Not For Profit (NFP) Self-Review Return

From the 2023-24 income years onwards Not-For-Profit (NFP) organisations with an active Australian business number (ABN) who self-assess as income tax exempt must lodge an annual NFP self-review return in March.

NFP’s with only charitable purposes that meet the legal definition of a charity must be registered with the ACNC (Australian Charities and Not-for-profits Commission) and be endorsed by the ATO to become tax exempt.

The other type of exempt entity is a non-charitable organisation that meets the requirements to self-assess as income exempt. If these NFP’s have an active ABN, they must lodge the NFP self-review return to notify the ATO of a non-lodgement advice.

Organisations that don’t meet the requirements for income tax exemption are taxable NFP’s and they must lodge an income tax return or notify the ATO of a non-lodgement advice.

There are three ways to lodge your NFP self-review return.

  1. If you’re a principal authority and your details are up to date, you can lodge online using Online services for business.
  2. If you have responses to the return questions ready, have your NFP’s ABN and a reference number listed on any letter the ATO have posted to your organisation, such as the Your annual self-review reporting obligation notice, lodge by phoning our automated self-help phone service on 13 72 26
  3. A registered tax agent can lodge the return on your behalf through Online services for agents.
If you’re unsure if your NFP is charitable or not, you still need to complete the self-review return. You can lodge the return by selecting ‘Yes’ or ‘Unsure’ when answering the charitable purposes question. The ATO may contact you to provide guidance to help determine your charitable status.
If you need more help with lodging your return, you can visit the ATO updated guidance for more information and useful tools at ato.gov.au/NFPtaxexempt.

 

Author

Peta Stephen