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How your organisation can prepare for changes to income tax reporting requirements

22 June 2023

As part of the 2021-22 budget, the Federal Government announced funding to reform the Australian Taxation Office's (ATO) administration of not-for-profit organisations with an active Australian Business Number (ABN) that self-assess as income tax exempt. This reform comes into effect in the 2023-24 financial year starting on 1 July 2023.

What is changing?

From 1 July 2023, not-for-profit organisations with an active ABN that self-assess as income tax exempt will be required to lodge an annual self-review return with the ATO. Previously, not-for-profits have not been required to provide their self-assessments to the ATO, or obtain confirmation of their income tax status.

The ATO is currently developing the self-review return, which is expected to be released in October 2023. The first self-review return will be due between 1 July 2024 and 31 October 2024.

What do the changes mean for your organisation?

The ATO has indicated that the return will result in three likely outcomes, which you can read more about in their June update under the heading ‘How self-review will work at a glance’.

How can your organisation prepare?

The ATO is suggesting your organisation prepare early by taking the following steps to update your contact details and review your entitlement:

  1. Update your contact details with the ATO. It is an ABN registration requirement to keep your contact details up to date. The ATO also use these details to send important information about your tax and super obligations.
  2. Complete the ATO’s worksheet to review your eligibility for an income tax exemption.
  3. Find out about income tax exemption and taxable not-for profits by visiting Income tax exempt organisations.
  4. Stay informed by subscribing to the ATO’s monthly newsletter.

You can also find more about income tax exemption in our free resources, including information on:

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