Tax concessions - an overview - Tax basics for non-profit organisations

Note: This document forms part of our publication Tax basics for non-profit organisations.

Introduction

There are a range of concessions available to non-profit organisations. Few of the concessions apply to all organisations in the non-profit sector – they generally apply to particular types of non-profit organisations.

The table below provides a summary of tax concessions and the types of non-profit organisations that can access them.

The table groups non-profit organisations as follows:

• charities – public benevolent institutions, health promotion charities, charitable institutions and charitable funds
• income tax exempt funds, and
• other non-profit organisations.

The table refers you to more information about each concession. For an explanation of each type of non-profit organisation see Types of non-profit organisations.

There are also concessions for:

• Public and non-profit hospitals and public ambulance services – see FBT exemption
• Religious institutions – see Religious institutions and GST concessions for charities, gift deductible entities and government schools
• Non-profit companies and live-in residential care workers – see Non-profit companies and live-in residential carers

Table of concessions

Summary of tax concessions and types of non-profit organisations

It is important to check the notes to the table, as your organisation may need to meet certain requirements before it can access a concession.

Tax concessions	Types of non-profit organisations
	Charities			Income tax exempt funds	Other non-profit organisations
	Public benevolent institutions and Health promotion charities	Charitable institutions	Charitable funds
Income tax exemption	(1)	(1)	(1)	(1)	Certain types only (2)
FBT exemption (subject to capping threshold)	(1)				Certain types only (3)
FBT rebate		(1)			Certain types only (4)
GST concessions for charities and gift deductible entities	(1)	(1)	(1)	(5)	Certain types only (5)
GST concessions for non-profit organisations
Deductible gift recipient	(6)	Certain types only (6)	Certain types only (6)	(6)	Certain types only (6)
Refunds of franking credits	(7)	(7)	(7)	(7)	Certain types only (7)

Notes to the table

1. The entity must be endorsed by the Tax Office to access this concession – see Endorsement requirements for charities and income tax exempt funds.
2. Only certain types of non-profit organisations are exempt from income tax. Many non-profit organisations are taxable, but may be entitled to special rules for calculating taxable income, lodging income tax returns and special rates of tax – see Income tax exemption.
3. Public and non-profit hospitals and public ambulance services are eligible for this concession – see FBT exemption.
4. Certain non-government non-profit organisations are eligible for this concession – see FBT rebate.
5. The entity must be a deductible gift recipient to access this concession – see Deductible gift recipients.
6. The entity must be endorsed by the Tax Office as a deductible gift recipient to access this concession. The only organisations that do not need to be endorsed are those listed by name in the tax law, including prescribed private funds – see Deductible gift recipients.
7. The entity must be an income tax exempt charity, income tax exempt fund, or deductible gift recipient to access this concession – see Refunds of franking credits.

Last Modified: Thursday, 18 September 2008

Relying on our information - our commitment to you

We are committed to providing you with advice and guidance you can rely on, so we make every effort to ensure that what we give you is correct.

If you follow our advice or guidance and it turns out to be incorrect, or it is misleading and you make a mistake as a result, we will take that into account when determining what action, if any, we should take.

Some of the advice and guidance on this website applies to a specific financial year. This is clearly marked. Make sure you have the information for the right year before making decisions based on that information.

If you feel that our advice and guidance does not fully cover your circumstances, or you are unsure how it applies to you, contact us or seek professional advice.

Copyright

© Commonwealth of Australia

This work is copyright. You may download, display, print and reproduce this material in unaltered form only (retaining this notice) for your personal, non-commercial use or use within your organisation. Apart from any use as permitted under the Copyright Act 1968, all other rights are reserved.

Requests for further authorisation should be directed to the Commonwealth Copyright Administration, Copyright Law Branch, Attorney-General’s Department, Robert Garran Offices, National Circuit, BARTON ACT 2600 or posted at http://www.ag.gov.au/cca.