A not-for-profit (NFP) organisation can close for a number of reasons. Whatever the reason, before you stop operating your NFP, you need to make sure all your tax affairs are in order. This will help the process go smoothly and help you avoid any tricky later surprises.
Your lodgment, reporting and payment obligations could include:
- cancelling your NFP's ABN and any other tax registrations. Cancelling your NFP's ABN will also cancel your access to GST and FBT concessions, income tax exemption and DGR status, so make sure you don't have anything else you need to do before you cancel your registrations. For example, you must have lodged all your required activity statements, even if there is 'nil' to report.
- taking care of any capital gains tax (CGT) you may need to pay if you have disposed of any property or assets. If your NFP is not exempt from income tax it is treated as a company for income tax purposes.
- transferring all remaining gifts, deductible contributions and money received in relation to such gifts and contributions to a gift deductible fund, authority or institution before the NFP is wound up, if your NFP is an endorsed deductible gift recipient (DGR).
- lodging any outstanding returns, such as the NFP self-review return if your NFP has self-assessed as income tax exempt, or an income tax return, if you NFP is taxable.
To find out more about any of the points above, visit Ending your organisation.
In addition:
- If your NFP has any employees, you must first take care of their final pay and superannuation.
- If your NFP is a charity, find out what you need to do at the Australian Charities and Not-for-profits Commission (ACNC)'s website at Wind up your charityExternal Link.
Once you are ready to close your organisation, tell us by phone on 1300 130 248 between 8:00 am and 6:00 pm, Monday to Friday.