Non-charitable NFPs with an active Australian business number (ABN) will soon need to lodge their annual NFP return to self-assess as income tax exempt.
Lodgments will commence from the 2023–24 income year. You can lodge the annual NFP self-review return on behalf of your clients anytime between 1 July and 31 October online, through Online services for agents if authorised to do so.
Get ready to lodge
The NFP self-review return will guide your NFP clients to consider their organisation's purpose, activities and any specific eligibility requirements for their exempt category. While your NFP clients self-assessing as income tax exempt must lodge an NFP self-review return, they will not pay tax on their income unless they are a taxable NFP.
Your NFP client can lodge the NFP self-review return in Online services for business or authorise you to lodge on their behalf in Online services for agents.
To get ready to lodge their return, your NFP client's principal authorityExternal Link needs to:
- check their organisation’s details are up to date, including addresses, associates and authorised contacts
- review the organisation’s main purpose and its governing documents
- set up a myGovIDExternal Link
- link myGovID to the NFPs ABN in Relationship Authorisation Manager (RAM) to access Online services for business.
If your clients don't submit their return by the due date, lodgment penalties may apply.
Who doesn't need to lodge
A government entity, a charity registered with the Australian Charities and Not-for-profits Commission (ACNC), a State or Territory body, and an NFP sub-entity for GST purposes are not required to lodge the annual NFP self-review return.
Taxable NFPs are also not required to lodge as they already lodge an income tax return or notify us of a return not necessary each year.
More information
- We've made it easier for NFPs to update their details by making the Change of registration details form (NAT 2943) available for download directly from our website at ato.gov.au/NFPnotifyofchanges. It's accompanied by updated guidance that will assist NFPs to successfully complete and submit their change of details.
- Subscribe to the Not-for-profit newsletter for the latest tax and super news, as well as tips and advice around the new reporting requirements.
- Guidance is also updated regularly at ato.gov.au/NFPtaxexempt.