GST registered provider for NDIS

Question:

My client is a registered provider for NDIS and has the GST concession as a NFP entity. Currently registered for GST

Major incomes are from government funding.

The question is whether this business can still claim a GST credit for expenses, such as rent and general business overhead expenses, for running a business.

ATO website does not really show specific examples on this case. Please provide a link if you find any.

Answer

If your client is registered for GST, you need to consider….

Many supplies under the NDIS are GST free, but some are not.

It is possible to claim input tax credits (ITC) on GST free supplies.

Regarding expenditure  –    if the outgoing has been incurred in earning the NDIS income, an ITC may be claimed.

You need an eligible tax invoice to claim an ITC.

As these are general principles, the ATO has not provided examples specific to the NDIS.

Refer to the ATO Community Page, which has some discussion on the NDIS topics.