Sporting Clubs 2024 annual return reporting moves a step closer
15/12/2023
The ATO website has been updated to advise Not-For-Profits (NFPs), including sporting clubs, that they are required to lodge their first NFP self-review return for the 2023-24 income year, between 1 July and 31 October 2024.
First announced in the 2021 Federal Budget, NFP’s including sporting clubs, societies and associations, with an active Australian business number (ABN) need to lodge an annual NFP self-review return to continue accessing income tax exemption. Find out more about the original announcement here.
The annual return reporting is part of the ATO’s revised guidance on the games and sports income tax exemption for NFP clubs under Tax Ruling 2022/2, aiming to enhance the transparency of income tax exemptions.
Lodgement period
Their first NFP period is between 1 July and 31 October 2024. The lodgement period will differ for clubs who don’t adopt a 30 June financial year end however, specifics are yet to be determined by the ATO.
How to prepare
The lodgement of the self-review return marks a major change in the reporting obligations for Not-For-Profit clubs as to maintaining their income tax exempt status. It is imperative that clubs take all necessary steps prior to the lodgement deadline to ensure they have appropriate documentation and procedures in place to support their income tax exemption classification and to be prepared to lodge the self-review return with appropriate disclosures.
In order for NFPs to prepare for the new online self-review return the ATO has outlined what organisations need to do:
- check to see if you have an active ABN
- identify your main purpose
- complete an Early Self Review – this Early Self Review form has just been released and the ATO has indicated that the questions in this checklist will be similar to the questions asked in the online return that will be required to be lodged next year.
- setup your myGovID and Relationship Authorisation Manager (RAM) to allow you to complete the NFP self-review return
- subscribe to the ATO’s monthly Not for Profit newsroom
Get in touch with SW
We can assist in your preparation for the new online return and completing the Early Self Review. To discuss your broader eligibility for income tax exempt status, please contact our Tourism, Hospitality and Gaming (THG) industry experts and not for profit experts.
