We recently wrote about the 2022 Federal Budget announcement that will require not-for-profit entities that self-assess an income tax exempt, to lodge an annual ‘NFP self-review return’ with the ATO.
The first annual self-review form will become available in July 2024 and must be completed by 31 October 2024.
This regime covers all not-for-profits, other than charities registered with the ACNC, who self-assess as Income Tax exempt under Division 50 of the Income Tax Assessment Act 1997.
This includes community service, cultural (art/literature/music), educational, health, employment, resource development, scientific and sporting organisations.
The annual self-review return for the 2023/24 year can be lodged using ATO online services. A registered tax agent can also lodge the annual self-review return on behalf of a NFP.
The self-review return will:
- include questions like those provided in the current self-review worksheets; and
- guide NFPs to consider their purpose and activities against specific eligibility requirements.
The self-review return will not include any financial questions about the organisation other than the organisations income range.
On the 13th of November, the ATO published additional guidance material to help not-for-profits to get ready for the new reporting regime.
Whilst the time to submit the annual self-review is still a way off, those who are involved in not-for-profits are encouraged to get up to speed with the new requirements.
If you need assistance to understand the new requirements, or to review the eligibility of your not-for-profit for tax exempt status, please get in touch.
Sky Accountants Ballarat
Phone: 03 5332 8855
Office Address: 902 Howitt Street, Wendouree, Victoria 3355, Australia
Postal Address: PO Box 2234, Bakery Hill, Victoria 3354
Sky Accountants Gisborne & Macedon Ranges
Phone: 03 5428 1400
Office Address: 45 Hamilton Street, Gisborne, Victoria 3437, Australia
Postal Address: PO Box 270 Gisborne Victoria 3437