The South Australian Libs hope the dollars will soon be rolling in. They might need to axe some key personnel first.
Sometimes it’s best not to put things in writing. The South Australian Liberals seem set to soon make this discovery.

Their controversially appointed State Party Treasurer, Leigh Davis,
circulated a fundraising handbook recently that strikes us as being a
little short on the subtlety in some parts. Indeed, it might do
more harm than good

This is an interesting passage for students of ethics that might also interest other political parties:

“It is very important to nurture, nurture and nurture all donors.
Depending on the level of giving will vary the level of nurturing.

“Types of nurturing that can be utilised are…

  • Private briefing with Ministers/Shadow Ministers
  • Visits to Parliament House”

This direct mail hint strikes us as a little obvious: “When
printing the signature, use blue ink to impersonate a ballpoint pen
signature, it adds to the authenticity to the letter”. D’oh!

How will the Libs convert potential donors to donors if this is they
way they describe their recalcitrance: “Some will not give
readily. They require cultivation… Like children, they do
not respond to the first request”?

Surely this should be second nature for everyone in politics: “Use truthful statements and facts”?

And why should Liberals – of all people – need such a detailed GST
guide. Surely they understand their own tax? Why would they
have been so keen on it for so long if it was complicated or could be
misinterpreted – with possibly politically embarrassing consequences.

Still, for what it’s worth, here it is if you want a laugh:

Liberal Party (SA Division) – Fundraising Manual
February 2004

Political Fundraising – Electoral Level

Political Fundraising is not easy. No formula has ever been
devised to transform a fervent, even desperate wish into instant

The role of Fundraising is of vital importance for every Member of
Parliament. It is a continuous process for the Branches,
Electorate Committees and the Member.

Fundraising cannot be a haphazard impulsive action, imposed at the last
moment to respond to a crisis situation. Fundraising is an
exercise in discipline and good planning.

The following will outline how you should go about Fundraising in your Electorate.

The Fundraising Plan

Firstly you must develop a Fundraising Plan. To develop this you
must set your target – how much must be raised. When this is
established a Fundraising Committee or team needs to devise a strategy,
encompassing methods, tactics, donor lists and administration.
The plan will clearly set out the overall strategy.

Organising personnel

The Fundraising Plan will to a great extent indicate what personnel are
required to satisfy the target amount and administrative workload.

1. Electorate Committtee

It is usually not the role of the Treasurer to undertake the management
of the Fundraising Plan. The Treasurer’s responsibility will be
to monitor its activity and to oversee the expenditure incurred by the

2. Fundraising Manager

The Fundraising Manager or Chairman is responsible for all aspects of
the Fundraising Plan. The selection of a Fundraising Manager
requires careful thought as this role will require a well-motivated and
active person

Qualities: The Fundraising Manager should:

  • Be a person who has time to devote to the job
  • Be able to source money in the Electorate
  • Have a good reputation in the community
  • Have the drive and personality to get the money

Business executives, bankers, lawyers or other people with skills in raising money, handling and reading people are best suited.

Responsibilities: The Fundraising Manager will be required to:

  • Oversee the planning and implementation of the Plan
  • Be skilled or capable of approaching respective donors
  • Manage other volunteer supporters and projects
  • Administer and monitor fundraising projects and lists

The Fundraising Manager should be supported with a team or committee to
assist in the workload or specialise in fundraising ventures. Two
basic committee models can provide two alternative or joint methods of

a. Administration Committee who assist the Fundraising Manager by
specialising in specific methods. Your strategy may be to reach
all Liberal voters in your electorate and solicit funds. Your
tactics may employ direct mail, telephone requests or public activities
such as garage sales or raffles. This committee will assist in
providing the logistical support – writing, printing, mailing,
telephoning, list compilation and list records. The Fundraising
Manager needs to administrate and assign job responsibilities to ensure
the programs are achieved.

b. Professional solicitation committee or jobs committee that consist
of members representing different industries such as a doctor,
insurance, lawyer, building, business executive etc. Each Member
is set a target and required to raise this money from individuals in
the electorate or outside, who work in their industry or who they know
could make a donation. If your annual target is $10,000 a
ten-member committee is expected to raise $1,000 per member.

