Governance self review guide for Government organisations

1. Tax governance

1.1 Effective tax governance

• Effective tax governance means having clear processes and procedures in place in a governance framework to support decision making and to ensure that tax and super obligations are met.
• This includes strong internal controls, including a clear and well-documented tax control framework.
• Frameworks should be tailored to your circumstances. For larger government organisations to have effective tax governance, it's important that the following 3 core elements are present across each of the 7 principles of effective tax governance:
  • Existence – a tax control framework, and the processes and procedures in the framework, exist
  • Design effectiveness – the framework, processes or procedures in the framework have been designed effectively
  • Operational effectiveness – the framework, processes and procedures are operating effectively to ensuring that tax obligations are met.
• The Seven principles that should be present in an effective tax governance framework are:
  • Principle 1 – Accountable management and oversight
  • Principle 2 – Recognise tax risks
  • Principle 3 – Seek advice
  • Principle 4 – Integrity in reporting
  • Principle 5 – Professional and productive working relationship
  • Principle 6 – Timely lodgment and payments
  • Principle 7 – Ethical and responsible behaviour.

For more information see Seven principles of effective tax governance.

2. Australian business number (ABN)

2.1 Legal requirement to update ABN details

• Like business entities, government organisations are entitled to an ABN under the ABN Act.
• Apply for an ABN using the ABR’s Application for ABN registration for government organisations form (call 13 28 66 to request).
• Update ABN details within 28 days of any changes, supported by formal documentation (for example, gazettal notice or administrative order).
• Keep authorised contacts current, including Relationship Authorisation Manager (RAM), and update promptly if roles change or contacts leave.
• If your organisation’s structure changes and you need to cancel your ABNExternal Link, ensure all lodgment, reporting and payment obligations are met first.
• You can update your details online through the Australian Business Register (ABR)External Link, Online Services for Business (OSB), by phoning us on 13 28 66, or lodge a Change of Registration Details formExternal Link(PDF, 411KB).
• If you experience difficulty accessing or using our online services, you can visit Online services help for information on known system issues, scheduled and unscheduled outage information, as well as information on troubleshooting common errors.

See Update your details to let us know if there have been any changes to your business.

3. Goods and services tax (GST)

3.1 Maintain GST registration

• Government organisations with a GST turnover of $75,000 or more must register for GST and lodge business activity statements (BAS).
• If you're a Government Related Entity (GRE) that is not a Government organisation, you must cancel your GST registration when you cease to carry on an enterprise.
• If you issue Recipient Created Tax Invoices (RCTIs)
  • confirm the supplier is GST-registered before issuing an RCTI – you can use ABN LookupExternal Link to check if an entity is registered for GST
  • regularly check that the supplier remains GST-registered if you continue issuing RCTIs
  • make sure other RCTI requirements are met and GST credit claims are correct.

3.2 GST on specific transactions

• It's important to regularly review processes and procedures to ensure that GST obligations are met and transactions are correctly reported.
• Where one-off, complex or material transactions occur, ensure these are subject to appropriate consideration, review and sign-off.
• Ensure that you correctly apply GST treatment of grants. GST Ruling 2012/2: Financial assistant payments provides examples of when payments such as grants are consideration for a supply and relevant GST consequences apply.
• Payments made by a GRE to another GRE for a supply are not subject to GST if specific conditions are met. It's recommended that internal controls are in place to ensure that such transactions are properly documented.
• GST concessions are available to some eligible government organisations such as government schools and gift deductible entities.
• Not all taxes, fees or charges imposed by government organisations are GST-exempt. Use the process on Payments to government agencies under Division 81 to work out if a tax, fee or charge is subject to GST.
• Industry-specific GST guidance is available for certain sectors. For instance, health, residential care, home care, container deposit scheme and property.

For more information see GST for government.

4. Employer obligations

4.1 Maintain FBT registration and lodgments

• Generally, government organisations must pay FBT on benefits provided to employees.
• Government organisations are not eligible for FBT exemptions or rebates available to not-for-profit (NFP) organisations, except for public hospitals and ambulance services (up to a capped amount).
• As most government organisations are income tax exempt, they are subject to the rules for tax-exempt body entertainment fringe benefits.
• FBT responsibilities vary across different levels of government. State and territory governments can also devolve the administration and payment of FBT to a departmental level.
• The FBT year runs from 1 April to 31 March. You must lodge your FBT return and pay the FBT you owe by 21 May, unless either
  • your tax agent lodges your return electronically – in this case the due date is generally 25 June, or
  • the ATO accepts your request for an extension of time.

For more information see FBT for Government.

