From 1 July 2023, not-for-profit (NFP) entities with an active Australian business number (ABN) are required to lodge an annual self-review return to access income tax exemption.
Announced as part of the 2021-22 Federal Budget the new measure is intended to enhance transparency and integrity in the system, by ensuring only eligible NFPs access income tax exemption.
The annual self-review return will need to be lodged between 1 July and 31 October 2024.
NFPs are encouraged to prepare for this change before 1 July 2024. Commencing your annual self-review process early will assist your organisation determine its income tax exemption eligibility and ensure you have everything you need to lodge.
There are a range of actions you can take today to start getting ready for the new annual self-review reporting obligations, including:
- ensuring your primary contact and ABN details are up to date
- setting up your myGovID and Online Services for business
- reviewing and updating your governing documents; and,
- subscribing to the ATO’s NFP Newsletter for regular updates and to stay informed about the new reporting requirements.
Lodging the new annual self-review return does not apply to a Government entity or NFPs that are already a registered charity with the Australian Charities and Not-for-profits Commission.
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