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: 

• the Australian Business Register (ABR) 

• ATO’s Online Services for Business 

• 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. 

Contributors

Blake Trad  

The post Late NFP self review return lodgement: ATO suspends penalties appeared first on SW Accountants & Advisors.

For NFPs with a standard year end of 30 June, the return must be lodged by 31 October each year. However, for the 2023-24 income year, the ATO has extended the 31 October deadline to 31 March 2025.

Below is a summary on how to prepare to lodge the return and the ways it may be lodged.

For details of our previous update click here.

Preparing to lodge the NFP self-review return

To prepare for lodgement, organisation should:

• review the organisations governing documents and
• prepare answers to the questions using the NFP self-review return question guide.

In reviewing the organisation’s governing documents, it must contain the appropriate not-for-profit clause and dissolution clause and set out that the organisation is operating for its not-for-profit purpose. The return contains 3 sections with the following key questions:

• What is the estimated annual gross revenue for the organisation?
• Choose a category best reflecting the main purpose of the organisation
• Does the organisation have and follow clauses in its governing documents prohibiting the distribution of income or assets to individuals or members?
• Does the organisation exist, operate and incur its expenditure entirely in Australia?
• Does the organisation have charitable purposes?

Ways to lodge the NFP self-review return

The ATO offers several methods for lodging returns, including:

• online
• through a registered agent and
• over the phone.

Lodging online

If you are an authorised contact for your organisation with access to Online services for business, you can lodge the return online. The ATO outlines the following process for lodging the return using this method:

1. Select either:
   1. View next to the NFP self-review return in the Lodgements section of the For Action panel
   1. NFP self-review return from the Lodgements menu
2. Select Prepare next to the return (you must prepare the oldest return first)
3. Complete the mandatory details
4. Tick the acknowledgments and declaration
5. Select Submit

To note: Due to changes in office holders, many NFPs are unaware of who the authorised contact is for the NFP.  It can be harder to change the authorised contact than to complete the NFP self-review return.  We recommend completing ATO Form NAT 2943 and sending to the ATO to change the authorised contact for your NFP.

Lodging through a registered Tax Agent

If you’ve engaged a registered Tax Agent, they can prepare and lodge your organisation’s NFP self-review return through Online services for agents.

To note: Most NFPs do not have a Tax Agent as they have not had to lodge tax returns in the past. Whilst a lot of NFPs may have engaged a BAS Agent to lodge their Business Activity Statement a BAS Agent can not lodge the NFP self-review return.

Lodging over the phone

The ATO outlines the following process for those choosing to lodge over the phone:

• first review the list of self-review return questions
• prepare your responses to each question and have these with you when you call. You must refer to your governing documents to answer some of the questions
• phone the self-help service on 13 72 26 and select NFP self-review return lodgement
• enter the organisation’s ABN and a reference number listed on any letter we have posted to your organisation, such as Your annual self-review reporting obligation or the Lodge your NFP self-review return notice:
• the ABN will be listed as ‘Client ID’
• the reference number will be listed as ‘Our reference’
• follow the prompts to record your responses and submit the NFP self-review return questions.

Although these methods streamline the lodgement process, organisations with limited access to online resources may still face difficulties.

If so, lodgement of the return over the phone or through a registered agent can mitigate these difficulties.

Post-lodgement

Once the return is submitted, you’ll receive a transaction reference number to retain for your records. This will have a self-assessment outcome of either:

• income tax exempt or
• taxable.

Income tax exempt

If you successfully submitted your NFP self-review return and self-assessed as income tax exempt, the organisation has completed its reporting requirements for this income year. The NFP self-review return will need to be lodged in subsequent years.

If the return was lodged via Online services for business, the return information will be pre-filled for next year, making future lodgements easier

Taxable

If you successfully lodged your NFP self-review return and self-assessed as taxable, the organisation does not qualify for income tax exemption.

Thus, the organisation does not need to complete an annual NFP self-review return. Instead, they must lodge an income tax return or notify of a non-lodgement advice each income year.

How SW can help

We can assist with the preparation and lodgement of the return and assess your border eligibility for income tax exempt status. Please contact our Tourism, Hospitality and Gaming (THG) industry experts and not-for-profit experts.

Contributors

Blake Trad

The post NFP self-review return due 31 March 2025 – How to lodge  appeared first on SW Accountants & Advisors.

The NFP self-review return will be available from the Online Services section of the ATO website from 1 July 2024. It will be due for lodgement between 1 July and 31 October 2024 for 30 June financial year balancers. For details of the previous update click here.

The ATO has released high level information regarding the questions that NFPs will be required to answer on the online NFP self-review return, which includes:

• Organisation details – including annual turnover
• Income tax self-assessment – organisations will need to choose a category (e.g. community service, sporting, etc.) that best reflects the main purpose of the organisation. The ATO has provided some high level instructions to help make this determination including highlighting:
• the appropriate clauses in governing documents that prohibit the distribution of income or assets to members.
• confirming that the organisation exists to operate and incur its expenditure entirely in Australia.
• Examples of the potential questions included on the return and additional information that the ATO will provide to support organisations to complete the questions. 

