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  • Application for endorsement for charity tax concessions

    If you are a charity registered with the Australian Charities and Not-for-profits Commission (ACNC) you may be eligible for tax concessions. If you have previously registered with the ACNC and now need to be endorsed by the ATO to access charity tax concessions, you should use this form

    If you are not registered with the ACNC, do not complete the application for endorsement for charity tax concessions.

    Completing your application

    Download the Application for endorsement for charity tax concessions (NAT 10651, PDF, 284KB)This link will download a file.

    See also:

    On this page:

    Who should use this application

    Charities use this form to apply for ATO endorsement to access one or more of the following charity tax concessions:

    • income tax exemption
    • goods and services tax (GST) charity concessions
    • fringe benefits tax (FBT) exemption
    • FBT rebate.

    Section A: Applicant information

    1 Your organisation's Australian business number (ABN)

    This must be the ABN of the entity itself – an ABN held by a non-profit sub-entity is not sufficient.

    If your organisation does not have an ABN, refer to How to apply for an ABN.

    Section B: ACNC registration information

    4 What 'sub-entity type' best describes your organisation?

    Different tax concessions are available depending on what type of sub-entity your organisation is. To determine your organisation's 'sub-entity type', view its ACNC registration details at acnc.gov.au

    Section C: Income tax exemption

    Your charity is entitled to be endorsed for income tax exemption if it:

    • has an ABN
    • is a registered charity with the ACNC
    • meets at least one of the following three tests  
      • In Australia test
      • Deductible gift recipient test
      • Prescribed by law test
       
    • meets both of the following conditions  
      • Governing rules condition
      • Income and assets condition.
       

    See also

    6 To what extent does your organisation pursue its purposes outside Australia?

    Examples

    LQ College

    LQ College's purpose is to train teachers in particular techniques. It works throughout Australia and the South Pacific. About a quarter of its training is conducted outside Australia. LQ College would type '25'.

    QW Ministries

    The purpose of QW Ministries is to 'have the gospel spread in Queensland and Papua New Guinea' by its itinerant preachers. A third of its activities occur in Papua New Guinea. QW Ministries would type '33'.

    End of example

    7 What percentage of your organisation's expenses is devoted to pursuing its purposes outside Australia?

    Examples

    If LQ College in the question 6 example spends half of its budget on offshore training, it would type '50'.

    If QW Ministries in the question 6 example spends only a quarter of its budget on its Papua New Guinea operations, it would type '25'.

    End of example

    9 From what date do you wish your organisation to be endorsed for income tax exemption?

    The endorsement date can be retrospective.

    The endorsement date is not the actual date your charity lodged its application for endorsement. It is the date it met the requirements to be endorsed by us for charity tax concessions.

    Example

    A charity was established and has operated since 15 July 2017. It has met the requirements for endorsement for income tax exemption from that date. The charity lodged its application for endorsement in September 2017. However, its endorsement for income tax exemption can start from 15 July 2017. Income it earned from that date is then exempt from income tax.

    End of example

    Section D: GST concessions

    To be endorsed to access GST charity concessions the charity must meet the following requirements:

    • have an ABN
    • be a registered charity with the ACNC.

    There are no additional tests to be endorsed for GST charity concessions.

    11 From what date do you wish your organisation to be endorsed for GST charity concessions?

    The endorsement date can be retrospective.

    The endorsement date is not the actual date your charity lodged its application to be endorsed for GST charity concessions. It is the date it had an ABN and was registered with the ACNC.

    Example

    A charity lodges its application for endorsement for GST charity concessions in March 2016. It had an ABN and was registered with the ACNC from 30 January 2016. Its endorsement can start from 30 January 2016.

    End of example

    Section E: FBT exemption

    FBT (fringe benefits tax) exemption is an exemption from paying FBT capped at $30,000 per employee.

    FBT exemption is only available to registered PBIs or registered HPCs. It does not apply to hospitals.

    See also:

    13 Is your organisation a hospital?

    An FBT exemption is provided to both public hospitals (government-controlled or not) and hospitals controlled by non-profit societies or associations (that are not charities). These hospitals do not need to seek endorsement to access the FBT exemption.

    However, if a hospital is controlled by a non-profit society or association that is a charity, the non-profit society or association must be endorsed for the FBT rebate to claim the FBT exemption.

    Public hospitals that are charities will need to be endorsed to access income tax exemption and GST concessions.

    A hospital cannot be endorsed as an FBT exempt PBI. A hospital employer is limited to the $17,000 FBT-concessional capping threshold for each employee and not the $30,000 cap applicable to PBIs.

    14 From what date do you wish your organisation to be endorsed for FBT exemption?

    The endorsement date can be retrospective. It is the date your charity had an ABN and met the requirements for endorsement for this concession.

    Example

    A registered PBI lodges its application for endorsement for FBT exemption in January 2017. It had an ABN and met the requirements for endorsement for this concession from 15 December 2016. Its endorsement can start from 15 December 2016.

    End of example

    Section F: FBT rebate

    The FBT rebate is not available to registered charities that are:

    • not institutions
    • registered PBIs or registered HPCs - these organisations are eligible for the FBT exemption
    • institutions of the Australian Government, a state or a territory (for example government run public universities, public museums and public art galleries).

    See also

    16 Is your organisation an institution?

    A charitable institution is an institution established and run to advance or promote a charitable purpose. An entity’s purposes are determined from its governing documents and from its activities, history and control.

    An institution is not a:

    • structure with a small and exclusive membership that is controlled and operated by family members and friends and carries out limited activities
    • fund.

    A charitable fund is a fund established under an instrument of trust or a will for a charitable purpose. It must do one or both of the following:

    • manage trust property
    • hold trust property to make distributions to other entities.

    17 From what date do you wish your organisation to be endorsed for the FBT rebate?

    The endorsement date can be retrospective.

    Examples

    A registered charity that is an institution was endorsed for income tax exemption from 30 June 2017. It met the requirements to be endorsed for the FBT rebate from 30 June 2017. The charity applies for endorsement to access the FBT rebate in October 2017. However, its endorsement can start from 30 June 2017.

    A registered charity lodges its application for endorsement to access the FBT rebate and income tax exemption in May 2017. It met the requirements for endorsement for both concessions from 1 April 2017. Its endorsement for income tax exemption and the FBT rebate can start from 1 April 2017.

    End of example

    Section G: Declaration

    The declaration must be signed by one of the following people or a person authorised by them:

    • the trustee of the trust
    • an office holder of the association
    • a director of the company
    • the company secretary
    • a public officer of the company.

    Lodging your application

    Send your completed application to:

    Australian Taxation Office
    PO Box 3373
    PENRITH  NSW  2740

    Feedback

    We welcome your feedback on our publications and services. If you would like to comment on the tax concession charity endorsement application form, email us at npc-publications@ato.gov.au

    Last modified: 11 Jan 2018QC 24062