Federal Budget 2021-22: New Online System for Not-For-Profit tax compliance
Tax Law - 12 May 2021
If you are a not-for-profit entity, the 2021-2022 Budget announcement has implications on your income tax compliance. The income tax exemptions claimed by not-for-profit entities will become more transparent with the Government funding a new online system to assess income tax exemptions.
Currently non-charitable not-for-profit entities can self-assess their eligibility for income tax exemptions at any time, with no obligation to report the outcome of the self-assessment to the Australian Taxation Office (ATO).
In the Budget, the Government announced funding of $1.9 million to the ATO to develop an online system to enhance transparency. With effect from 1 July 2023, an income tax exempt not-for-profit entity with an active ABN will be required to submit an online annual self-review form, including the supporting documentation and information used in the self-review process.
The ATO will be able to use this information and documentation to confirm the self-review process, ensuring the integrity of the not-for-profit income tax concessions.
The information contained in this blog is general in nature and should not be considered to be legal, tax, accounting, consulting or any other professional advice. In all cases, you should consult with a professional advisor familiar with your factual situation for advice concerning specific matters before making any decisions. By reading this blog, you confirm your understanding of this disclaimer.