If your plan involves a series of special events, such as dinners or
the other major functions as special events, your sub-committee need to
be appointed to handle these projects. Further details regarding
events are provided later in this document.

3. Branches

In large, well-organised Electorates, the Fundraising Manager may plan
the fundraising organisation on Branch activities by setting branches
specific target levels for the Electorate Committee. This may
entail branches having full responsibility for their target amount (or
designing events for Electorate wide events) to share the overall work
load manually.

Your local conditions will resolve what structure is practical and achievable for fundraising money.

Prospecting Donors

The next step is to determine who will be your potential donors, how to
reach them and by what method. Firstly, we will examine types of
donors, prospective donors and lists.

1. Local Membership

Traditionally, local Liberal Party Members are a good source of
income. This audience should not be neglected. For as
members, their willingness to support the Party will be of some
fundraising value.

However, this audience historically carries the major burden of the
fundraising process for the Party. By concentrating on members
this creates some problems.

a. As this audience is of small numerical size, its capacity to raise
enough money to properly finance the needs of the Party is of marginal

b. To constantly expect the Members to donate and pay for numerous events/activities is unfair and unrealistic.

c. Within every electorate, a sizeable minority vote Liberal. If
these people believe in the Party, the opportunity of supporting it in
other ways can be capitalised on. The remaining methods of
identifying potential Liberal donors represents a massive future
resource. It is this untouched audience that is important to the
fundraising program and do not forget that fundraising is also an
important method of communicating to the Party and the members message
to the electorate.

2. Historical Donors:

Preview lists of non-party members who have donated in the past.
If you do not have a list, generate one. Fundraising must not be
approached as a one-off activity. To be effective, it must be
continuous. In order for donors to give on an annual basis you
must NURTURE, NURTURE, NURTURE. By doing this it will provide you
with a regular source of income. An Electorate can never have too
much money.

3. Individual donors:

The Fundraising Committee should prepare a list of potential
individuals who can be personally approached. This should be
created on the basis of:

a. Friends who support the Party
b. Neighbours
c. Known Liberal supporters (voters)
d. Business people and other professionals in the Electorate
e. Other people who support the Liberals or have benefited from the work of Members

4. Community Groups:

Members of the Fundraising Committee may be members of other community
groups. By approaching fellow Members of other community groups,
who are supporters of the Liberal Party and sympathetic to the
financial needs of volunteer organisations, a further fundraising
opportunity may be realised.

5. Small Business:

Each electorate usually has a number of shopping centres and small
businesses. As the Liberal Party is a strong advocate and
supporter of small business, these people should be approached.
By approaching individuals who have a vested interest in the community
and regular contact with the residents, it also provides the Member
with a greater awareness and intelligence on local issues. Each
business in the electorate should be personally solicited.

6. Listing:

To gain further reach amongst the electorate, your Fundraising Plan may wish to reach the community at large.

By using direct mail or other tactics you can gain access to thousands
of houses and individuals if you write to supporters you would not
normally be able to identify. The methodology and coverage of
this type of program has numerous implications. For example, the
Fundraising Programme may incorporate this by:

a. Gaining access or selecting individuals based on professional categories in your electorate
b. On a regional sub-division basis
c. Mail or solicit electorate wide

This approach in its initial stages is trial and error. Many
people you will reach will not be Party supporters and many more will
not respond to your request. The important aspect of this
approach is:

a. It does not identify prospective donors or supporters that can be developed with time
b. It does disseminate Party information and the existence of an active local Liberal Party
c. It will raise money from people who you would not normally be able
to be approached. If 4% of your Electorate responds, it’s a
successful venture. Planning your investment against, your
expected return is very important.

