From 1 July 2023, non-charitable income tax exempt not-for-profit organisations with an active Australian Business Number will need to submit online self-review forms to the Australian Taxation Office (ATO) to remain eligible for the exemption. The first return will need to be lodged from 1 July 2024 for the 2023–24 income year.
Previously, not-for-profits have not been required to provide their self-assessments to the ATO, or obtain confirmation of their income tax status. Failure to comply with the new requirement to lodge the form may trigger penalties under the ATO’s penalty framework and loss of the not-for-profit’s exemption.
Not-for-profits that are also regulated as charities by the Australian Charities and Not-for-profits Commission (ACNC) and have been endorsed by the ATO as income tax exempt will not be required to lodge an online self-review form.
In preparation for the new requirement, non-charitable income tax exempt not-for-profits can complete the income tax status review worksheet which can be downloaded from Income tax status review worksheet for self-assessing non-profit organisations | Australian Taxation Office (ato.gov.au). They could also consider whether to register as a charity with the ACNC to gain various benefits including income tax exempt endorsement by the ATO. More information on charity registration is available at Who can apply to be registered? | ACNC
Income tax status review worksheet for self-assessing non-profit organisations