Prepare to self-review tax exemption

From 1 July, NFPs that self-assess income-tax exemption and have an active Australian business number will be required to lodge an annual self-review return.

The return contains the information ordinarily used for self-assessing eligibility for income-tax exemption.

A first return must be lodged for the 2023–24 income year, which means the earliest date for submitting a return is 1 July 2024.

The tax office continues to work with the NFP sector to design the form. At a minimum, it will need to satisfy three elements:

  • Entitlement to income-tax exemption,
  • Basis for entitlement (category), and
  • Whether all requirements are being met.

 There are three things NFPs may do to prepare:

  • Update their contact details with the ATO. ABN registration requires contact details to be up-to-date. Important information about tax and super obligations will go to the right address,
  • Use ATO worksheets to review their eligibility for income-tax exemption, and
  • Stay informed.