PAA has compiled some relevant ATO information for your consideration which are:
1. ATO Fact Sheet - NFP Self-Review Return (See attachments)
2. A copy of the ATO slides used at the Australian Sports Commission presentation (See attachments)
3. Extracts of key ATO information (presented below)
Why the new annual NFP self-review return is required for active ABN holders of non-charitable NFP
The ATO has advised the following information (Slide 10, ATO presentation to the Australian Sports Commission).
- From the 2023-24 income year, non-charitable not-for-profit with an ABN are required to lodge an annual self-review return to notify us of its eligibility to income tax exemption.
- The new return is important because entities inaccurately self-assess income tax exemption for a range of reasons, which can be due to common misunderstandings or assumptions.
- The requirement to lodge will be established by an update to the Taxation Laws (Requirement to Lodge a Return for the 2024 Year) Instrument 2024 - expected to be registered by Parliament in May-June 2024.
- The first lodgment is due for the 2023-24 income year, as part of Tax Time.
- If a return is not lodged, penalties may apply under the ATO’s penalty framework.
ATO - Changes in reporting requirements for sporting clubs
Not-for-profits (NFPs), including sporting clubs, societies and associations, with an active Australian Business Number (ABN) need to lodge an annual NFP self-review return to continue accessing income tax exemption.
The NFP self-review return will guide you to consider your sporting organisation's purpose and activities against the requirements of an eligible income tax exempt entity.
You need to lodge your first NFP self-review return for the 2023–24 income year, between 1 July and 31 October 2024.
If your organisation has its own ABN, you'll need to complete your own NFP self-review return even if it’s affiliated with a broader sporting group.
Eligible Income tax exempt entity:
https://www.ato.gov.au/businesses-and-organisations/not-for-profit-organisations/statements-and-returns/in-detail/reporting-requirements-to-self-assess-income-tax-exemption/who-needs-to-lodge
Additional Information:
https://www.ato.gov.au/businesses-and-organisations/not-for-profit-organisations/not-for-profit-newsroom/changes-in-reporting-requirements-for-sporting-clubs
Income tax exemption and sporting clubs
A guide for office bearers and advisers of non-profit clubs for self-assessing if their club is exempt from income tax.
https://www.ato.gov.au/businesses-and-organisations/not-for-profit-organisations/your-organisation/in-detail/income-tax/income-tax-exemption-and-sporting-clubs
ATO - How our advice and guidance protects you
Find out about the advice and guidance we provide to help you understand your rights and obligations.
https://www.ato.gov.au/about-ato/ato-advice-and-guidance/how-our-advice-and-guidance-protects-you
