Oct 17, 2023 Matthew Hung
Is your Not-for-Profit income tax exempt?
Charities are entitled to income tax exemption. There are also a range of not-for-profit organisations that are not charities but are also income tax exempt.
Starting with the 2023/2024 tax year, the ATO will be asking not-for-profits, which are not registered charities, to provide some more information about their income tax status via a self-review return. These will be due on 31 October 2024. A preview of the form is scheduled to be released 1 October 2023.
How will you these changes affect your not-for-profit? The ATO has some helpful information, including the following flowchart which is a great place to start:
Don’t panic if you discover that your organisation has had this wrong, or you discover you may have to take some action to fix things up. The ATO is expecting this will be the case and, in particular, has indicated that it will not be asking organisations to pay income tax for years prior to 2024.
Contact us for further assistance.