NOTICE BOARD

Following the 2021-2022 budget, additional requirements were established for NFPs regarding self-assessment for tax purposes. The changes, which are now law, were designed to make the process more transparent and accountable.

These changes will ONLY affect your P&C if you are NOT a registered charity with the ACNC If that’s you, we encourage you to read this article in full and contact the ATO should you have questions. If your P&C is a registered charity with the ACNC, you will continue to be required to submit your annual information statement to the ACNC

The following information has been adapted from content available online here

From 1 July 2023, P&Cs with an active Australian business number (ABN) will be required to lodge an annual self-review return to access an income tax exemption

The self-review for the 2023-24 year needs to be lodged between July and October 2024, using:

Online services for business, or Online services for agents

Updates to reporting requirements for NFP entities

Currently, this time frame is for all NFPs (even those with different financial years to the standard July-June) however, this might change in the future after the form is launched next July.

When lodging the self-review, questions will guide you to consider purpose and activities against specific eligibility requirements of an income-tax-exempt entity These will not be financial in nature, and only one question will relate to estimating the income range to indicate the size of the not-for-profit

After submitting the first annual selfreview return, P&Cs will be able to confirm or update information on a pre-populated self-review return annually.

If a self-review return is not lodged yearly, P&Cs may become ineligible for an income tax exemption Penalties may apply under the ATO’s penalty framework

To prepare for this new process, there are some things you can do now:

If you have any questions about your P&C or its tax status, phone the ATO on 1300 130 248 between 8:00 am and 6:00 pm, Monday to Friday This webpage also has lots of useful information

If you want to register your P&C with the ACNC as a charitable organisation, please contact WACSSO for more information