Assuming answers indicate that an organisation is a tax exempt NFP, the ATO system will then generate a statement:

“Based on the information provided, the organisation has self-assessed as income tax exempt for this income year.”

A declaration is then required to be signed on behalf of the organisation. There is also the option to print a copy of the questions and answers to share with the board, committee or tax agent.

Get in touch with SW

We can assist in your preparation for the new online return. 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.

The post Sporting Clubs 2024 annual return update appeared first on SW Accountants & Advisors.

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.

Contributors

Blake Trad

The post Sporting Clubs 2024 annual return reporting moves a step closer appeared first on SW Accountants & Advisors.

In the 2021 Federal Budget, the former Government announced that it was providing $1.9m to build an online system to enhance the transparency of income tax exemptions claimed by Not-for-profits (NFPs).  From 1 July 2023, NFPs’ seeking to maintain their income tax exempt status will be required to lodge an online Annual Self-Review Form. This is part of the ATO’s recently revised guidance on the games and sports income tax exemption for not-for-profit clubs under Tax Ruling 2022/2.

SW has liaised with the ATO and can confirm that this announcement is still expected to be implemented.

Annual Self-Review Form

The ATO has confirmed the following details:

Lodgement timing

The first return will need to be lodged for the 2023–24 income year, with those clubs with a 30 June year end being the first required to lodge. This means the earliest anyone will be required to submit a return is 1 July 2024.

Who is required to lodge?

Only self-assessing income tax exempt entities (e.g. sporting clubs) with an active ABN are required to lodge a return under the new self-assessing reporting arrangements. For those clubs applying the principles of mutuality as to their income tax obligations, there is no change to existing income tax return lodgement processes.

Entities that do not hold an active ABN, will not be required to lodge a return or satisfy ongoing ABN registration requirements.

Are there additional obligations?

The two additional obligations for ongoing ABN registration are:

• the obligation to comply with income tax return lodgement requirements, and
• the obligation to update the accuracy of details on the Australian Business Register (ABR), annually.

It is intended that the return for self-assessing income tax exempt entities will collect the information required to satisfy the new ABN requirements, without the need for these entities to provide further information.

What information does the Annual Self-Review Form need to include?

The return is not an income tax return but rather a form containing the information that a club would ordinarily use for self-assessing eligibility for income tax exemption on a yearly basis.

The form needs to satisfy three elements:

1. Entitlement to income tax exemption
2. Basis for entitlement (category), and
3. Whether all requirements are being met.

How to prepare for the new reporting regime

There are 3 things your club can do to prepare for the new reporting regime:

1. Update your contact details with the ATO. It’s an ABN registration requirement to keep your contact details current and it also means you’ll receive important information about your tax and super obligations.
2. Use the ATO worksheets to review your eligibility for an income tax exemption.
3. Stay informed.

How can SW help?

If you would like to discuss how to best prepare for the new Annual Self-Review reporting regime and/or broader eligibility for income tax exemptions, please contact us.

Contributors

Alice Mulvogue

The post Clubs – Update on new self-review requirement for income tax exemption appeared first on SW Accountants & Advisors.

Webinar 1 (18 March 2021): Removal of special purpose financial reporting

• Moving from Special Purpose to General Purpose Financial Statements
• Exempt entities
• Requirements of AASB 1060 i.e. New tier 2 General Purpose Financial Statements – Simplified Disclosures
• Applying AASB 1 First-time Adoption of Australian Accounting Standards

Webinar 2 (29 April 2021): Valuation of assets

• Identifying impairment indicators
• Fair valuing assets in accordance with accounting standards
• Estimating key inputs
• Accounting for impairment of assets

Webinar 3 (27 May 2021): Financial Reporting update for 30 June 2021

• Accounting standard changes
• Key focus areas for 30 June 2021 reporting
• ASIC update and focus areas
• Corporate governance update
• Other regulatory changes

Webinar 4 (11 November 2021): Financial Reporting update for 31 December 2021

• Accounting standard changes
• Key focus areas for 31 December 2021 reporting
• ASIC update and focus areas
• Corporate governance update
• Other regulatory changes
• Not-for-profit update
• Employee share schemes update

Series speakers

René Muller
Partner

Tom Mullarkey
Partner

Kerry McGoldrick
Partner

Contact us

If you have any queries or would like more information, please contact the Marketing team via marketing@sw-au.com.

The post Financial Reporting series 2021 appeared first on SW Accountants & Advisors.

• New and recent developments
• FBT recap and hot topics – reducing FBT on cars and car parking due to COVID-19
• Global mobility and impacts of COVID-19 on tax residency and employee tax obligation
• Payroll tax and COVID-19 concessions
• The rise in popularity and attractiveness of employee share and incentive plans (Corporate session only)
• Highlighting not-for-profit rebates and exemptions (NFP & Government session only)

Corporate session

Nor-for-profit & Government session

Contact us

The post Employment Taxes update 2021 appeared first on SW Accountants & Advisors.