We have previously 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 assess their situation and correctly access the exemptions in Division 50 of the Income Tax Assessment Act 1997 (ITAA97).
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 ITAA97. 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.
Further information about the self-review process and the questions to be answered can be found on the ATO website.
In recent times the ATO have been encouraging NFPs to proactively prepare for the new reporting regime in their online content and through direct mail.
Whilst the time to submit the annual self-review is still a way off, we too encourage those who are involved in not-for-profits we too encourage NFPs to get up to speed with the new requirements.
We will be liaising with our NFP clients in the lead up to the self-review to ensure that they are ‘match-fit’.
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