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.