Are you ready?
Self Assessment for Not-For-Profit organisations.
Recent developments will significantly increase the annual reporting obligations for many community Not-For-Profit (NFP) entities who are not presently registered with the Australian Charities & Not-For-Profit Commission (ACNC) for the purpose of maintaining their income tax exemption status.
From the 1 July 2024, the Australian Taxation Office now requires NFP organisations to lodge a self-review in order to stay income tax exempt. This assessment will be due annually by the end of October. However, October 2024 has now been extended to March 2025.
Under Division 50 of the Income Tax Assessment Act 1997, the following eight categories will now self-assess eligibility for income tax exemption.
| · Community service | · Health |
| · Sporting | · Employment |
| · Cultural | · Scientific |
| · Educational | · Resource development |
This will apply to the following non-charitable NFP entity types:
| · Community groups | · Business & Industry Associations |
| · Community sports clubs | · Chambers of Commerce |
| · Register Clubs, including Bowling & Golf | · Professional Membership Associations |
| · Rugby League and Football Clubs | · Parent & Friend Associations |
| · Regional, State and National Sporting Groups | · Social Clubs |
| · Performing Arts Groups | · Cultural Organisations & Museums |
This will apply to the following non-charitable NFP entity types:
It is estimated that these new reporting requirements will apply to an estimated 157,000 non-charitable NFP’s across the country.
To prepare for the changes we recommend the following:
- Conduct an early review of your eligibility by using the ATO’s guide.
- Check all your details are up to date, including authorised associates, contacts and addresses.
- Review your purpose and governing documents to understand your NFP category.
- Set up myGovID and link it with your organisation’s ABN using Relationship Authorisation Manager (RAM).
When it comes time to lodge, you can use the Online Services for Business using your myGovID. If you use registered tax agents, they can also lodge on your behalf. An example of the form is available from the ATO website by searching for document number NAT 74141.
Need help? Call Fortunity today at 02 4304 8888 and let our expert team assist you with the ATO’s self-assessment, ensuring a stress-free and accurate lodgement.
For more information refer to the ATO website.
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