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Changes to Tax Reporting for Not-for-Profit Organisations

Starting with the 2023/24 financial year, Not-for-Profit Organisations (“NFPs”) that have an active Australian Business Number (“ABN”) will be required to lodge a NFP Self-Review to maintain an income tax exemption.  The Self-Review will need to be lodged between 1 July and 31 October following each financial year.

What is Involved in the NFP Self Review?

The NFP self-review will require NFPs to outline the purpose and activities of their organisation. Additionally, they must detail any specific requirements that grant them exemption.  These are outlined in Division 50 of the Income Tax Assessment Act 1997 and relate ot the following exemption categories:

  • Community Service Organisations
  • Cultural Organisations
  • Health Organisations
  • Employment Organisations
  • Resource Development Organisations
  • Scientific Organisations
  • Sporting Organisations

To file the review, the relevant principal authority, being a person responsible for the business, needs to:

  • confirm the organisation’s details are current, including addresses, associates and authorised contracts;
  • review governance documents and the main purpose of the NFP;
  • have a MyGov ID; and
  • Link the MyGov ID to the NFP’s ABN to access online services with the Australian Taxation Office.

There will be penalties for those NFPs that do not comply with the new provisions.

Who Does Not Have to Lodge the Review?

There are specific types of entity that are exempt from filing the review.  These are government entities, charities that are registered with the Australian Charities and not-for-Profits Commission (ACNC), state and territory bodies and NFP sub-entities for GST purposes.

Additionally, taxable NFPs are not required to lodge, due to their previous lodgements of income tax returns, or if they have notified the Australian Tax Office that a return is not necessary to be filed for that year.

What does This Mean for Businesses and NFPs?

For NFPs, this is a significant change, and it is important that they take the time to understand the new processes, to ensure efficiency and compliance at the end of the financial year.  Please contact Darren Sheen at or Henry Jones at for any assistance.