The hire of church facilities is a good way of maintaining community connections, and as a source of revenue. To ensure facilities are well maintained, and to ensure full coverage by Diocesan insurance policies, Hire Agreements are required when hiring a facility to an external party. Template Hall Hire Agreements are provided below. Note that there are separate agreements for hiring to Individuals and to Incorporated Entities.

Note that any event held as part of the mission and ministry of the Anglican church does not require a Hire Agreement. This includes Bible studies, prayer groups, or use by another Anglican church or mission partner.

Individuals means the hirer is a person or a a person responsible for an unincorporated group meeting for a purpose which is not:

  • Commercial or political
  • Open to the general public
  • Covered by an existing Public Liability insurance policy

Examples where an Individual Facility Hire Agreement is appropriate include:

  • A private birthday party, celebration, or wedding reception
  • Dance practice not associated with a dance school, and no fees are charged
  • Friends who want a venue to read plays or poetry, but are not rehearsals for a show
  • Art and craft groups who meet to share a common interest
  • Musicians playing for non-commercial purposes
  • Support and self-help groups

Any other event, where the hirer is an incorporated entity or undertaking the event for commercial or political purposes, must use a Corporate Facility Hire Agreement.

Diocesan insurers now require that all hirers of parish facilities, must provide evidence of adequate Public Liability insurance cover ($5M for individuals and $10M for corporate entities).  If cover is not already purchased by the hirer, an option is available to purchase cover from

GST charges on hall hire

A useful pack about GST for parishes has been prepared by the Anglican Diocese of Sydney. See attached guide.
Section 10, in particular the part below, as although GST normally applies there are circumstances where this is not necessarily the case:
“There are 2 scenarios where the lease, licence or hire of the parish hall will not be subject to the GST –
  1. (a)  where the hall is made available to another member of the Anglican GST Religious Group (for example Anglicare) then this becomes an internal transaction within the Group and GST is not applicable, and 
  2. (b)  where the parish council resolves to provide the hall for “nominal consideration”. Nominal consideration is either –
    1. (i)  less than 50% of the market value of the supply (less than 75% if the hall is used for accommodation) ; or
    2. (ii)  less than 75% of the cost of making the supply.
Note: It is likely that the market value will be the figure that will be easiest to ascertain. The ATO requires that any analysis of this nature must be properly documented. Therefore, the parish council should make sure to minute any resolution on this matter and be able to produce that minute and substantiate the market value in case of ATO audit. If the nominal consideration test can be met then the supply is GST-free as provided bysubsections 38- 250(1)(b)(ii), 38-250(2)(b)(ii) of the GST Act. (Refer section 6. above). “

As an example, a Parish hall is rented to an AA group and charged a token hire fee (less than 50% of market value) so there is not a GST component for them. 

Note: accuracy of the above should always be checked with the ATO if in doubt.