5.6.1. Supporters Club : Tax and Donations Information

Donations and Payments by SLSQ Supporters Clubs – Income Tax and GST Considerations

Club Leases & Sub Leases

• Most SLSCs lease their premises from State or local government. They then sub-lease a designated area to their Supporters Club.
• There are a variety of lease documents in place between Surf Life Saving Clubs and Supporters Clubs with wide ranging structures and requirements with respect to rent and donations.
• Some of those structures, particularly where the lease requires the Supporters Club to make a donation to the Surf Life Saving Club, may give rise to GST and income tax deductibility issues.

Action Required

• Clubs should review the lease agreement between the Surf Life Saving Club and the Supporters Club for a clause that requires a donation to be made by the Supporters Club to the SLSC.
  • If there is no clause requiring a donation then no further action is required.
  • If there is a clause requiring a donation then refer to Point 3.

Recommendation

• As SLSQ is only able to provide general guidance given each club’s arrangement and circumstances are unique, we are not able to provide specific advice.
• As such If your lease includes a clause regarding donations (particularly where a donation is required i.e. it is not voluntary) then SLSQ suggests the club talk to its auditor or tax agent for further advice.