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Is your non-profit organisation taxable? By David Naylor

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Are you a non-profit organisation? Did you know that some types of non-profit organisations are taxable while some are exempt from income tax? Know whether your organisation is required to lodge an income tax return or not.

Non-profit organisations are generally exempt from income tax and are not required to lodge an income tax return unless the tax office asks them to. If you are not exempt, you may be required to lodge an income tax return using the company tax return.

For income purposes, non-profit organisations that are subject to tax are treated as non-profit companies or other taxable companies. It is important to note that non-profit companies are given special income tax rates and special arrangements for lodging tax returns.

A non-profit company of an Australian resident with a taxable income of more than the $416 taxable threshold per year should lodge a company tax return. Other taxable companies, on the other hand, are fully taxed. They have to lodge an income tax return every year, no matter their taxable income.

To know whether your organisation has to lodge a company tax return or not, you should first find out whether you are a non-profit company or other taxable company. You should determine your threshold that’s subject to tax for lodgement and calculate your organisation’s taxable income.

For more information about taxes in Australia, contact a Specialist to discuss your particular circumstances.

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Chan & Naylor Group has nationwide offices in North Sydney, South West Sydney, Sydney , Pymble and Parramatta in New South Wales, Melbourne, Moonee Ponds and Hawthorn in Victoria, Brisbane and Capalaba in Queensland, and East Perth in Western Australia that can assist you with your income tax as well as any property tax or business tax enquiry that you may have. Contact us today.

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Source: ATO

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