What associations need to know about new ATO requirements
Updating association leaders in attendance on the NFP self-review return was Jennifer Moltisanti, Assistant Commissioner – Not For Profit Centre, Australian Tax Office (ATO).
From 1 July, ABN registered non-charitable NFPs need to lodge an annual NFP self-review return confirming income tax exemption status. We have informed our clients and newsletter subscribers of the new requirements first in January, however Jennifer offered some updates, including a comprehensive fact sheet, that were particularly useful. Key takeaways were:
- The law hasn’t changed, but reporting of eligibility has.
- The return takes about 10 minutes to complete, which will include:
- Organisational details, including one question about estimating the gross revenue range as small, medium or large
- Five questions to test eligibility
- Summary and declaration.
- You can complete an early self-review to help you to prepare your answers before tax time.
- It is important that your ABN details are updated prior to lodging the return. Change of registration details form must be completed (downloadable form – NAT 2943) and returned by mail only.
- Although the form states that only an authorised contact can complete it, if prior associations are unknown or uncontactable, the ATO will accept the form from a newly appointed contact if you provide evidence of your approved nomination.
- If an organisation’s current or prior associate is known and listed on ATO records, you can notify a change to an associate immediately using Online services for business (OSB).
- The NFP self-review return can be lodged using OSB, or a registered tax agent can lodge using Online services for agents.
- An interim telephone lodgement service will be available for NFPs that can’t use OSB (this service is not available to larger NFPs that already report for GST and PAYGW).
- In July, the ATO will issue a second letter confirming the return is available for lodgement (first letters were sent through March to May).
- The ATO is taking a practical compliance approach to help NFPs meet the new reporting requirement:
- Don’t panic if you think you’ve made a mistake or need more time
- Transitional support arrangements for NFPs who may need more time include engagement and education (instead of penalties), payment plans for organisations that identify they’re taxable NPF for the 2023-24 income year, and remission of general interest charges and other penalties.
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Visit the ATO website for latest updates on NFP self-review return.
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