July marks the beginning of a new financial year – a time for all taxpayers including not-for-profits (NFP) to reset, review, and refocus. It’s also tax time, and with that comes the opportunity to strengthen financial foundations, plan for the year ahead, and ensure your NFP is on track to deliver impact.
The start of July is also a time of deep cultural significance as we celebrate NAIDOC Week. This year marks 50 years of honouring Aboriginal and Torres Strait Islander peoples, and the theme 'The Next Generation: Strength, Vision & Legacy' invites us to reflect on the past, empower the present, and invest in the future. It’s a call to honour the legacy of Elders, uplift young Indigenous leaders, and commit to building a future grounded in respect and inclusion.
At the opening of NAIDOC Week, I was visiting Rainbow Beach in Cooloola, Queensland, where I respectfully acknowledged the traditional lands of the Butchulla and Kabi Kabi peoples. Wherever I travel across Australia, I make it a point to acknowledge the Traditional Owners and learn about Indigenous history – especially the stories that have been passed down through generations. It’s part of my personal commitment to reconciliation.
On this trip, I discovered that in December 2019, the Federal Court formally recognised the Butchulla people's native title rights over land and waters between Rainbow Beach and Burrum Heads. This followed their first determination in 2014, which acknowledged their rights over K’gari (Fraser Island). I also came across the beautiful legend behind Rainbow Beach’s name. According to the Kabi Kabi people, the rainbow-coloured dunes – now heritage-listed – were formed when Yiningie, a spirit represented by a rainbow, plunged into the cliffs after battling an evil tribesman who was pursuing the maiden Murrawar. These stories are powerful reminders of the deep spiritual connection between land and culture.
As we continue to celebrate NAIDOC Week and every day after, let’s continue to listen, learn, and honour the legacy of Aboriginal and Torres Strait Islander peoples – past, present, and future.
For not-for-profits, this is a timely reminder to:
- Recognise the legacy of First Nations Elders and leaders who have paved the way.
- Support the strength and vision of young Indigenous changemakers.
- Review your organisation’s role in fostering culturally safe and inclusive spaces.
- Build partnerships with First Nations organisations that uplift community voices.
Here are some additional important messages I’d like to share with all NFPs.
Tax Time 2025: lodge your NFP self-review return today!
Tax Time 2025 kicked off on 1 July, and the second NFP self-review return is now open for lodgment, and due by 31 October 2025.
We understand that many NFPs haven’t yet lodged their first return – often due to the time needed to set up access to Online services for business. But don’t wait! You can lodge your return now while completing your digital setup.
Lodge using our self-help phone service by calling 13 72 26 – have your organisation’s ABN and the reference number from your ATO letter ready when you call.
If your NFP doesn't have a letter from us with a reference number, phone us on 13 28 66 to ask us to resend a letter. When you phone us, you'll have to prove you are authorised to contact us on behalf of your NFP.
The ATO will support NFPs trying to do the right thing and has suspended penalty application for late lodgment of the 2023–24 NFP self-review return as part of the transitional support arrangements for the sector.
However, penalties may apply if you don’t lodge your 2024–25 NFP self-review return by the due date.
Shaping a strategic roadmap for the NFP sector
At our upcoming NFP Stewardship Group session, we’ll focus on developing a strategic roadmap to guide tax, superannuation, and registry administration through to 2030 and beyond. This initiative reflects our commitment to building a system that is streamlined, fit for purpose, and aligned with the government’s goal of doubling philanthropy by 2030.
So far, we’ve engaged a diverse range of stakeholders through targeted interviews to gather insights on common challenges, barriers, and opportunities. Their contributions are helping us shape a roadmap that supports NFPs in meeting their obligations with confidence, while enhancing public trust in the sector.
The response from the sector has been overwhelmingly positive, with many expressing interest in joining the Stewardship Group and contributing to this important work. These sessions mark the beginning of a collaborative journey, with many opportunities ahead for stakeholders to contribute, test, and validate ideas before any commitments are made.
Once finalised, the roadmap will outline a coordinated set of projects and activities designed to ensure the sector is well-positioned for long-term sustainability and compliance. We look forward to continuing this work with the broader stakeholder community in the months ahead.
Clarifying DGR eligibility for community sheds
We continue to receive Deductible Gift Recipient (DGR) applications from NFP organisations that do not meet the open membership requirements under the community sheds category.
