Late NFP self review return lodgement: ATO suspends penalties
15/04/2025
The ATO has introduced an annual self-review return requirement for non-charitable NFP organisations with an active Australian Business Number (ABN) to confirm their eligibility for income tax exemption. The inaugural NFP self-review return for the 2023–24 income year was due by 31 March 2025.
Please refer to our previous article for details on the questions found in the return.
What happens if you lodge your return late?
If your NFP has missed the 31 March 2025 deadline, it is important to submit the return as soon as possible. The ATO has suspended penalties for late lodgement of the 2023-24 return with its transitional support for the NFP sector.
From July 2025, the ATO will review NFPs that intentionally ignore their obligations and non-compliant NFPs may face further scrutiny and potential tax liabilities.
Steps to take if you haven’t lodged yet
If your NFP has not yet submitted the return, the following steps will help you fulfil your obligations and demonstrate to the ATO you’ve taken action:
Lodge your return immediately
NFPs can submit their self-review return using the ATO’s Online Services for Business or the self-help phone service at 13 72 26. A registered tax agent can also assist with lodgement.
Updating your NFPs ABN details
Accurate ABN details are essential for tax-exempt eligibility. If your organisation’s details have changed, update them via:
- submitting a Change of Registration Details form.
If a Change of Registration Details form has already been lodged and is pending, the ATO will acknowledge this during their records review.
Future compliance and potential reviews
The ATO is committed to supporting NFPs that make genuine efforts to meet their obligations. However, from July 2025, organisations that ignore their self-review return requirements and fail to engage with the ATO may face:
- compliance reviews
- financial penalties and
- loss of income tax exemption.
How SW can help
To avoid repercussions and maintain compliance, ensure your organisation submits the self-review return as soon as possible and keeps up with ongoing reporting requirements.
Our NFP experts can assist with the preparation and lodgement of the return and assess your border eligibility for income tax exempt status.
