From 1 July 2023, non-charitable not-for-profits (NFP) with an active Australian business number (ABN) need to lodge an annual NFP self-review return to self-assess their eligibility for an income tax exemption.
The NFP self-review return must be lodged for the 2023–24 income year. For organisations with an income year ending 30 June 2024, the 2023–24 NFP self-review return is due by 31 October 2024.
The ATO have estimated there are over 150,000 not-for-profits with an active ABN self-assessing as income tax exempt in Australia, including sporting clubs, community service groups and cultural organisations.
Returns can be lodged via Online Services for business or a registered tax agent can also lodge the return on behalf of an NFP using Online Services for agents. Moving forward, a new return will be required each income year. Penalties may apply under the ATO’s penalty framework if an NFP self-review return is not lodged each year.
Contact your WMS advisor for further information or visit the ATO website Reporting requirements to self-assess income tax exemption | Australian Taxation Office (ato.gov.au)
