Jul 23, 2024 Matthew Hung
Not-for-profit ATO self-review returns
Starting with the 2023/2024 tax year, the ATO will be asking many not-for-profits with active ABNs to provide some more information about their income tax status via a self-review return. These will be due by 31 October 2024 and can be lodged through ATO business online services or through a registered tax agent.
Organisations likely to be affected by the changes include:
- Sporting clubs
- Community service organisations
- Social clubs
Those specifically exempt include:
- ACNC Registered charities
- Not-for-profits already lodging income tax returns
- GST sub-entities (ABNs just for this purpose)
The ATO has published a guide to assist not-for-profits to navigate the changes. The ATO also has a dedicated Not-for-profit Advice Service on 1300 130 248.
Justice Connect have also put together some helpful resources.
During the process, it may be discovered that an organisation should have been paying tax for many years. The ATO has indicated that it is focusing on compliance for the 2023 -2024 year and onwards, but may take action if it identifies deliberate past tax evasion or fraudulent behaviour.
Will your not-for-profit affected? One of the most difficult challenges may be to convince the ATO that you or your committee members are the current authorised persons it should be communicating with. We recommend updating those details now.
