As from 1 July 2023, Not-for-profit entities which do not pay
income tax and are not registered as charities, but which are
eligible for exemption from income tax assessment and self-assess
on that basis will be required to file a report with the ATO.
The report is new but the exercise of assessing on an annual
basis whether income tax eligibility is still relevant to all
Not-for-profits is required under existing regulations.
The ATO has for some time been concerned that not only are many
Not-for-profit entities failing to conduct an internal review
annually, but in some cases are actually not eligible to retain
income tax exemption.
The Income Tax Assessment Act 1997 (Cth) will not be
modified to achieve this power, but a legislative instrument called
self-assessing reform tool will be enacted.
