Taxation law and Financial Loans

Q: When should a P&C complete a BAS (Business Activity Statement)?

A: Not all P&C's do BAS statements. If an OOSH Service (Out of School Hours Service) is operated as part of the P&C for example, then they may do a BAS Statement.

Other P&Cs that employ staff will be required to submit an IAS (Instalment Activity Statement).

Q: Can the P&C take a financial loan and can Federation provide any advice or tips about this?

A: Federation's advice to P&C Associations that are thinking about taking out a loan is - DON'T! This is not a good idea for the following reasons:

1. As a P&C Association, don't have any collateral to offer a lending institution.
2. Individual P&C members would have to put their own personal assets on the line and go "guarantor". Who in their right mind would be prepared to do that?
3. Any P&C Association that were to borrow money, would be leaving a legacy of debt for future members and office bearers - people who had no say in the decision at the time and would not thank them for it.
4. As a member of your P&C Association, you should consider applying to the DET (Department of Education and Training) for a dollar for dollar grant if you are trying to build something for example.

Q: Where do I get an ABN number for my P&C Association?

A: Contact the ATO (Australian Taxation Office) and make sure your P&C doesn't already have an ABN Number. Sometimes, as Executive changes, these things get misplaced.

If there is no record of your P&C ever applying ask for an application form. It is important that when you fill out the forms, you must also indicate that as a P&C Association incorporated under the Act 1976, your P&C have income tax exemption as charity status.