4.2 Maintain super guarantee (SG) payments

• Government organisations must pay SG contributions to eligible employees’ super funds.
• Payday Super is a change to how you calculate and when you pay your employees’ SG. From 1 July 2026, super must be paid at the same time as salary and wages.
• SG is:
  • calculated as 12% of an employee's qualifying earnings (QE), which is a new term that brings together ordinary time earnings (OTE), salary sacrifice contributions and other amounts that are currently included in an employee's salary or wages for super guarantee
  • paid to an employees’ super fund on payday and received by the super fund within 7 business days (unless an extended timeframe applies, such as for new employees).
• If you pay independent contractors mainly for their labour, they are considered employees for SG purposes. You may need to pay super to a fund for them. Visit Super for independent contractors for more details.
• For guidance on how work out if your worker is an employee or independent contractor, visit Employee or independent contractor.

For more information see Super for employers.

4.3 Maintain PAYG withholding registration and lodgments

• Government organisations must register for PAYG withholding if they withhold tax from payments made to workers and businesses.
• All employers should use Single Touch Payroll (STP) reporting to report on salary and wages, PAYG withholding and super liabilities.
• To form a PAYG withholding branch, ensure that you satisfy all requirements before lodging the application form.

For more information see PAYG withholding.

5. Taxable payments annual reports (TPAR)

5.1 Lodge and maintain TPAR

• A TPAR must be lodged by 28 August each year, for payments made to contractors for certain services during the financial year.
• These services include:
  • building and construction
  • cleaning
  • courier and road freight
  • information technology (IT)
  • security, investigation or surveillance.
• For full details, visit Payments businesses need to report in their TPAR.
• If you’re a federal, or state and territory government organisation, and you’ve paid grants to individuals or organisations with an ABN (excluding other government organisations), these must be reported.

For more information see TPAR for government organisations.

6. Deductible Gift Recipients (DGR)

6.1 Review DGR status if applicable

• DGR-endorsed organisations can receive tax-deductible gifts or donations which are deductible from the donor's income tax.
• Endorsement may apply to:
  • the organisation as a whole, or
  • a specific fund, authority or institution, it operates.
• DGRs are generally endorsed by the ATO, or in exceptional cases, listed by name in the tax law.
• While Government organisations are not generally eligible for DGR endorsement as a whole organisation, they may be eligible for DGR endorsement in part for a fund or institution they operate, or if listed by name in the tax law.
• To check eligibility or to apply, see Apply for DGR endorsement.
• You must notify the ATO in writing if your organisation is no longer entitled to endorsement.

For more information see Review your DGR endorsement.

7. Machinery of Government (MoG) changes

7.1 Practical steps to manage tax, super, and registry obligations during MoG changes

• Confirm the MoG change:
  • review the Administrative Arrangements Order (AAO) which specifies the date on which the MoG change takes effect
  • if the AAO specifies the date on which a government organisation (the losing agency) is abolished, the losing agency will not exist on or after that date, and have its functions transferred to another government organisation (the gaining agency).
• ABN obligations:
  • update ABN details within 28 days – these include entity name, ABN, authorised contacts, address, and business activities
  • update Relationship Authorisation Manager (RAM) roles
  • if the organisation is abolished, cancel ABN after final reporting obligations (for example BAS and TPAR lodgments) and payments are met.
• GST obligations:
  • all transactions undertaken by the losing agency before the date of the MOG change need to be reported in its concluding BAS. To claim GST credits (if eligible), ensure you have valid tax invoices or RCTIs for purchases made during transition
  • if the government organisation is abolished, lodge final BAS then cancel GST registration. Cancelling GST registration can impact on other tax obligations such as PAYGW, FBT and your eligibility to claim fuel tax credits
  • private rulings issued to a losing agency can't be relied upon by a gaining agency. GST private rulings can only apply to the entity the ruling was given to.
• FBT obligations:
  • review the extent and nature of your government organisation's FBT obligations as a result of any MoG changes that have occurred during the FBT year.
• Super obligations:
  • confirm super guarantee obligations for transferred employees and contractors
  • ensure correct fund membership continuity when employees move between organisations
  • update payroll systems for Payday Super (from 1 July 2026) to reflect new employer details and contribution rates.
• PAYG withholding:
  • ensure STP reporting reflects new ABN
  • when a government organisation is restructured, merged, or renamed, it’s often hard to update systems quickly to show the new structure. In these circumstances, where staff have moved between organisations and continue to perform essentially the same role, the guidelines outlined in Restructure of government organisations will apply.
• Internal controls:
  • update tax governance framework to reflect new responsibilities
  • retain gazettal notices, AAOs, and transfer agreements for audit and compliance
  • communicate changes to stakeholders and update contact details.
• It's important you keep accurate and complete records to help meet you tax and super obligations.