When you should review
We recommend NFPs conduct a review of their income tax exempt status annually and whenever there is a major change to the structure or activities of the organisation.
Annual review for NFPs self-assessing as income tax exempt
From 1 July 2023, NFPs with an active Australian business number (ABN) must lodge an annual NFP self-review return to confirm their eligibility to self-assess as income tax exempt.
The first NFP self-review return must be lodged for the 2023–24 income year and each subsequent income year.
NFPs that self-assess as income tax exempt can use the questions in our self-review guide to review the organisation's tax status, and prepare your answers before the NFP-self-review return is available on 1 July.
When lodging through Online services, you have the option to print a copy of the questions and your answers to share with your board, committee or tax agent.
For more information, see Reporting requirements to self-assess income tax exemption.
Reviewing entitlement to tax concession charity endorsement
NFPs reregistered as a charity with the Australian Charities and Not-for-profits Commission (ACNC) and income tax exempt as an endorsed tax concession charity (TCC) by us, are not required to lodge a NFP self-review return.
Charitable NFPs, endorsed as a tax concession charity (TCC), are required to self-review entitlement to endorsement as a TCC annually, and whenever there is a change in the charity's structure, purposes or operations.
For more information, see Review your TCC endorsement.
When we review
We review both income tax exempt and taxable NFPs. The reviews help establish whether your organisation is correctly assessing its income tax status.
We may request that you provide information and documents that are relevant to your assessment of your NFPs income tax status. While you must comply with this request, you will be given at least 28 days to provide the required information and documents. We will provide written notice of the result of the review.
If your NFP has not lodged income tax returns for the period under review and our review shows that it is not income tax exempt, we may require that income tax returns be lodged.
If your NFP has lodged returns and there are inaccuracies in income, deductions or entitlements, we may amend your assessment.
If your NFP is dissatisfied with the review, you can lodge an objection.