It’s here! It has arrived, it’s an effort, but at the end of the day I know where I come from, where I’m going and that I’m on track.
Before ‘save the dates’ became a thing, it was an untold rule in my family that you did not miss a family event which included Christmas, Easter, weddings and all family celebrations that involved more than your immediate family. These annual events are what bring us together. These events do not just happen, they are carefully considered, meticulously organised and successfully put into action. In many ways it is the ‘checking in’ with family that has grounded me throughout my life. It has never felt like reporting… but answering my family’s questions about my activities, what they’ve heard and whether I’m doing the right things, has helped me to prepare for the many responsibilities and obligations I have fulfilled throughout my career.
There is always so much anticipation and preparation as we head toward an event, and upon reflection, I’m sure many readers will agree that the more prepared you are, the better your overall experience.
Tax time is one of the most critical times of the year for the entire Australian community. Whether you love it or not, it’s a time of the year that forces you to review and reconcile your obligations. This is why tax time spans four months. It’s to give us all time to prepare and correctly report our obligations.
For the very first time, the NFP self-review return is part of Tax Time 2024. For many NFPs, this is a new event so preparation is key. Here’s what you need to know.
Your first NFP self-review return is ready to lodge
From the 2023-24 income year, non-charitable not-for-profits with an active Australian business number (ABN), must lodge an annual NFP self-review return to notify the ATO of your eligibility to self-assess as income tax exempt.
- Tax Time began on 1 July and closes on 31 October 2024, and we encourage all NFPs to lodge their 2024 NFP self-review return during this time.
- The ATO will shortly send letters to non-charitable not-for-profits to notify them that the NFP self-review return is ready to access and lodge.
Watch our first webinar New reporting requirements for not-for-profitsExternal Link. It outlines everything you need to know to get ready to lodge your NFP self-review return. This is a useful resource for all NFPs, including volunteers.
Lodging the NFP self-review return
The NFP self-review return has been designed for lodgment using our online services. You can do many of your tax, super and registration transactions with us online. Our channels are safe and secure.
I’m often asked why we didn’t introduce a paper return given so many smaller NFPs and volunteers may not have access to digital platforms. One of the main reasons is that paper is not sustainable and it didn’t give us the opportunity to streamline the questions or provide useful information if you were stuck on a question.
Using online services also reduces costs in the long run both for taxpayers and administratively.
But we’ve listened to your feedback and have expanded the ways you can lodge in this transitional year.
- NFPs can access and lodge their NFP self-review return now in Online services for business.
- Registered tax agents can also lodge the NFP self-review return using Online services for agents.
- NFPs can also lodge their return using a self-help phone service. The self-help phone service is available to lodge the NFP self-review return if NFPs can't access Online services for business.
- To submit the NFP self-review return using the Self-help phone service, we advise NFPs to prepare your answers first using the guide at ato.gov.au/NFPselfreviewguide and then phoning 13 72 26 to lodge the return.
Lodgment due dates
We’ve also heard that some NFPs may need additional time so we’re providing additional time to lodge up to 31 March 2025 if it’s required.
- The decision to extend the due date for this financial year has been made to assist NFPs that need more time to lodge your first return using Online services or the Self-help phone service.
- You don’t need to contact the ATO to receive this extra time, as it forms part of our transitional support arrangements.
Substituted accounting periods
Some NFPs operate on a substituted accounting period (SAP), which is an income year that is not the standard tax year of 1 July to 30 June.
- An ATO approved substituted accounting period (SAP) may not be required to lodge the NFP self-review return.
- As financials are not reported, in most circumstances you can meet NFP self-review return requirements by considering your activities, purposes and governing documents for the year ending 30 June.
See substituted accounting periods for more information on who needs a SAP and lodgment due dates.
Taxable NFPs
If you complete the NFP self-review return and find you don’t meet eligibility requirements for 1 of the 8 categories, follow the prompts to notify the ATO that none of the categories apply. The ATO will work with you to meet your ongoing obligations.
For organisations with an income year ending 30 June, you have up to 15 May 2025 to lodge your income tax return or notify us of a return not necessary. Find out what you need to know at Transitional support if you are taxable.
Watch our video What to do if your NFP is taxableExternal Link. External Link
Charitable NFPs
If you think you may have charitable purposes, or you are unsure if you have charitable purposes, continue to complete the NFP self-review return and submit. The ATO will work with you to help you to determine charitable status.
Watch our video What to do if you are a charitable NFPExternal Link.
Updating registration details
Your organisation’s address, associate and authorised contacts must be up-to-date so you can access Online services for business or engage a registered tax agent.
Notify us of changes to your registration details now by downloading the fillable form at ato.gov.au/NFPnotifyofchanges.
- If you are a newly appointed associate or authorised contact for your NFP, remember to attach evidence to the back of the form.
Steps to take to access Online services
- To access Online services for business, you first need to Set up MyGovID and RAM.
- The best place to find updated guidance about the new return is at ato.gov.au/NFPtaxexempt.
- To lodge using the self-help service, you will need to:
- first review the list of self-review return questions at NFP self-review guide
- record responses to each return question and have these with you when you phone
- phone the self-help service on 13 72 26 for NFP self-review return lodgment
- enter the organisation's ABN and a reference number listed on a letter the ATO posted to your organisation, such as the Your annual self-review reporting obligation notice
- follow the prompts to record your responses and submit the NFP self-review return questions as you record your responses.
If you have the above details with you when you call, lodgment will typically take around 10 minutes to complete.
Preparation is key
We’re getting lots of feedback from NFPs and their representatives, and we’re using this opportunity to update our web guidance. I strongly encourage NFPs to visit ato.gov.au/NFPtaxexempt and work through some of the information. You may be surprised how this will contribute to your preparation.
I am heartened by the many NFPs who have taken a proactive approach, with lodgments received from 1 July. I’m also really pleased by the positive experiences that are shared. This morning a footy club wrote to me saying ‘It took less than 2 minutes to lodge, very easy’.
As I said in the beginning events do not just happen. Consider your organisation’s purpose and activities, organise access to online services and lodge your return.
Make this new annual event one to remember and look forward to!
Take care and stay safe.
Jennifer