7. The Committee Members:
The very first donations should come from the members of the
Fundraising Committee. If they will not donate, how can they ask
others to?

Donor Redords

A great deal of effort should go into maintaining a donor file or
record. It would be a great loss to lose any information on
individuals who support the Liberal Party.

Not only are these donors and prospective donors the future financial
supporters of the party, but they can also provide access to other
resources the Member or the electorate may require – membership,
volunteer work and professional advice.

When developing a database for donors, the level of information
available should also be considered. You may maintain a basic
database or a more comprehensive profile. The information
recorded will cover such points as:


Address (home/business)
Value donated
When donated
Reason for donations (if available)


To provide a more comprehensive profile, the opportunity of recording a
more personal information base will have future benefits – increased
donations, issues that motivate the donor, future advice and contacts
for the Party

Spouses name
Business title and occupation
Membership or other community, professional and special interest groups
Political/economic interest

This information should be stored on Feedback or another database
system. By maintaining and updating this information, a massive
long-term resource is available for fundraising and involvement in many
other Party activities i.e. future donations, newsletters, functions,
advice or possible membership.

Fundraising methods

A variety of fundraising methods are available. Each one will
need to be considered in accordance with the objective and
resources. Factors such as costs, manpower, timing and the
projected response rate will govern methods to be conducted.

1. Direct Solicitation:

Person to person approaches are the most effective. The
fundraiser is required to be equipped with knowledge and a selling
tactic to confront the prospective donor.

Certain procedures and methods should be observed with this
approach. By pre-planning and developing a suitable tactic, high
levels of success are achieved.

  • Target setting

Each prospective donor should be approached with a specific donation
mount. Obviously a doctor can donate more money than a
pensioner. Donors should be classified by amount.

Most potential donors have no idea what a reasonable donation is, that
is why many never give. If they are not asked for a specific
amount they may be embarrassed to give if they believe it is too
little, or if they are being over-generous. Identify potential
donor levels. i.e:

$50 – $100
$100 – $500
$500 – $1000
$1000 plus

Group Presentation

The opportunity to speak before small gatherings or at a meeting of
other community provided another avenue. Your speech will
probably not encourage people to donate immediately. However, you
can present a broad story and follow up individuals personally later by
phone or letter.

3. Fundraising Kits

When conducting a direct solicitation it is most beneficial to be
prepared – know your prospective donor and carefully explain why they
are being approached.

By preparing a small presentation kit, they are able to see what you
wish to achieve and that you are approaching the total campaign with
commitment and professionalism. The fundraising kit should

  • Who are you?
  • Why do you need to fundraise?
  • What do you do with the money?
  • Campaign literature and Party information
  • Information about the Party in the electorate
  • Receipt book

The visual aids can assist in the presentation and directly show how their donation will be constructively used.

4. Letter Box Drops

Another method which may create a response is to prepare a letter or
piece of print material explaining and requesting
donations. This is not always an effective method, as it is
not personalised. However, if other campaign literature is being
distributed by letterbox drop, the inclusion of such a request may
generate some money.

The impact, cost and response to this method will need to be considered for this approach.

5. Special Events

This method of raising money is usually highly successful, but requires good planning.

Events usually divide into five distinct categories:

  1. Fundraising
  2. Voter support
  3. Membership drives
  4. Media presentation
  5. Motivation of members and volunteers in the Party

To tactically address each objective, differing events and forms of
presentation are required. Listed below are a random group of
events that have been successfully employed by Members and the Party in
the past.

Whilst each event will have a primary objective (i.e. to raise $10,000)
it will also create a secondary effect (i.e. attract new members,
motivate workers etc)

  • Theatre parties
  • Dinners
  • Lunches
  • Brunches
  • Coffee/tea parties
  • Raffles
  • BBQ’s
  • Function shows
  • Art Shows
  • Roast of Members
  • Public debates
  • Auctions
  • Joint events with other community groups

The benefit of this approach has a secondary dimension in comparison
with other methods. All other fundraising methods require an
emotional or intellectual motivation to donate. Special events
provide an extra benefit – the presence of a function or the purchasing
of an item through a live or silent auction.

