ATO Changes

Michael is wearing a blue and white stripe check business shirt, he's looking over his right shoulder to the camera and smiling

Advice From ASCCA’s Accountant, Michael Ludowici

The Australian Taxation Office has introduced a new form for not-for-profit entities who don’t presently lodge an income tax return.  The form is to be called an NFP self-review return.  The form will have to be lodged annually from the current 2023-24 tax year.  It appears that the form will have to be lodged online.

This new form will affect all our members that hold an ABN except those who presently lodge an Income Tax Return, are a tax exempt government entity, or who are charities registered with the Australian Charities and Not-for-profits Commission (ACNC).

The form has not yet been made available but a guide is available on the questions that will be asked and can be viewed on the ATO website, linked here.

You won’t be able to lodge the form until July but affected members should prepare for its introduction, primarily by reviewing their Constitution to ensure it includes a prohibition on distributions to members.  Clubs should also appoint someone who will be responsible for preparation of the return.  The responsible person will need to obtain a myGovID and link it to the ABN of the Club.  Please note, myGovID is a poorly named identity verification and has nothing to do with your myGov account.

Helpful guidance is available on the Tax Office website, we found the articles in this link  and this link helpful.

Michael Ludowici
ASCCA Accountant