New Reporting Requirements for NFPs Who Self-Assess as Income Tax Exempt

The new reporting requirements specifically impact NFPs with an active Australian Business Number that self-assess as income tax exempt. This includes social clubs, sporting and recreational organisations, professional trade groups and other non-charitable NFPs. The new measure does not impact ACNC-registered charities, government entities, State or Territory bodies, NFP sub-entities for GST purposes (ie branches or units of an NFP that account for GST separately) and taxable NFPs (NFPs that pursue a purpose, not profit, but are nonetheless subject to income tax).

Under these changes, affected NFPs are required to lodge annual returns with the ATO. The first return must be lodged between 1 July and 31 October 2024. The return will require the following details:

  • Estimated annual gross revenue for the NFP.
  • Nominating an income tax exempt category that the NFP self-assesses under (including community service, cultural, educational, employment, government and NFP sub-entities, health, resource development, scientific and sporting).
  • Specific details from the NFP’s governing document (ie its rules, constitution or trust deed).
  • Whether the NFP operates and incurs expenditure principally in Australia or overseas.
  • Whether the NFP pursues any charitable purposes (in which case, it may be required to register as a charity).

The eligibility requirements for the income tax exemption self-assessment categories have not changed, although there are penalties for failure to lodge the returns.

We know many volunteer-involving organisations are NFPs who may be impacted by these changes. As these organisations were previously able to self-assess as income tax exempt without needing to lodge a return with the ATO, it is likely that some organisations may not be aware of these new reporting requirements. Accordingly, we have prepared a video outlining the changes and some steps you should take to ensure you are compliant with the new reporting requirements. We encourage you to listen carefully to the changes and check with the ATO and your internal governance systems if your organisation is likely to be impacted by these changes.

Resources on the Tax Changes for Not-for-Profits

We know that many Volunteer Involving Organisations are NFPs who may be impacted by these changes. Accordingly, we’ve got some resources available on our Knowledge Base outlining the tax changes for not-for-profits.

We encourage you to read these carefully, before checking with the ATO and your internal governance systems whether your organisation might be impacted.

Access Resource

Next Steps

The following resources are available to support the adoption of the new tax changes for not-for-profits:

Members of The Centre for Volunteering can also access pro bono legal advice from Hall and Wilcox subject to meeting eligibility criteria.

It’s important not to leave this until tax time. Start the process early and check whether your organisation is impacted by the tax changes now.

Spread the Word

Some NFPs may not be aware of the tax changes due to previously being able to self-report without lodging with the ATO. We encourage you to share this information with your networks.


The content on this page was last updated on Thursday 30 May 2024 and is not legal advice. Conditions apply to members accessing pro bono legal advice from Hall and Wilcox. See the page on Pro Bono Legal Assistance for more details. 


The Centre for Volunteerring, Tax Changes for Not-for-Profits