Understanding New ATO Reporting Requirements for Non-Charitable NFPs

The Australian Taxation Office (ATO) has introduced a new ‘self-assess’ reporting requirement for non-charitable, income tax-exempt not-for-profits (NFPs) that possess an active ABN. Here are the essential details:

1. Annual Self-Review Return: Starting from 1 July, NFPs need to submit an annual self-review return to confirm their tax exemption status. This process involves a straightforward ten-minute form that includes:

• • • Organisational details estimating gross revenue size.
    • Five eligibility assessment questions.
    • A summary and declaration section.

2. Maintaining ABN Details: It’s mandatory for NFPs to update their ABN details within 28 days of any changes. The ATO provides a downloadable form for this purpose, which must be filled out by authorised or newly appointed contacts.

3. Compliance and Support: The ATO is adopting a practical approach to compliance and will focus on lodgments from the 2023-24 income year. They offer transitional support like lodgment deferrals and payment plans for NFPs that need extra time to meet these obligations.

4. Accessibility: For those unable to use online services, the ATO is setting up a telephone lodgment channel.

This new requirement aims to streamline processes and ensure transparency in the operations of NFPs.

For further assistance, NFPs can view an informative ATO webinar –  or contact our Membership Officer at Landcare NSW – memberships@landcarensw.org.au