If you are a new employee involved in the administration of a not-for-profit (NFP) organisation, this package introduces you to the information and services we have to assist you in your role.
Find out about
- What tax concession are NFPs entitled to?
- Do I have to pay income tax?
- Do I have to pay GST?
- Workers in not-for-profits
- Gifts and fundraising
- Record keeping, administration and payment
- State and territory taxes and duties
See also
- Getting help
- Our CommunityExternal Link offers a range of free policy templates for NFPs
What tax concession are NFPs entitled to?
If your organisation is a not-for-profit, the tax concessions it may be entitled to access are:
- income tax exemption
- fringe benefits tax (FBT) rebate
- FBT exemption
- goods and services tax (GST) concessions for NFP organisations
- GST concessions for charities and gift deductible entities
- DGR
- refunds of franking credits.
See also
- Register your NFP
- What type of NFP is your organisation?
- Getting endorsed
- What tax concessions are available?
- Overview of legal structures
- Review your tax status
- Changes to your organisation
Do I have to pay income tax?
Some NFP organisations have to pay income tax, and some are exempt.
To work out if your NFP organisation is exempt from income tax see:
See also
- Types of income tax exempt organisations
- Requirements for self-assessing entities
- Taxable organisations
- Consolidation
- Franking credits
Do I have to pay GST?
Goods and services tax (GST) is a broad-based tax of 10% on the sale of most goods, services and anything else consumed in Australia.
NFP organisations must register for GST if their GST turnover is $150,000 or more; they can choose to register if their GST turnover is lower.
See also
- GST registration
- GST concessions
- GST branches, groups and non-profit sub-entities
- Grants and sponsorship
Workers in not-for-profits
You need to work out if your workers are employees, contractors or volunteers because this status may affect the tax dealings between you and your workers. We provide checklists to help you meet your tax and super obligations for your workers.
If your organisation has employees, it will need to:
- register for PAYG withholding, if it is not already registered
- withhold amounts from their pay and send the withheld amounts to us
- contribute to its employees' superannuation.
Your NFP organisation needs to consider its other obligations related to workers, such as child support payments, workplace giving programs, reporting and paying tax, and keeping records.
See also
- Your workers
- Your obligations to workers and independent contractors
- Fringe benefits tax
- Not-for-profit volunteers
Gifts and fundraising
To receive income tax deductible gifts and contributions, an NFP organisation must be a deductible gift recipient (DGR). Some DGRs are listed by name in the tax law, but most must apply to us to be endorsed as DGRs.
See also
- Receiving tax-deductible gifts
- Claiming tax deductions
- Fundraising events
- Workplace and business support
- Tax and fundraising
- State, territory and local government requirements
Record keeping, administration and payment
Good records help you manage your NFP organisation's tax and make it easier to report and pay on time.
Generally, for tax purposes, you must keep your records for five years. If you are a charity, you will need to keep your records for seven years.
Keeping records electronically will save you time and improve accuracy.
We offer several different payment methods.
See also
- Records, reporting and paying tax
- Not-for-profit investment income withholding
- Not-for-profit eligibility for supplier discounts
- Withholding in business transactions
State and territory taxes and duties
Taxes and duties levied by state and territory governments include:
- stamp duty – also known as ‘duty’ in some states
- payroll tax
- land tax.
Each state and territory has its own laws for these taxes so be sure to be across the requirements for each state you operate within.
As these laws vary from state to state, you need to ask your local state/territory revenue office about them.
Contact details are provided.
Next steps
If you are a new treasurer, office bearer or employee involved in the administration of a not-for-profit organisation, these guidelines introduce you to the information and services we have to assist you in your role.