Being a not-for-profit doesn't automatically make you exempt from paying income tax. Social clubs or associations generally don't meet the requirements for income tax exemption as either:
- A registered charity with the Australian Charities and Not-for-profit Commission, or
- One of the 8 categories eligible to self-assess exemption as outlined in Division 50 of the Income Tax Assessment Act 1997.
If your social club or association's main purpose is providing social and recreational facilities or activities for your members to pursue their common interests, your organisation is taxable.
If your social club or association is taxable you need to lodge your income tax return or notify us of a non-lodgment advice each year. Find out what you need to lodge at Taxable NFP organisations.
Example: a social club for retired persons
Intellectual Interest Club (the Club) is a NFP company limited by guarantee that was established to advance the intellectual and cultural interests of its members, who must be retired professionals. The Club holds monthly dinners for members to discuss their intellectual and cultural interests and to build social connections. The Club also conducts regular wine tasting nights and organises holiday trips for its members.
The Club’s main purpose is to provide a social forum for its members, who are retired professionals, to pursue their common interests.
The Club has not been established for community service purposes. It does not have an altruistic purpose to promote, provide or carry out activities, facilities or projects for the benefit or welfare of the community or for any members of the community who have a particular need by reason of youth, age, infirmity or disablement, poverty or social or economic circumstances. It does not qualify for the exemption.
End of exampleLearn more at Community service organisations.
Lodging a 2023-24 NFP self-review return
If your social club is taxable and recently received a letter from us requesting lodgment of a NFP self-review return, submit the NFP self-review return by 31 March 2025 to notify us of its taxable status.
The easiest way to do this is to phone our self-help phone service on 13 72 26 and:
- Press 12 for 'The organisation's main purpose is not listed' at the question asking 'Choose a category that best reflects the main purpose of the organisation'
- Submit a 'Summary and declaration' as a taxable outcome
You will receive a confirmation letter in the post outlining your next steps to take to meet your annual income tax reporting obligations.