Reminder – Lodgement of NFP Self-Review Return Due Soon
Clubs are reminded that last year not-for-profits (NFP’s) who have an active ABN and self-assess as being income tax exempt were informed they would now be required to lodge an annual self-review return with the ATO.
The first self-review return, for the 2023-24 income year, was initially due by 31 October 2024, however the ATO announced that they are providing NFPs with additional time, where required, to lodge the first NFP self-review return up to 31 March 2025.
There was no need to contact the ATO to request this extension and the additional time can just be taken to lodge where needed.
If not already lodged, then member clubs who previously self-assessed as being income tax exempt need to look to lodge the return by the above extended deadline.
The NFP self-review return should not be too complex, and it has around 5 questions under 3 broad sections. The key questions are:
- What is the estimated annual gross revenue for the organisation?
- What category best reflects the main purpose of the organisation?
- Does the organisation have and follow clauses in its governing documents that prohibit the distribution of income or assets to individuals or members?
- Does the organisation exist, operate and incur its expenditure entirely in Australia?
- Does the organisation have any charitable purposes?
Clubs can lodge the return themselves or get a registered tax agent to lodge it for them on their behalf. Whilst the return should be able to be done easily enough by someone at the club, to be safe some may wish to have a tax professional fill it out instead.
Once the self-review return is lodged a transaction reference number should be received to retain with your records and an outcome of either income tax exempt or taxable will be received.
Most returns should result in the above being automatically processed at the time of lodgement.
If clubs are after further information and/or are looking to find where they can lodge the return online they can visit this page.
Clubs that have further queries about this return should speak to their accountant or another tax professional ASAP.
