ClubPack (current to 19 June 2003)

Introduction

This document has been archived. It is current only to 19 June 2003.

Publications about taxation & the non-profit sector

CharityPack is for charities

CharityPack:

• helps you work out if you are a charity
• explains the new endorsement arrangements
• tells you how to apply for endorsement as an income tax exempt charity (ITEC), and
• outlines ABN, GST, PAYG, FBT and other taxes and obligations for charities.

ClubPack is for clubs, societies and associations which are not charities

ClubPack :

• helps you work out if your organisation is exempt from income tax
• explains your obligations if your organisation is not income tax exempt, and
• outlines ABN, GST, PAYG, FBT and other taxes and obligations for clubs, societies and associations.

GiftPack is for organisations that wish to receive income tax deductible gifts

GiftPack explains:

• who can receive tax deductible gifts
• the new endorsement arrangements
• what sorts of gifts are deductible, and
• what donors have to do to claim deductions for their gifts.

Additional publications:

A range of fact sheets and booklets including Charitable, Religious and Non-profit organisations & The New Tax System - withdrawn , are also available from sources listed in this guide. For a copy of the GST Handbook for the voluntary sector phone 13 30 88.

The information in this guide is current at June 2000.

Please get help from the ATO or a professional tax practitioner if you feel this guide does not fully cover your circumstances. We regularly revise our publications to take account of changes to the law and you should make sure that this edition is the latest. Any changes or developments occurring between editions will be explained in updates which you should request from the ATO.

As part of our commitment to producing accurate publications, a taxpayer will not be subject to penalties if it is demonstrated that a tax claim is based on wrong information contained in this guide. However, interest could be payable depending on the circumstances of the case.

About this guide

ClubPack has been prepared by the Australian Taxation Office (ATO) to help non-profit clubs, societies and associations understand their income tax entitlements and obligations.

How will this guide help you?

ClubPack will help you understand:

• how to work out if you are exempt from income tax
• the income tax obligations for organisations that are not income tax exempt, and
• even if your organisation is exempt from income tax, how other taxes and obligations may still apply.

ClubPack provides information on:

• the Australian Business Number (ABN)
• goods and services tax (GST)
• Pay As You Go (PAYG)
• fringe benefits tax (FBT), and
• State and Territory government taxes.

Who should use ClubPack?

You should use this guide if you are a non-profit club, society or association, whether incorporated or not. Common examples are sporting and recreational clubs, professional and business associations, and cultural and social societies.

Some types of organisations are not covered by ClubPack :

• companies set up to provide profits to their owners or members
• co-operatives, credit unions and partnerships
• entities established by will or instrument of trust
• government instrumentalities, and
• charities.

What about income tax exemption?

Clubs, societies and associations that are not charities can self-assess their income tax status and do not need to apply to the ATO for income tax exemption. Only some specified groups of organisations are exempt from income tax. To see if you qualify, check Income tax - are you exempt?

If you are a charity, you will need to be endorsed as income tax exempt by the ATO and should refer to the publication CharityPack . Most clubs, societies and associations are not charities. If you are unsure whether you are a charity, check Appendix 2 - Are you a charity?

What about taxable organisations?

Clubs, societies and associations that are not exempt have special income tax arrangements. These are explained in Income tax - taxable organisations

What about gift deductibility?

Clubs, societies and associations can only receive gift deductibility status if they comply with the criteria set out in income tax law. The majority of such organisations do not quality. For further information on gift deductibility, see the publication GiftPack .

What will The New Tax System mean for non-profit bodies?

The New Tax System starts on 1 July 2000. It has special features for non-profit bodies:

• giving a higher threshold for GST registration
• providing a single identifier for dealings with government
• maintaining income tax exemption for specified groups of non-profit bodies
• streamlining the payment of income tax for other non-profit bodies, and
• simplifying tax withholding arrangements.

ATO references:
NO NAT 13727