The Australian Taxation Office (ATO) says changes in reporting obligations for non-charitable not-for-profit organisations will start from July 1, 2023.

According to the ATO, non-charitable not-for-profits with an active Australian Business Number (ABN) who self-assess as income tax exempt will need to comply with the new reporting obligations. However, registered charities with the Australian Charities and Not-for-profits Commission (ACNC) are exempt from these requirements, provided they meet ongoing obligations. Organisations can review their tax status using the ATO’s worksheets, which are available on their website.

The new return is still in development and will be available for lodgment from July 1, 2024. The return will consist of questions focusing on purpose and activities, with one question related to estimating income range.

Organisations who do not qualify for income tax exemption and do not wish to become registered charities will be considered taxable not-for-profits and required to lodge an income tax return.