ATO "busts" NFP myths

Editor: As the Not-for-profit ('NFP') self-review return is due in March, the ATO has recently published a document 'busting' various NFP 'myths'.

Myth 1: All NFPs are income tax exempt.

ATO response: This is not true. Some NFPs are income tax exempt and some are taxable.

Myth 2: There is only one way to lodge the NFP self-review return.

ATO response: There are three ways, as follows:

• A 'principal authority' may be able to lodge using 'Online services for business’.
• It may be possible for the return to be lodged by phoning the ATO's automated self-help phone service on 13 72 26; and
• A registered tax agent can lodge the return through Online services for agents.

Myth 3: Anyone can lodge the NFP self-review return online.

ATO response: If lodging via Online services for business, anyone authorised to access the return in Online Services can lodge. If a registered tax agent has been engaged, they can also prepare and lodge the return in Online services for agents.

Myth 4: If a person is unsure whether their NFP has charitable purposes, then they do not need to lodge.

ATO response: The self-review return still needs to be lodged, even if it is not certain whether the NFP is charitable.

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Note: The material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.

Publication date: 25 February 2025