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Thursday, 11 May 2000
Page: 16378

Mr Andren asked the Treasurer upon notice, on 4 April 2000:

(1) Is he aware that the New Children's Hospital at Westmead raises approximately 11% of its annual running costs from community fund raising activities such as selling clip-on bears on Bandaged Bear Day.

(2) Is he aware of the hospital's concerns that the GST will either have to be added to the $3 donation usually given in exchange for a bear, or be absorbed into the $3 donation, thus losing 30 cents per donation.

(3) Will the Government collect GST through these types of fund raising activities; if not, how will such activities be exempted from the tax.

Mr Costello (Treasurer) —The answer to the honourable member's question is as follows:

(1) Yes.

(2) I am aware that the Hospital has sought clarification on the GST treatment of donations given in exchange for a clip-on bear.

(3) The President of the New Children's Hospital has advised that the bears cost $0.54 each, and that persons purchasing the bears for $3.00 do not intend to purchase an item worth $3.00 but rather are making a donation to the work of the hospital. Other examples of items of insubstantial value that have the nature of a receipt are things like red noses and daffodil pins.

In these circumstances, the supply of the bears will be in the nature of a receipt and will not be subject to GST.