If your organisation is a non-charitable not-for-profit (NFP) with an active ABN, there’s a new requirement you need to know about. Starting from the 2023–24 financial year, these NFPs must lodge an annual NFP self-review return to confirm their eligibility for income tax exemption.
What’s the Deadline?
The usual deadline for this return is 31 October each year, but for the first lodgment (2023–24 financial year), the ATO has extended the due date to 31 March 2025. This gives organisations extra time to prepare.
Who Needs to Lodge?
Non-charitable not-for-profits (NFPs) with an active Australian business number (ABN) that self-assess as income tax exempt are required to lodge an annual NFP self-review return, unless your NFP is one of the following:
- A NFP is registered as a charity with the Australian Charities and Not-for-Profits Commission (ACNC) and endorsed by the ATO to be income tax exempt.
- A taxable NFP
- An NFP sub-entity for GST purposes
- A specific type of government entity
What You’ll Need
The return is fairly straightforward. You’ll need to provide:
- Organisation Details – Confirm your NFP’s information.
- Income Tax Self-Assessment – Review your purpose and activities to check if you still qualify for tax exemption.
- Declaration – Review your answers and submit the return.
What If Your NFP Is No Longer Tax-Exempt?
If you find out that your organisation no longer qualifies for income tax exemption, don’t panic. The ATO is offering support, including:
- Extra time to lodge your tax return.
- Flexible payment plans for any tax owed.
- Possible remission of interest charges and penalties.
Need Help?
If you’re unsure about how this affects your organisation or need assistance with lodging the return, our team at Chan & Naylor is here to help. Get in touch, and we’ll make sure everything is sorted smoothly.
About Chan & Naylor
Established in 1990, Chan & Naylor has been a trusted partner for thousands of businesses and investors across Australia. Based in Sydney, we provide expert accounting services tailored to your needs. Choosing Chan & Naylor means you’re not just selecting a service provider; you’re gaining a partner aligned with your business goals. You’ll have access to a dedicated client manager supported by a team of accountants that specialises in business tax and investments. Contact us today so we can discuss how we can help you.
Disclaimer
This article serves as general information only and may not account for the unique circumstances of individual readers. For personalised and strategic solutions tailored to your specific situation, we invite you to seek professional advice from Chan & Naylor. Our highly experienced team is dedicated to helping you navigate the complexities of Australian taxation, ensuring that your financial strategies align with the latest regulations. Contact us today to embark on a path of informed and customised tax planning for your property investments.