Community sheds are charities whose dominant purpose is to advance mental health and prevent or relieve social isolation. A community shed must be open to the community to join and generally not impose criteria restricting membership based on matters such as age, ethnicity or background. Rejecting an application for arbitrary reasons will not constitute open membership.
Membership may only be restricted in relation to gender or Indigenous heritage or both.
To meet the open membership requirement, community sheds must:
- have a clear policy and process for nominating and approving all new members without exception
- ensure this process is reflected in their governing rules
- avoid clauses that allow committee members to reject applicants for unspecified or arbitrary reasons.
We encourage all applicants to review their governing documents carefully and ensure they align with the ATO’s requirements before submitting a DGR application.
If you have questions or need support, our advice service on 1300 130 248 is here to help between 8:00 am to 6:00 pm AEST, Monday to Friday.
Community charities ready to apply for DGR endorsement
Community charities that are already listed in a Ministerial Declaration and have registered as a charity with the Australian Charities and Not-for-profits Commission (ACNC), can now contact us for guidance on how to apply for DGR endorsement. The best way is to call our dedicated NFP Advice Service on 1300 130 248 between 8:00 am and 6:00 pm, Monday to Friday. Alternatively, you can email atoendorsements@ato.gov.au
Support through Australian disaster relief funds (ADRF)
In times of disaster, Australians come together to support those in need. An Australian disaster relief fund (ADRF) is a public fund established exclusively to provide financial assistance to individuals and communities affected by officially declared disasters. This includes both immediate aid and long-term support for community recovery.
You can also make a meaningful impact by donating to established DGRs operating in affected areas. These may include public benevolent institutions (PBIs) and other public assistance organisations that provide similar support in their day-to-day operations. By contributing to trusted organisations, your donation helps deliver timely and effective relief to those who need it most.
The most recent updates to the list of declared disasters are:
- Ex-Tropical Cyclone Alfred declared on 1 March 2025
- Queensland Floods (March 2025) declared on 21 March 2025
- New South Wales Floods (May 2025) declared on 18 May 2025.
Details of the declared disasters are available on the Australian Taxation Office website on the list of disasters or by going to www.ato.gov.au and searching for QC 18912.
Ancillary Funds
In the lead-up to the end of the financial year, we received a noticeable increase in enquiries to our advice service from ancillary funds.
A reminder to all private and public ancillary funds – each is governed by its own set of guidelines, which must be followed to ensure compliance.
Website updates
You may have noticed that our website content for DGR endorsement has been updated. While the content remains largely unchanged the information has been organised so that it can be accessed more easily, and you will notice that it has been arranged in five tiles that cover:
- DGR categories
- DGR reforms
- Applying for DGR endorsement
- Rules and tests for DGR endorsement
- Progress of your endorsement application.
Similarly, all the NFP self-review return information has been reviewed and updated as of 8 July 2025.
TD 93/190 – income tax exemption for community service organisations
We’re reviewing and rewriting TD 93/190 to update legislative references and clarify the criteria NFP organisations must meet to qualify for an income tax exemption.
The revised ruling will:
- reflect current legislation, including all special conditions under Subdivision 50A of the Income Tax Assessment Act 1997
- explain how 'community service purposes' should be interpreted
- include relevant case law and practical examples of NFP entities that do and do not qualify for the exemption.
Getting tax ready: your EOFY checklist
As you can see, there’s a lot happening in July – and it’s never too late to get tax ready! Whether you're finalising reports or planning ahead, here are some key reminders to help your NFP stay on track:
- Review your financial records – make sure everything is accurate and up to date.
- Finalise payroll and superannuation – ensure all obligations are met before deadlines.
- Prepare your annual reporting – this includes ACNC submissions, any grant acquittals, Ancillary Fund Returns, NFP self-review returns and Income tax lodgments.
- Acknowledge your donors – send out end-of-year receipts and thank-you messages.
- Plan for the year ahead – reflect on your impact, set goals, and build a strong foundation.
Tax time is also a great opportunity to highlight your achievements. Share your impact, thank your supporters, and show how their support and contributions have made a real difference.
Let’s start the new financial year with clarity, confidence, and purpose.
Take care and stay safe,
Jennifer.