Review your tax status
Not-for-profit (NFP) organisations should review their income tax status on a regular basis. We recommend you do a review:
- once a year
- when there is a major change to your organisation's structure or activities.
Charities have a different review process to organisations that can self-assess their income tax status.
Charities should refer to Review your TCC endorsement.
For organisations that can self-assess, we provide worksheets to help you review your organisation's tax status. Once you have completed the relevant worksheet, submit it to your Board or Committee for approval. Keep the completed and approved worksheet with your other records – it will show why and how you worked out income tax status and will help future office bearers.
When we review
We review both income tax exempt and taxable not-for-profit organisations. The reviews help establish whether your organisation is correctly assessing its income tax status.
We may request that you provide information and documents that are relevant to your assessment of your organisation's income tax status. While you must comply with this request, you will be given at least 28 days to provide the required information and documents. Failure to comply can lead to prosecution.
We will provide written notice of the result of the review.
If your organisation has not lodged income tax returns for the period under review and our review shows that your organisation is not income tax exempt, we may require that income tax returns be lodged.
If your organisation has lodged returns and there are inaccuracies in income, deductions or entitlements, we may amend your assessment.
If your organisation is dissatisfied with the review, you can lodge an objection.
Not-for-profit organisations should review their income tax status on a regular basis. We recommend you do a review once a year, or whenever there is a major change to your organisation's structure or activities.