From the 2023–24 income year onward, not-for-profits (NFPs) with an active Australian business number (ABN) will need to lodge an annual NFP self-review return to access income tax exemptions.
The NFP self-review return will guide NFPs to consider their organisation's purpose and activities against the requirements of an eligible income tax exempt entity. This will help them determine the basis on which to self-assess as income tax exempt, and report this to us. While NFPs need to report using the self-review return, they won't pay tax on income unless they're a taxable not-for-profit.
NFPs can lodge the NFP self-review return for the 2023–24 financial year any time between 1 July and 31 October 2024. They can submit online through Online services for business, or via a registered tax agent using Online services for agents (if the agent is authorised to lodge on the NFP's behalf).
Get ready for annual reporting
To prepare to lodge an annual self-review return, the organisation's principal authorityExternal Link needs to:
- check the organisation's contact details are up to date, including ABN registration details
- review the organisation’s main purpose and its governing documents
- set up a myGovIDExternal Link with either a Standard or Strong identity strength
- link myGovID to the NFP's ABN in Relationship Authorisation Manager so the NFP can access Online services for business.
If an NFP doesn't submit their NFP self-review return, they may become ineligible for an income tax exemption and penalties may apply.
Who doesn't need to report
Government entities or charities registered with the Australian Charities and Not-for-profits Commission (ACNC) are not required to lodge an NFP self-review return. Charities already lodge an annual information statement to the ACNC each year.
Taxable NFPs are also not required to lodge an NFP self-review return as they lodge an income tax return or notify us of a return not necessary each year.
Annual reporting is central to assuring the community that only eligible not-for-profits access an income tax exemption.
Check Not-for-profits – enhancing the transparency of income tax exemptions regularly for updated guidance. NFPs can also subscribe to our monthly Not-for-profit newsExternal Link for the latest tax and super news, as well as tips and advice, sent directly to your inbox.