those who have and haven’t done Tax Law) • It is a tax (10%) on transactions for consumers • Threshold is $150,000 in income • Excludes: GST included in sales; sales not connected with your organisation; and sales made overseas • You cross this threshold when your income for the current month and • the previous 11 months is more than $150k or more; and • the next 11 months is likely to be $150k or more. • You have to do this within 21 days from the date that this is calculated • If you are under this threshold you may still register for GST • Registration or deregistration details, although difficult to find, can be found on the ATO website • If you aren’t registered, or should be registered – you have nothing to fear! If your organisation is not registered and is not required to be registered for GST, GST should not be included in your price of your sales and you cannot claim GST credits for the GST included in the price of purchases you make in running your organisation.

  3. GST (continued): What is and isn’t included? • Gifts made to an Non-Profitable Organisation is not considered payment for a sale and is therefore not subject to GST. • Goods that are unprocessed – e.g. the raw vs cooked chicken from Coles

  4. Preventing Cash Going Missing • The more you trust, the more people have the potential to abuse • E.g. Ensure that you have a system that requires people to count the float box before and at the end of their time in charge of money coming in and out.

  5. Budgeting – I love this stuff! • Priorities! • Initial focus must be on baking the cake, not worrying about what kind of cherry will go on top! • Supply what you must deliver! • What are you expecting? • Always look for a return!

  6. Handing over to next year’s committee (many of you will be in the process of this already) • Signing all relevant bank forms • Preparing to change and submit all the relevant details that your organisation must comply with regard to certain government authorities • Thoroughly discuss what return was gained from certain (especially large) expenses.

  7. What should I do with extra funds in my account? • Investment options • Pay off existing unnecessary debt

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