The Australia Institute has made factual errors in attempting to score political points.
The left-wing political lobby group says that there is a "loophole" which would allow political parties to claim the same GST-free status as charities. The Institute claims that this would mean that "caviar served at a political party dinner for corporate donors will be GST-free whilst the snags at the local child care centre’s regular Saturday morning sausage sizzle and handmade furniture from a sheltered workshop will attract the new tax."
This is false. The GST Act provides that the non-commercial activities of charitable and gift-deductible entities are GST-free.
Nothing in the GST Act makes political fund-raising dinners GST-free. They would either be subject to GST or input taxed.
A child care centre would buy food for a sausage sizzle GST-free. Child care centres under the $100 000 registration threshold would not charge GST on sausage sizzles.
Sales from sheltered workshops are currently subject to wholesale sales tax. Commercial sales of furniture in competition with other furniture makers will be subject to GST.
MELBOURNE
24 May, 2000
Media contact: Richard Allsop (03) 9650 7274