Not-for-profit

February 2022

June 2024

Targeted consultation is underway.

To understand the impacts that the government announced reform will have on self-assessing income tax exempt not-for-profits (NFPs) and co-design the lodgment process.

Currently NFPs who self-assess their own eligibility for income tax exemption are not required to report their eligibility to the ATO.

In the May 2021–22 Budget, the Australian Government announced reforms to the administration of NFP entities that self-assess as income tax exempt. From 1 July 2023, non-charitable NFPs with an active ABN will be required to lodge an annual self-review return to access income tax exemption, submitting the information they ordinarily use to self-assess their eligibility for income tax exemption.

The ATO will explore:

• how NFPs currently self-assess income tax exempt eligibility
• impacts of the changes on NFPs
• expectations for implementation
• support and guidance NFPs will need through the change.

The ATO will consult the sector to:

• user-test and iteratively refine the new annual self-review return
• co-develop practical support and refresh public guidance
• validate the ATO’s administrative approach.

• NFP entities
• NFP advisory associations
• NFP sector peak body associations
• Tax professionals
• Tax professional associations
• Not-for-profit Stewardship Group
• Members of the Tax Practitioner Stewardship Group

Jennifer Moltisanti, Small Business
jennifer.moltisanti@ato.gov.au
Phone 03 9285 1711