If your organisation self-assesses as income tax exempt, this is an important reminder to ensure your NFP self-review return has been lodged.
The Australian Taxation Office (ATO) recently announced it has started issuing failure-to-lodge penalties to not-for-profit organisations that have not submitted their self-review return despite receiving reminder notices. The ATO has indicated that organisations that continue to ignore their lodgement obligations may face penalties and further compliance action.
It is important to remember that this is now an annual reporting requirement. Most not-for-profit organisations with an ABN that self-assess as income tax exempt must lodge an NFP self-review return each year by 31 October.
As the deadline approaches, we encourage NFP boards and management teams to confirm that:
- their organisation remains eligible for income tax exemption
- their ABN and contact details are up to date
- their NFP self-review return has been prepared and lodged.
The ATO has stated that organisations that respond to reminders and lodge outstanding returns will generally not be penalised. However, penalties can apply where lodgement obligations continue to be ignored.
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