New Requirements for Not-For-Profits who Self Assess for Income Tax Exemption!

There has been a recent announcement which will effect not-for-profits who self-assess for income tax exemption. From 1 July 2023, non-charitable income tax exempt not-for-profits with an active Australian Business Number (ABN) will need to submit online self-review forms to the ATO to remain eligible for the exemption. 

In previous times, not-for-profits have not been required to provide self-assessments to the ATO, or obtain confirmation of their income status. The recent announcement will enhance trust and confidence within the sector by increasing transparency around the exemption. 

Who does this affect? 

This new requirement will affect NFPs who are not registered charities, currently there are approximately 125,000 not-for-profits who will be affected – for many this will be their first time reporting to the ATO. 

There are eight categories in which these entities fall into, these include;

  • Health Organisations 
  • Employment Organisations
  • Community service organisations 
  • Cultural organisations 
  • Public educational organisations 
  • Resource development organisations 
  • Scientific organisations 
  • Sporting organisations 

These new measures and requirements will add to the annual reporting obligations, but the ATOs confirmation of exemption can provide comfort to not-for-profits from a compliance perspective, particularly in regard to concerns around penalties should the organisation be subject to an ATO audit. 

Are you an NFP and need assistance with these new measures? 

To learn more about our accounting services, please contact Hopscotch today at 1300 HOP 123.

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