6. Direct Mail

If you can obtain listings of people in your electorate or construct
from personal knowledge an extensive list of prospective donors,
personnel/direct mailing is a great opportunity of reaching them and
measuring its direct effect.

Direct mail if done properly gains direct access to the home and the
individual. If targeted properly, it will talk to them about
specific issues that affect them.

The writing of direct mail fundraising letters should be done by the
fundraising manager/Electorate Committee president or a well-known
friendly community leader.

There is no magic formula, but from historical experience certain procedures should be observed.

– Personally address the envelope and letter to the targeted donor/reader
– Use a stamp not a franking machine. This will discriminate the letter from other commercial or junk mail
– Be clear about the reason you are writing – that is requesting money and why
– Keep the reader interested. This is the copy style. Easy
to read paragraphs. Highlight important statements (capitals,
underline, PS). Tell a story and thread it through the letter.
– Use truthful statements and facts. Ask questions and answer them.
– Use concise, simple language. Simplicity works best.
– Make sure the letter is always personalised. Use words like “you” “or” “we” where appropriate

Involve the reader

– Be visually descriptive, use action words
– Be direct, don’t beg, don’t moralise
– If you present problems, offer Liberal Party solutions
– Keep it concise and to the point

Direct mail letters are usually more successful if they are more than
one page long. It creates an impression that you have something
worthwhile to tell them. The person writing must not be the
candidate, obviously the campaign director or fundraising manager are
best suited. When printing the signature, use blue ink to
impersonate a ballpoint pen signature, it adds to the authenticity to
the letter.

Each letter should also contain a response coupon. The coupon should contain the following information:

– Where to send the money and to whom
– How to make the cheque out
– Name and address of sender
– How much to send. Provide a choice of price boxes

This way the prospective donor knows what optional levels of donation
are expected. No request for under $25 should be made, i.e. NOT $5

Direct mail is a programme that can be controlled and measured.

The more you use direct mail and communicate with your donors, the more successful it becomes.

In politics, the electorate is naïve about political parties and their
funding. The more we tell them and cultivate them, the far
greater opportunity of regular support can be achieved.

In addition to raising funds, direct mail as a direct consequence of
its communication raises the public consciousness of local issues and
the Party’s endeavours. Whilst your primary objective is to raise
money, it will raise awareness while imparting information.

7. Target Marketing

As an adjunct to direct mailing, the more you become familiar with its
application, effectiveness and improve the mailing lists, the more
tactical opportunities it has.

As local issues arise that will create an emotional and positive
response, the more effective it becomes. Mailing to the medical
profession (i.e. doctors, nurses, administrators) on specific issues
(opposition plans o exercise greater control over the medical
industry), the higher the response rate to the letter. The
evidence that the Liberal Party has a position on this proposal that it
cares and wants to do something to correct it, the more successful the

As a tactical weapon direct mail is a great tool to reach many people,
reach them quickly, tell them what the Liberals will do and how they
can help.

The numerous and refined your lists are, the greater the effect it will
have. Profiling your donor lists provides access to this

8. Telephone response

Using a telephone as a method of raising funds has benefits and limitations.

Its primary benefit is to follow up personally any direct mail
programmes. By calling recipients of the direct mail programme,
an impression of concern is impressed on the recipient. It also
requires the individual to either refuse or “pledge” your campaign
money. It forces a decision of commitment in a personal,
timesaving manner.

If utilising a telephone programme, the procedures for running a telephone bank should encompass:

– Number of telephones, location and cost
– Compiled lists, number of calls per telephone
– When to call
– Appointment of telephone coordinator
– Volunteer workers
– Prepared telephone operators script

9. Fundraising in-kind: Contributions

Rather than an approach for money, your Electorate Committee may
approach people for the donation of goods and services. Their
support in providing facilities for the campaign office, artwork,
printing etc not only assists in financial terms, it also provides
skilled, professional advice to enhance any aspect of the campaign.

