38‑250 Nominal consideration etc.38‑250 Nominal consideration etc.

38‑250 Nominal consideration etc.

(1) A supply is GST‑free if: (a) the supplier is an *endorsed charity, a *gift‑deductible entity or a *government school; and (b) the supply is for *consideration that: (i) if the supply is a supply of accommodation—is less than 75% of the *GST inclusive market value of the supply; or (ii) if the supply is not a supply of accommodation—is less than 50% of the GST inclusive market value of the supply. (2) A supply is GST‑free if: (a) the supplier is an *endorsed charity, a *gift‑deductible entity or a *government school; and (b) the supply is for *consideration that: (i) if the supply is a supply of accommodation—is less than 75% of the cost to the supplier of providing the accommodation; or (ii) if the supply is not a supply of accommodation—is less than 75% of the consideration the supplier provided, or was liable to provide, for acquiring the thing supplied. (4) Subsections (1) and (2) do not apply to a supply by a *gift‑deductible entity endorsed as a deductible gift recipient (within the meaning of the *ITAA 1997) under section 30‑120 of the ITAA 1997, unless: (a) the supplier is: (i) an *endorsed charity; or (ii) a *government school; or (iii) a fund, authority or institution of a kind referred to in paragraph 30‑125(1)(b) of the ITAA 1997; or (b) each purpose to which the supply relates is a *gift‑deductible purpose of the supplier.

Note: This subsection denies GST‑free status under this section to supplies by certain (but not all) gift‑deductible entities that are only endorsed for the operation of a fund, authority or institution. However, supplies can be GST‑free under this section if they relate to the principal purpose of the fund, authority or institution.