NFP tax, super and registry responsibilities checklist

1. All NFPs

1.1 Legal requirement to update ABN details

• Notify changes to your associates or authorised contacts to reflect incoming and outgoing appointments on the board or committee within 28 days of the change.
• The easiest way to update your registration details is online if the outgoing contact is recorded on our records and appoints the new contacts.
• If there are no currently authorised contacts on our records then you need to complete the Change of registration details (NAT 2943) paper form.
• It's important to remove associates and authorised contacts from both your banking and ATO records when they leave the organisation. This will reduce the risk of unauthorised transactions being made on behalf of the organisation.

Go to Notifying us of changes to your not-for-profit

1.2 Director ID requirements

• You need a director IDExternal Link if you're a director of:
  • a company that is registered with the Australian Securities & Investments Commission (ASIC)
  • a registered Australian body, with an Australian registered body number (ARBN), for example an incorporated association registered with ASIC, like sporting clubs that trade outside of their state or territory
  • an Aboriginal and Torres Strait Islander corporation registered with the Office of the Registrar of Indigenous Corporations (ORIC)

Go to Directors of NFP organisations and clubs need a director ID

1.3 Review governing documents

• NFPs are required to have governing documents that set out its purpose, NFP character, and how it's governed, operates and makes decisions.
• To demonstrate its NFP character, your NFP must have and follow clauses in its governing documents that prohibit the distribution of income or assets to members while operating and winding up.
• To ensure your NFP's governing continue to reflect your NFP's main purpose and activities, you should review its governing documents:
  • annually, and
  • whenever there is a major change to structure or activities.

Go to NFP governing documents

2. Self-assessed income tax exempt NFPs

2.1 Self-assessing NFPs with an active ABN

• From 1 July 2023, non-charitable NFPs with an active ABN must lodge an annual NFP self-review return to notify their eligibility to self-assess as income tax exempt.

Go to Do you need to lodge?

2.2 NFP self-review return lodgment is up to date

• If your NFP is self-assessing as income tax exempt, it's legally required to lodge an NFP self-review return by 31 October each year.
• The fastest way to lodge your NFP self-review return is by using Online services for businessExternal Link.
• If you can't lodge online, you can use our 13 72 26 automated self-help phone service to lodge.

Go to Reporting requirements to self-assess income tax exemption

3. NFP charities

3.1 Australian Charity and Not-for-profit Commission (ACNC) registration

• NFPs with only charitable purposes that meet the legal definition of a charity must be registered with the ACNC and be endorsed by the ATO to be income tax exempt.

To assess if your NFP has only charitable purposes and is eligible to be registered as a charity, use the charity registration self-assessment tool on the ACNC websiteExternal Link.

4. Deductible gift recipient (DGR) endorsement

4.1 Review deductible gift recipient (DGR) status

• Organisations endorsed as a DGR are entitled to receive gifts or donations which are deductible from the donor's income tax. DGRs are either:
  • endorsed by us and fall in a general DGR category
  • in exceptional cases, listed by name in the tax law.
• From 14 December 2021, all non-government DGRs are required to be a registered charity, except for ancillary funds or DGRs that are specifically listed in tax law.
• For more information on entitlement to endorsement and how to apply, see Apply for DGR endorsement

Once endorsed as a DGR, you must inform us in writing if your organisation stops being entitled to endorsement.

Go to Review your DGR endorsement

5. Taxable NFPs

5.1 Income tax return lodgments are up to date

• Work out if you need to lodge an income tax return or if you should notify us of a non-lodgment advice, check if your organisation is:
  • a taxable NFP company, including incorporated and unincorporated associations
  • a taxable trust or partnership
  • another taxable company, including incorporated and unincorporated associations.
• Taxable NFP companies with more than $416 of taxable income are required to lodge their income tax return by 15 May after the reporting period has finished.
• Taxable NFP companies with $416 or less of taxable income have the option of notifying a NFP non-lodgment advice.
• Taxable NFP trusts and partnerships and other taxable companies must lodge an income tax return each year as the $416 threshold does not apply to them.
• The Mutuality and taxable income for not-for-profits guide will help you work out which income is assessable.

Go to Taxable NFP organisations

6. NFPs with more than $150,000 turnover

6.1 GST registration and business activity statement (BAS) lodgments are up to date

• NFPs with more than $150,000 turnover are legally required to register for GST.
• NFPs with less than $150,000 turnover can voluntarily register to claim GST credits.
• Once registered, NFPs are required to submit a monthly, quarterly or annual business activity statement.
• Failure to pay GST correctly can result in the directors of the organisation being held personally liable and issued with a director penalty notice.

Go to GST for not-for-profits

7. NFPs employing staff

7.1 PAYG withholding registration and lodgments are up to date

• NFPs employing staff who are not volunteers are legally required to be registered for PAYG withholding.
• It is a requirement to report PAYG withholding to us as part of your regular pay cycle to employees.
• Failure to pay PAYG withholding for employees correctly can result in the directors of the organisation being held personally liable and issued with a director penalty notice.

Go to PAYG withholding

7.2 Super guarantee (SG) payments are up to date

• NFPs employing staff who are not volunteers are legally required to pay their eligible employees SG.
• Employers must pay the correct amount of SG to their employee’s nominated super fund by the due date.
• Failure to pay SG correctly can result in the directors of the organisation being held personally liable and issued with a director penalty notice.

Go to Super for employers

7.3 Fringe benefits tax (FBT) registration and lodgments are up to date

• NFPs that provide fringe benefits and have an FBT liability, must register for FBT and lodge an FBT return.
• If your NFP provides fringe benefits to employees, it may be eligible for a FBT exemption or rebate.
• NFPs that are registered for FBT but don't need to lodge must send us a Fringe benefits tax – notice of non-lodgment

Go to FBT concessions for not-for-profit organisations

8. NFPs who need to make payments to the ATO

8.1 Payments for all applicable tax obligations are up to date

The easiest way to check that your income tax, GST, PAYG withholding or FBT payments are up to date or apply for a flexible payment plan is by using Online services for businessExternal Link.