Donor Behaviour

To help Members understand the problems and opportunities that exist
with fundraising, a brief statement on psychological factors
influencing individuals when considering donation is given below.

Why people do give

  1. The most important reason is they believe in the Liberal
    philosophy. Channelling this attitude into a behaviour commitment
    is the objective of fundraising
  2. They believe the candidate/Member and Party will be able to help them, their community, State or Australia
  3. Habit: Once committed, people will give regularly – hence it is important to maintain regular contact
  4. Association: To be part of a group or on familiar terms with decision makers (i.e. the candidate/Member)
  5. Because someone asked them

Why people don’t give

  1. Fear of displaying “emotional” commitment
  2. A fear of being used and forgotten. Some people need recognition and assume that giving support entitles them to power
  3. Most people do not know how much or little to give. Rather than be embarrassed, they do not give
  4. Many people will not give unless they think you can win
  5. Some do not give because the appeal is too vague and not specific
  6. Some will not give readily. They require cultivation (ongoing
    prospective list). Like children, they do not respond to the
    first request

Thanking donors
Every donor must be recognised and thanked for the contribution. This can be included with their receipt.

By thanking people you are building good will and empathy with their
support. The next time you ask them for money, their willingness
to assist will be made easier.

It is very important to nurture, nurture and nurture all donors.
Depending on the level of giving will vary the level of nurturing.

Types of nurturing that can be utilised are:
– Special invitations to “free of charge” functions
– Personalised thank you letters
– Personalised Christmas cards
– Private briefing with Ministers/Shadow Ministers
– Visits to Parliament House
– Provide network opportunities
– Have them over for lunch or dinner at your private home

Ongoing nurturing will provide short and long term benefits. You
need to provide as much as possible a win-win opportunity for all

The Treatment of GST in Fundraising

With the upcoming Federal election, fundraising will feature
prominently in Party activities over the ensuing months. This
will immediately bring party branches, Electorate Committees, and
campaign teams into contact with the GST and its effect on the manner
in which invitations, advertising and accounting matters are handled in
the future.

This information has been prepared in two parts, the ‘GST Primer’ and
‘The Treatment of GST in Fundraising.’ The GST Primer is intended
as a quick reference guide and is brief both in its style and
information, whereas The Treatment of GST in Fundraising is intended to
supply a more complete understanding of the issues affecting
fundraising. It is highly recommended that readers should
acquaint themselves with the content of both documents to gain a
complete understanding of the relevant issues.

The information contained herein should allow branches and Electorate
Committees to address the critical areas of their financial
transactions, documentation and records to comply with the GST
legislation. However, should you require any further assistance,
please feel free to contact the Secretariat to discuss the matter,
however, please ensure that you have first consulted the briefing paper
as attached.

GST Primer

This note provides a quick reference guide for use by unregistered
non-profit sub entities (NPSE’s), which at this stage includes all
branch and Electorate Committees and should be read in conjunction with
the more detailed paper in order to fully appreciate all the issues
involved with the treatment of GST in fundraising.

  • The event should be advertised as ‘input-taxed event’ or
    alternatively, the notice/advertisement should indicate that ‘the cost
    does not include GST, as the function is an input-taxed event’
  • The entity will not be liable to pay any GST on the event but it will
    also not be able to recover any GST which may have been included in the
    cost of goods and services purchased from suppliers
  • If the entity is raising invoices for these events, they should not
    produce a ‘Tax Invoice’. This is because GST is not payable on
    the event
  • The entity must retain accurate records for each event held which must be retained for at least five years
  • The entity should not be stating that the entrance fee to any event is a ‘donation’
  • Tickets for raffles and bingo are regarded as GST free (please refer to the note in part A regarding limits and prizes)
  • The division’s ABN number should not be randomly issued but may be
    quoted to prevent the imposition of the 48.5% withholding tax

We have included an example of the type of wording and presentation
which would be suitable for invoices issued for fundraising events of
branches and conferences. This example may require modification
dependent upon the circumstances of each event, but should serve as a
reference point upon which to base your final presentation.

