Non-charitable not-for-profits with an active ABN, including sporting clubs, now need to report annually to the Australian Taxation Office to maintain their income tax exemption. The reportable self-assessment will need to be lodged through a Not-for-Profit (NFP) Self-Review Return from the 2023-24 financial year onwards.
Sporting organisations also need to meet a range of criteria to maintain the exemption, including an organisational purpose of encouraging a game, sport or animal racing, ensuring income and assets are applied solely for the organisational purpose, and complying with all substantive requirements set out in the organisation’s governing rules (such as a constitution).
NFP Self-Review Returns for the 2023-24 income year are due between 1 July and 31 October 2024.
Organisations can get ready for the new reporting requirements by:
- confirming whether they have an active ABN;
- notifying the ATO of any updates to their registered address and responsible persons;
- identifying their main purpose and any relevant governing documents, such as a constitution;
- completing an early self-review on the ATO’s website; and
- getting in early with lodgement of the NFP Self-Review Return, to avoid losing the income tax exemption and incurring any penalties.