Earlier this month, my family gathered to celebrate my niece's christening marking the beginning of a new generation. As I was writing the card, I reflected on the importance of family and community, how they help shape lives and the enduring legacy they leave.
During the event, I spoke with the godmother who is expecting her third child about balancing work life and family responsibilities. I was incredibly encouraged by the empowered young woman, noting she is an incredible role model.
Role models are important in all facets of life. They include parents, mentors, coaches, teachers, leaders, academics, club members, professionals; the list is endless. What is true of all role models is their ability to influence behaviours and actions.
At the ATO, we talk about the model taxpayer and our vision for an Australia where every taxpayer meets their obligations because complying is easy, help is tailored, and deliberate non-compliance has consequences.
To support this vision, our Commissioner recently launched our organisational purpose ‘we collect tax so that government can deliver services for the Australian community.’
It's within this context that we support the NFP sector and within which the sector must operate. In administering the law, we set compliance expectations and look for ways to reduce and minimise red tape. We expect all taxpayers to model good behaviour. For NFPs this means:
- Checking that the associates and addresses of your NFP are current. If not, and they need to be updated, download and submit the Change of registration details form at ato.gov.au/NFPnotifyofchanges. If you haven’t updated your details in a while and you don’t know who your authorised contact is, we'll accept the completed form from a newly appointed authorised contact if evidence such as minutes from the meeting or a letter from the NFP is also provided.
- Undertaking a regular health check of your NFP at least annually. We recently published the NFP tax, super and registry responsibilities checklist. This good governance checklist helps NFPs stay on track with their tax, super and registry obligations. It’s good practice to run through this checklist at your regular board or committee meetings as a standing agenda item. Staying current with your tax and super affairs is part of your good governance framework and delivers transparency and accountability for your members.
- Staying informed by subscribing to our monthly newsletter Not-for-profit news. It’s free to subscribeExternal Link and delivers timely information tailored especially for NFPs.
- Reporting non-compliant behaviours that bring disrepute to the NFP sector. We welcome tip-offs. They help level the playing field for honest entities. It only takes a few minutes to make a tip-off, and you can remain anonymous. You can make a tip off by:
- completing the tip-off form (the form is also available in the Help & support section in the ATO app)
- phoning us on 1800 060 062.
- Reaching out if you need assistance. To deliver on our vision, we provide the sector with expert advice through our web content as well as our dedicated phone service for NFPs and their representatives. You can call the team on 1300 130 248 Monday to Friday 8:00 am to 6:00 pm AEST.
NFP Stewardship Group
Our NFP Stewardship Group is both a group of stewards and role models for the sector. Our group which was recently refreshed to include a First Nations organisation and a culturally and linguistically diverse (CALD) NFP, met on 25 March for the first meeting of 2025. The diversity of our members was reflected in the depth and richness of the conversation which is critical given it's one of our key consultative forums. Membership is contingent on members providing an integrity declaration and meeting the requirements of the charter including participation and support for the administration of the law.
Members of our NFP Stewardship Group are role models in their communities and networks and we greatly value their time and constructive feedback especially where the law may not be operating as intended.
The key items at our March meeting focused on:
- a technical discussion with respect to the Global Anti-Base Erosion Model Rules (GloBE Rules) for Australian NFPs
- an overview of our compliance expectations and what we see in review and audit cases
- an open discussion about emerging issues including anti-avoidance
- a presentation on places of worship and CALD communities, and the support available to help them meet their tax, super and reporting obligations
- an update on the NFP self-review return including the approach for those who haven’t lodged.
NFP self-review return
As of 31 March, the extended lodgment date, more than 27,000 NFPs had lodged their return, and the number is still rising as more lodgments come in.
The NFPs who have lodged are modelling good sector behaviours and will have their future returns pre-populated making it even easier to meet their reporting obligations in future years.
We're extending our support for NFPs who haven’t lodged and we're urging them to do so before 30 June to avoid a review. We’ve published a new What happens if you lodge the NFP self-review return late page on the ATO site to help self-assessing NFPs who are yet to lodge. The key points for NFPs who need to lodge are:
- there is a legal requirement to lodge an annual self-review return for non-charitable NFPs with an active ABN
- NFPs who haven’t lodged must lodge as soon as possible - you don't need to request an extension
- we have support for NFPs making genuine efforts to comply, noting that we've suspended penalties for late lodgment of the 2023–24 NFP self-review return as part of our transitional support arrangements
- from July 2025 we'll review NFPs who intentionally ignore their obligations.
NFPs can demonstrate they’re trying to do the right thing by:
- lodging the return online or via our self-help phone service on 13 72 26, even if they are lodging late
- engaging a registered tax agent to lodge on their behalf
- setting up their myID to access Online services for business
- updating their ABN details.
Requests for private rulings
Finally, we’ve seen an uptick in the number of applications for private rulings from NFPs. This is being driven by a desire for certainty. Seeking a private ruling may not be the most efficient way of obtaining the guidance required. Applying for a private ruling can take a significant amount of time and be resource-intensive, particularly if additional information is required.
In June last year, I urged NFPs and sector stakeholders to check if our publicly available guidance addresses questions first. If you’ve relied on our public advice and guidance in good faith, you have the requisite certainty.
For NFPs who already have a private ruling, there's a common misconception that a time 'extension' must be requested if the end date is approaching. This isn't the case.
If your NFP’s circumstances haven't materially changed from the circumstances outlined in your initial private ruling, you don’t need to apply for an extension.
In fact, the life of a private ruling cannot be extended and any new request is treated as a fresh application!
Final thoughts
In wrapping up this update, I’d like to call out the extraordinary efforts of the sector, my team, and all the internal and external stakeholders who have contributed to the implementation of the NFP self-review return. The NFP sector is significant and expected to grow with billions of dollars flowing through it. It's appropriate for Australians to expect that all NFPs are meeting their tax, super and registry obligations and that they operate for the purpose for which they're established. Modelling good behaviour ensures we can sustain a vibrant sector.
On that note, I wish everyone a safe break with the approaching Easter and Anzac public holidays, particularly if you're taking a road trip.
Take care and stay safe
Jennifer