Should you be in doubt with regard to any aspect of the treatment of
GST in fundraising, please do not hesitate to contact the Secretariat
for assistance.

The treatment of GST in fundraising

1. Background

1.1 Non-profit sub-entities

The first concept that impacts upon the accountability for the GST is
that of the non-profit sub-entity or an NPSE, as it is more commonly
known. Division 63 of the ‘A New Tax System (Goods and Services
Tax) Act 1999,’ deals with this aspect and follows for a non-profit
entity (such as the Liberal Party) to choose to have some (or all) of
its branches, Electorate Committees and campaign units treated as
‘separate entities’ for GST purposes. If the Liberal Party
chooses to apply Div 63 to some (or all) of its separately identifiable
branches and Electorate Committees, then for GST purposes it will cease
to be responsible for these entities.

Division 63-15 allows for a branch to be considered separately identifiable if it;

a) Maintains an independent system of accounting
b) Can be separately identified by the nature of its activities or by its location
c) Is referred to in the Liberal Party’s records to the effect that it
is to be treated as a separate entity for the purposes of GST law

For the SA Division to make an election for branches and electorates to
be NPSE’s, it must itself be registered and must be a gift deductible
entity (Div 63-5). The Liberal Party is a ‘gift deductible
entity’ for GST purposes, by operation of Division 30A of the Income
Tax Assessment Act 1997 and therefore may elect to nominate certain
entities as NPSE’s, providing they meet the criteria described above.

1.2 The effect of applying Division 63

It is appropriate to consider the effect of applying Div 63 to our various branches and Electorate Committees.

Once the choice to apply Div 63 takes effect, the branch or Electorate
Committee is referred to as an NPSE and is from the date of election,
responsible for meeting the provisions of the GST Act, which includes
the issues of registration and turnover.

Where the entity’s turnover is less than the turnover threshold of
$100,000 per annum, it may choose not to register for GST.
However, registration becomes compulsory when the turnover exceeds
$100,000. This turnover level excludes the revenue received from
input-taxed events (Div 188-15). Once registered for GST, the
NPSE will have the same rights as other GST registered entities.

Fundraising Issues

The effect of the GST on the many different types of fundraising events
held throughout the Party. Many of our fundraising events require
individual advice on an event-by-event basis, mainly due to the nature
of the fundraiser and the set of circumstances, and the implications
that these trigger within the GST environment. As a Division, we
are committed to seeking the continued guidance and expertise of our
professional advisers as the application of the law unfolds over
time. It is against this background that the guidance supplied
hereunder should be read. We stress that should the readers of
this circular still remain unsure of their own individual obligations,
advice should be sought from the Secretariat before the organisation of
the event.

2. Background

Subdivision 40F of A New Tax System (Goods and Services Tax) Act
1999 (‘GST Act’) provides that a ‘gift deductible entity’ can
choose to treat supplies made in connection with fundraising events (as
defined in the GST Act) as input taxed supplies. This means that
as a gift deductible entity, The Liberal Party and its branches and
electorates qualify to organise input-taxed events. This
essentially means that no GST is payable by the attendee and no GST
credits are available for the costs incurred in the running of the
event eg payments for food and beverage. No immediate obligation
arises for the branch, electorate or the SA Division to report these
input taxed transactions in a BAS returned to the ATO, as the Division
has chosen to complete its BAS using the ‘derived from accounts’ method.

