Changes in reporting requirements for not-for-profits

New reporting obligations for non-charitable NFPs are now in effect.

Effective from 1 July 2024, non-charitable not-for-profit organisations (NFPs) with an active Australian Business Number (ABN) must submit an annual NFP self-review return to self-assess for income tax exemption.

Under the changes, not-for-profit organisations must notify the tax office of their tax exemption status or start paying income tax.

This requirement will impact a variety of non-charitable not-for-profit organisations, who may not be aware of what their new obligations entail. 

Examples of those likely to be impacted by the change include grass-roots community organisations and sports organisations such as your local AFL, Soccer, and Netball clubs—organisations that are primarily run and managed by volunteer committees. 

The changes are a reflection of the increased expectations of the NFP sector to provide assurance and transparency. 

“As an adviser in this space to many NFP organisations and having been actively involved in these organisations, I have a great deal of first-hand experience in these matters. It is essential for committee members to be aware of these requirements to ensure they meet their governance obligations and consider any potential financial reporting consequences."

Three tips for volunteer committees lodging an NFP self-review

Three quick tips for those volunteer committees contending with new reporting obligations:

1. Visit the ATO and ACNC websites. They have many good guidance materials to help you through this process.
2. Allocate enough time to complete the self-review. Although the ATO has granted an extended deadline, it's best to avoid waiting until the last minute. The deadline for lodging is now 31 March 2025.
3. If you feel that you need help, reach out to your local RSM adviser for assistance.

You can lodge the NFP self-review return for the 2023–24 financial year any time between 1 July 2024 and 31 March 2025. It can be submitted online through Online Services for Business, or by a registered tax agent using Online Services for Agents if authorised to lodge on your behalf.
 

FOR MORE INFORMATION

If you would like to learn more about the topics discussed in this article, please contact your local RSM office or contact Domenic Zappa at [email protected]