11 July 2024  

In previous Sky Updates we have written about the 2022 Federal Budget announcement that not-for-profit entities that self-assess as income tax exempt, will be required to lodge an annual ‘NFP self-review return’ with the ATO. 

The purpose of the new reporting regime is to ensure that NFPs actively review their situation in order to ensure they meet the requirements to be tax exempt under Division 50 of the Income Tax Assessment Act 1997. 

This reporting regime covers all not-for-profits, other than charities registered with the ACNC, who self-assess as Income Tax exempt under Division 50.   

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.  Alternative, a registered tax agent (eg Sky Accountants) can also lodge the annual self-review return on behalf of a NFP. 

The first NFP self-review return is now available for completion and we will be working with our NFP clients to assist them with this task. 

Regular readers may recall that the due date for completion of the NFP self-review return is 31 October 2024. 

However, in order to better support NFPs with the new requirement, the ATO has this week announced a blanket extension to 31 March 2025. 

If you are associated with a NFP and need assistance with the new requirements, 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