Reporting Requirement Changes for Not-for-Profits

As a follow-up to the email we sent to our clients last year, we want to reiterate the importance of staying informed and up to date with the new reporting requirements for not-for-profit (NFP) organisations.

Starting from the 2023–24 financial year, NFPs with an active Australian Business Number (ABN) are required to submit a self-review return to maintain their income tax exemption. Before this, NFPs had not been required to report annually to the ATO. This measure, effective from 1 July 2023, aims to enhance transparency and ensure that only eligible NFPs benefit from tax-exempt status. Note that government entities and charities registered with the Australian Charities and Not-for-profits Commission (ACNC) are exempt from lodging the return.

For those with a financial year from 1 July to 30 June, the ATO has extended the lodgement deadline from 31 October 2024 to 31 March 2025 (providing additional time being this is the first year the return is required).

If you haven’t yet reviewed your organisation’s eligibility for income tax exemption or taken the necessary steps to comply, now is the time to do so.

When lodging the NFP self-review return, you need to:

• Advise the type of exempt category your NFP is self-assessing against
• Consider the NFP’s purpose and activities against specific eligibility requirements under one of 8 income tax exempt categories
• Estimate the NFP’s gross revenue range as small, medium or large, to indicate the size of the organisation
• After lodgement, you’ll receive a confirmation notice with the outcome of your self-assessment

HQB are here to assist with your lodgement requirements if needed. Please reach out to us if you have any questions or need any assistance. For more information on this, you can visit the ATO website.

– Heida Bell

Posted 18.03.2025

This article is compiled as a helpful guide for your private information and is subject to copyright. We suggest that you do not act solely on the basis of material contained in this article because items are of general nature only and may be liable to misinterpretation in particular circumstances. We recommend that our advice be sought before acting on any of these crucial areas.