There is a new annual lodgement obligation for Not-for-profits (NFPs), including sporting clubs, societies and associations, with an active Australian business number (ABN). We note this does NOT apply to charities or those registered as deductible gift recipients.

The purpose of this annual lodgement is to allow a self-review of the NFP criteria, to ensure only those meeting the criteria are provided with the associated tax exemptions.

The first NFP self-review return for the 2023–24 income year will need to be lodged between 1 July and 31 October 2024. If your organisation has a substitute accounting period you will need to wait until the relevant return is available. For example, NFPs with a year end of 31 December 2023 for the 2023–24 income year will need to wait until after 1 July 2024 to lodge their return.

Each organisation with an ABN will need to complete the self-review return, even if affiliated with a broader group.

The self-assessment is completed online using the ATO online services. If you need to establish access to the ATO online services please see this link for further information - ATO online access information. Alternatively, if you use the services of an accountant or tax agent, they can lodge the return on behalf of the NFP using the tax agent portal.

This is a compulsory requirement. NFPs may become ineligible for an income tax exemption if a self-review return is not lodged each year. Penalties may apply under the ATO’s penalty framework for non lodgement.

See the ATO website for further information - ATO Reporting requirements to self-assess income tax exemption.

In order to stay up to date with relevant ATO information, we would encourage all NFPs to subscribe to the ATO’s NFP Newsletter via - ATO - Subscribe - Subscribe