• Tax concessions

    A range of tax concessions are available to not-for-profit (NFP) organisations. Few of the concessions apply to all organisations in the NFP sector. They generally apply to particular types of not-for-profit organisations.

    Regardless of whether your organisation is eligible for concessions, it may still have tax obligations to comply with. For example, obligations for GST, FBT and PAYG withholding – see Registering your organisation.

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

    The table groups NFP organisations as follows:

    • charities – including public benevolent institutions and health promotion charities
    • other NFP organisations.

    The table also refers you to more information about each concession.

    There are also concessions for:

    • public and NFP hospitals and public ambulance services
    • religious institutions and GST concessions for charities, gift deductible entities and government schools
    • non-profit companies and live-in residential care workers.

    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.

    Table: Summary of tax concessions and types of NFP organisations

    Tax concessions Types of NFP organisations
    Public benevolent institutions and health promotion charities Charities Other NFP organisations

    Income tax exemption

    Yes

    Note 1

    Yes

    Note 1

    Yes

    Certain types only - Note 2

    FBT exemption (subject to capping threshold)

    Yes

    Note 1

     

    Yes

    Certain types only - Note 3

    FBT rebate

     

    Yes

    Note 8

    Yes

    Certain types only - Note 4

    GST concessions for charities and gift deductible entities

    Yes

    Note 1

    Yes

    Note 1

    Yes

    Certain types only - Note 5

    GST concessions for NFP organisations

    Yes

    Yes

    Yes

    Deductible gift recipients

    Yes

    Note 6

    Yes

    Certain types only - Note 6

    Yes

    Certain types only - Note 6

    Refunds of franking credits

    Yes

    Note 7

    Yes

    Note 7

    Yes

    Certain types only - Note 7

    Notes to table

    1. The organisation must be endorsed by us to access this concession, see Endorsement requirements.
    2. Only certain types of NFP organisations are exempt from income tax. Many NFP 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.
    3. Public and NFP hospitals and public ambulance services are eligible for this concession, see FBT exemption.
    4. Certain non-government NFP organisations are eligible for this concession, see FBT rebate.
    5. The organisation must be a deductible gift recipient to access this concession - see Deductible gift recipients.
    6. The organisation must be endorsed by us 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 tax law, see Deductible gift recipients.
    7. The organisation must be an entity that is endorsed by us as exempt from income tax or a deductible gift recipient to access this concession, see Refunds of franking credits.
    8. The organisation must be endorsed by us to access this concession. Not all charities are eligible for this concession, see FBT rebate.

    See also:

    Last modified: 20 Jul 2015QC 33596