Mutuality and taxable income for not-for-profits

This guide has been prepared for not-for-profit (NFP) clubs, societies and associations that are taxable – that is, NFP organisations that are not exempt from income tax.

It helps these organisations to:

• work out if they need to lodge an annual income tax return
• calculate their taxable income, including how to treat mutual dealings with their members.

What's new

This guide applies from 1 July 2015 and replaces Mutuality and taxable income (NAT 73436-06.2010) which was released in June 2010. It has been updated to include the law change to the tax rates for not-for-profit companies which occurred since the last edition of the guide.

Find out about:

• Who is this guide for
• Lodgment rules and tax rates
• Taxable income and mutuality
• Classifying revenue
• Classifying expenses
• Separating apportionable items
• Other issues
• Calculating taxable income

See also:

Below is a list of rulings that are referred to throughout this guide:

• GSTR 2002/3 Goods and services tax: prizes
• TR 97/11 Income tax: am I carrying on a business of primary production?
• TR 2004/5 Income tax: taxation treatment of volume rebates paid to a retailer association