New Self-Reporting Requirements For Not-For-Profits

The CBAA would like to remind its members that, as of July 1 2023, non-charitable income tax exempt not-for-profits with an active Australian Business Number will be required to submit online self-review forms to remain eligible for income tax exemption. 

Prior to this change, announced by Treasury in the 2021-2022 budget, not-for-profits did not have to submit self-assessments to the Australia Tax Office (ATO) or obtain confirmation of their income tax status. This change means that affected not-for-profits will need to submit online annual self-review returns to access tax exemption. Those that do not may face penalties from the ATO and lose their income tax exemption.

These reforms are aimed towards improving transparency and trust in not-for-profits, and while they may increase the burden on organisations that have to submit self-reports it is hoped that an online system to be built by the ATO will make it easier for information to be submitted.

The CBAA recommends that community broadcasters uncertain of their income tax liability, or seeking advice on the new requirements regarding self-review, should seek professional legal or tax advice.

Resources:

• Australian Taxation Office - Income tax status review worksheet for self-assessing non-profit organisations
• Justice Connect Not-for-Profit Law - Income Tax Exemptions
• Moores - ATO reforms affecting NFPs who self-assess as income tax exempt

Sourced from Justice Connect Not-For-Profit Law.