Income tax exemption checklist – Resource development organisations
Your organisation can self-assess its income tax exemption if it meets all of the following requirements:
- it's a not-for-profit society or association
- it's not a charity
- it's established for the purposes of promoting the development of one of the following
- aviation
- tourism
- agricultural resources of Australia
- aquacultural resources of Australia
- fishing resources of Australia
- horticultural resources of Australia
- industrial resources of Australia
- manufacturing resources of Australia
- pastoral resources of Australia
- viticultural resources of Australia
- Australian information and communications technology resources.
If all of your organisation's purposes are charitable purposes for the public benefit and you do not have any independent non-charitable purposes, your organisation cannot self-assess as income tax exempt under this category. Your organisation will need to be registered as a charity with the Australian Charities and Not-for-profits Commission (ACNC) and receive our endorsement to access an income tax exemption.
For more information on what is a charitable purpose, see the Australian Charities and Not-for-profits Commission's websiteExternal Link.
Society or association
A society or association is an entity made up of people who have come together to implement a common purpose.
An individual, or an incorporated body that has only one member, is not a society or association. A fund which only holds money to support activities carried out by other entities is also not a society or association.
The members of a society or association do not need to be natural persons. They can be an association of other entities.
Main purpose
Aviation, tourism and the various resources have their ordinary meaning. Industrial resources include building, mining, quarrying, shipping and transport, but don't include business and commercial resources (such as insurance, and services, such as surveying). Pastoral resources include infrastructure, facilities, plant and equipment, personnel, knowledge, expertise and skills relating to the raising of stock on rural properties.
Promoting development can be by various means, including:
- research
- providing facilities
- training
- improving marketing methods
- facilitating cooperation and similar activities.
Example 1: promoting the development of tourism
4WD Adventure Club (the Club) is a NFP association that was formed to encourage tourists to safely and confidently explore Australia’s outback using four-wheel drive (4WD) vehicles.
The Club’s main activities are running a tourist information booth and providing brochures and information to tourists about local attractions that are safely accessible for 4WD vehicles. The Club also runs free weekly guided 4WD tours to local tourist attractions and ‘outback first-aid’ seminars for tourists. The Club's activities that are unrelated to tourism, such as the Club's monthly 4WD trip for members, are minor in extent and importance.
The Club’s main purpose is promoting the development of tourism. It will qualify for the exemption.
End of exampleThe main purpose of the society or association must be promoting the development of the relevant resources. To work out your organisation's main purpose you should look at its constituent documents, activities, use of funds and history. Any other purpose of the organisation must be incidental, ancillary or secondary to promoting development of the relevant resources.
If the organisation's main purpose is merely to provide services to its members, it won't be exempt. This is the case even if the services result in better use of resources by those members.
Example 2: not resource development
A NFP association is set up by a group of horticulture businesses. Its purpose is to buy supplies for the members in bulk and undertake joint marketing of their businesses.
The association is not promoting the development of horticultural resources.
Example 3: not promoting the development of tourism- services to members
Caravan and Camping Club (the Club) is a NFP association that was formed to encourage the pastime of caravanning and assist members to safely enjoy caravanning and camping.
The Club provides information on caravanning and camping best practices and local caravanning and camping facilities to its members through weekly newsletters. It also organises recreational ‘caravan and camp’ trips and offers access to discounted comprehensive insurance policies for its members.
The Club’s main purpose is to provide services and information to its members. It doesn't qualify for the exemption.
End of exampleIf your organisation doesn't meet all the requirements for exemption for this category, you should check the other exemption categories in the Types of income tax exempt organisations.