Not-for-profit organisations with an ABN that self-assess as income tax exempt must lodge an NFP self-review return by 31 October each year.
In September, we commenced issuing failure to lodge (FTL) penalty notices to organisations that had not lodged their 2024–25 NFP self-review return, despite receiving reminder communications.
'We will continue to issue reminders and apply penalties where organisations do not meet their legal obligations,' said Tom Wheeler, Assistant Commissioner Not-for-profit and Government Experiences.
'Importantly, we are not penalising organisations that respond to our reminders and lodge their outstanding returns. However, organisations that repeatedly ignore lodgment reminders can expect to receive an FTL penalty notice or compliance action to review their eligibility for income tax exemption.'
Penalty amounts vary according to the size of the organisation and can be applied for each overdue reporting period. If you received a penalty notice and are concerned your organisation may have difficulty paying, contact us as soon as possible to discuss support options, including payment arrangements.
Organisations that self-assess as income tax exempt can avoid penalties by:
- lodging your annual NFP self-review return between 1 July and 31 October
- reviewing your organisation’s eligibility for income tax exemption each year, with enough time to lodge by 31 October
- keeping your ABN details and authorised contact information up to date so you receive important reminders and communications from us.
By keeping your records current and lodging on time, you can ensure you've correctly reported your organisation's income tax exempt status and avoid penalties and other compliance action.