The Australian Tax Department requires not-for-profit (NFP) organisations, including sports clubs, to regularly self-review their tax status to ensure compliance with taxation laws and maintain their tax concessions.

What's Required

On 11 May 2021, the Australian Government announced changes to the administration of NFP entities that self-assess as income tax exempt. This was announced as part of the 2021–22 Federal Budget.

The changes require non-charitable NFPs with an active Australian business number (ABN) to lodge an annual NFP self-review return to self-assess their eligibility for income tax exemption.

The annual reporting requirement came into effect from 1 July 2023 and is designed to enhance transparency and integrity in the system, by ensuring only eligible NFPs access income tax exemption.

More information can be found here:

• Reporting requirements to self-assess income tax exemption.

• Video: How to lodge the new NFP self review return

Due Date

For organisations with an income year ending 30 June, the 2023–24 NFP self-review return is due between 1 July and 31 October 2024.

• If you are set up in Online services for business you can lodge your NFP self-review return from 1 July 2024.

• If you can't access online services, you can submit the 2023–24 NFP self-review return by phoning the ATOs Self-help service on 13 72 26.

• If you require additional time to lodge, you don't need to call us to request extra time to lodge your NFP self-review return. The ATO have support available up to 31 March 2025.

A new return must be lodged each income year. NFPs don't need to lodge a NFP self-review return for any income years prior to 2023–24.

If your income year is not the standard tax year of 1 July to 30 June you need to seek approval for substituted accounting periods, more information can be found here.

What Do Golf Clubs Need to Do

• Review guidelines on NFP eligibility and tax concessions.

• How to access and lodge the NFP self-review return

• Prepare to lodge

• Transitional support if you determine you are taxable

Consequence of Not Reporting

Failure to conduct a self-review and report compliance can lead to:

• Loss of Tax Concessions: Increased tax liabilities.

• Financial Penalties: Penalties and interest for unpaid taxes.

• Reputational Damage: Affected community support and funding.

Regular self-reviews are essential for maintaining compliance, protecting tax concessions, and ensuring the sustainability of NFP golf clubs.