2.1 Fundraising Events

Most of the fundraising events of branches of the Liberal Party may be
treated as ‘input-taxed’ events. Therefore, when preparing for an
event, the following items need to be complied with:

  • The event should be advertised as an ‘input-taxed event’ or
    alternatively, the notice/advertisement should indicate that ‘the cost
    does no include GST, as the function is an input-taxed event’
  • The entity will not be liable to pay any GST on the event but it will
    also not be able to recover any GST which may have been included in the
    cost of goods and services purchased from suppliers
  • If the entity is raising invoices for these events, they should not
    produce a ‘Tax Invoice’. This is because GST is not payable on the event
  • The entity must retain accurate records for each event held which must be retained for at least 5 years
  • The entity should not be stating that the entrance fee to any event
    is a ‘donation’. These are treated differently in the Income Tax
    Assessment Act 1997 and do not fall within the scope of the GST Act

3. The nature of fundraising events

As the vast majority of fundraising events of the Party will be caught
by the definition in sub-section 40-165 of the GST Act, it is useful to
understand which events qualify as fundraising events. This
section reads as follows:

‘any of these is a fundraising event if it is conducted for the purpose
of fundraising and it does not form any part of a series or regular run
of like or similar events: a fete, a ball, gala show, dinner,
performance or similar event.’

As the legislation does not provide any further guidance in this
regard, it is difficult to clarify exactly what would be regarded as ‘a
regular run of like or similar events’. We have been guided by
our advisors at KPMG who have referred us to similar legislation in the
UK as an opinion reference point. The UK precedence would appear
to allow for a wide degree of exemption from the event being treated as
a ‘similar event’ and extends from a dinner-dance being regarded as
different to a gala ball, and an opera performance from a
concert. Even when events take place in the same week, follow the
same theme and are publicised in a single brochure, they may still
escape being regarded as regular or similar events and accordingly
should not attract the GST. We will advise further should this
become an issue in the future.

4. GST Free Events

Division 38-270 of the GST Act provides that raffles and bingo
conducted by charitable institutions, gift deductible entities etc are
GST free if:

a) The supply is
I. A supply of a ticket in a raffle; or
II. An acceptance of a person’s participation in a game of bingo; or
III. A gambling supply of a kind specified in the regulations; and

b) The supply does not contravene a State law or a Territory law
It will not be necessary to identify the branch or Electorate Committee on the ticket stub, as the supply is GST free.

A further word of note with regards to raffle prizes and similar type
‘gambling’ events, which impact on point (a) (iii) and (b) above, is
necessary. Please note the attached guidelines provided by SA
Lotteries/Revenue SA regarding raffles

5. Tax Invoices

Where a GST registered body conducts an event, a normal tax invoice can
be issued for the price of attendance at an event. For charges
which are less than $50 you are not required to issue a tax
invoice. A tax invoice should never be issued for a donation as
these are voluntary contributions and as such are not treated as
consideration for goods or services.

Events conducted by unregistered NPSE’s, may still have some issues in
relation to invoices and invitations. Most of these issues have
arisen as a result of businesses requesting tax invoices. After
much consultation, it is our advice that unregistered NPSE’s should
resist issuing ‘tax invoices.’ This is mainly to avoid the risk
of the recipient attempting to claim 1/11th of the cost as a GST
credit, where no GST has been remitted to the Australian Taxation
Office (the ‘ATO’) in relation to that supply. An ‘invoice’ may
certainly be issued as a matter of good accounting policy, but any
interference to an amount claimable as a GST credit should be avoided.

4. Australian Business Number (‘ABN’)

Various businesses may attempt to withhold 48.5% tax from payments to
Party units on the premise that they have not presented an ABN.
It is our considered opinion that unregistered NPSE’s should not
routinely quote our ABN for similar reasons to that given for not using
‘Tax Invoice’. However, where necessary, our ABN may be quoted to
avoid the imposition of the withholding tax.

As mentioned previously, this circular does not attempt to present a
panacea for all GST ailments and should be treated as a reference point
only. We emphasise that should any of the branches and
electorates, members or other fundraising entities of the SA Division
of the Liberal Party, require any assistance or feel uncertain about
ant issue related to this circular, please feel free to contact the
Secretariat to receive further assistance.

Invoice example

Mr Joe Bloggs


Invoice No:



Fee for attending Fundraiser