What is the Goods and Services Tax (GST) position when a Body Corporate/Owners Corporation pays an honorarium to an office holder?
ATO Position An office holder is performing services for the Body Corporate/Owners’ Corporation and generally will not be an employee. This will not generally be in the nature of an enterprise where the payee receives an honorarium. The honorarium is an honorary reward in recognition of the services provided on which no price may be set. The services are more in the nature of a private recreational pursuit or hobby and, in any case, there is generally no reasonable expectation of a profit or gain. The services provided by an office holder for which an honorarium is received is usually not subject to GST.
Related Questions
- What are the Goods and Services Tax (GST) implications of an unregistered Body Corporate/Owners Corporation with no Australian Business Number (ABN) which deals with a supplier with no ABN?
- What is the Goods and Services Tax (GST) position when a Body Corporate/Owners Corporation pays an honorarium to an office holder?
- Is the Body Corporate/Owners Corporation able to recover the Goods and Services Tax (GST) in levies charged to owners?
