• Income tax exemption

    Are all non-profit organisations exempt from income tax?

    No. The income tax law provides that only certain types of non-profit organisations are exempt from income tax.

    Are charities automatically exempt from income tax?

    No. Charities must be endorsed by us in order to access charity tax concessions, including income tax exemption.

    What types of organisations are exempt from income tax?

    There are more than 30 types of exempt entities. They range from registered employer associations to non-profit societies for the encouragement of music, from charitable institutions to non-profit sports clubs, and from public educational institutions to non-profit hospitals.

    Further information

    For more information on the types of income tax exempt entities, refer to Types of income tax exempt organisations.

    End of further information

    If a non-profit organisation does not fall within one of the types of exempt entity it cannot be exempt.

    How do I work out if my organisation is exempt?

    Charities and income tax exempt funds (ITEFs) must be endorsed by us to be exempt from income tax.

    If your organisation is not a charity or ITEF, it can self-assess whether it is exempt from income tax. It does not need to be endorsed by us to be exempt from income tax.

    Further information

    For more information on working out the income tax status of your organisation, refer to Does your organisation have to pay income tax?

    End of further information
      Last modified: 13 Jul 2012QC 16662