Starting from the 2023-24 income year, not-for-profit (NFP) organisations, including sporting clubs, societies, and associations with an active Australian Business Number (ABN), must lodge an annual NFP self-review return to maintain their income tax exemption status.
It’s time to ensure that, if this applies to you, you know the key steps and considerations for sporting organisations to prepare for this new requirement.
The NFP self-review return is designed to help your sporting organisation evaluate its purpose and activities against the criteria for income tax exemption. Here are the essential points:
To ensure your organisation is ready to lodge the NFP self-review return, follow these steps:
Failure to lodge the NFP self-review return may make your organisation ineligible for income tax exemption, and penalties may apply. Ensuring timely and accurate lodgment is crucial to maintaining your tax-exempt status.
Your organisation’s main purpose must be encouraging a game, sport, or animal racing. Here’s how to determine and document this:
For many sporting organisations, the primary purpose will be evident through activities directly related to their game, sport, or animal racing.
Adhering to the new requirement of lodging an annual NFP self-review return is essential for not-for-profit sporting organisations to maintain their income tax exemption.
By following the outlined steps and ensuring that your organisation’s purpose and activities align with the criteria for tax exemption, you can avoid penalties and continue to benefit from this status.
For more tailored support and guidance, why not speak with your trusted tax adviser?
IMPORTANT NOTICE
This blog post contains general information only and has been prepared by Allworths without reference to your objectives, financial situation or needs. Allworths cannot guarantee the accuracy, completeness or timeliness of the information contained here. By making this information available to you, we are not providing professional advice or recommendations. Before acting on any of the information contained here, you should seek professional advice.