Getting started - POI Australia

7112015 Getting started for nonshyprofit organisations

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Getting started

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A nonshyprofit organisation is an organisation that is not operating for the profit or gain (either direct of indirect) of itsindividual members This applies both while the organisation is operating and when it winds up

When you set up a nonshyprofit organisation it is important to choose an appropriate legal structure Differentstructures are available with different consequences

Nonshyprofit organisations have a range of concessions available to them However few concessions apply to allorganisations in the nonshyprofit sector shy they generally apply to particular types of nonshyprofit organisation

In order to access tax concessions and comply with your organisations tax obligations your organisation mayneed to

register for an Australian business number (ABN) goods and services tax (GST) fringe benefits tax (FBT)and pay as you go (PAYG) withholdingobtain endorsement to access tax concessions The types of organisations that need to be endorsed arecharities and income tax exempt funds

You need to know if your nonshyprofit organisation is exempt from income tax or not Only certain types of nonshyprofitorganisations are exempt Many nonshyprofit organisations are taxable and may need to lodge income tax returnsand pay tax These organisations may have special rules and concessions applied in working out their income taxobligations They also need to be aware of capital gains tax issues that can apply and the PAYG instalmentssystem

If your nonshyprofit organisation has a turnover equal to or greater than the GST registration threshold for nonshyprofit organisations you must register for GST You can also choose to register if your organisations turnover isless This decision should be based on your organisations administrative needs There are ways you can registerfor GST to suit the structure of your organisation and other GST concessions are available

Stamp duty payroll tax and land tax may apply to your nonshyprofit organisation These taxes are governed byindividual state and territory governments Enquiries about these taxes should be directed to the relevant statedepartment

Is your organisation non-profit

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Nonshyprofit organisations operate in many areas of society They can include

church schoolschurchescommunity child care centrescultural societiesenvironmental protection societiesneighbourhood associationspublic museums and librariesscholarship fundsscientific societiesscoutssports clubssurf lifesaving clubstraditional service clubs

A nonshyprofit organisation is an organisation that is not operating for the profit or gain of its individual memberswhether these gains would have been direct or indirect This applies both while the organisation is operating andwhen it winds up

Any profit made by the organisation goes back into the operation of the organisation to carry out its purposes andis not distributed to any of its members

We accept an organisation as nonshyprofit where its constituent or governing documents prevent it from distributingprofits or assets for the benefit of particular people shy both while it is operating and when it winds up Thesedocuments should contain acceptable clauses showing the organisations nonshyprofit character The income taxlaw does not prescribe the words that a nonshyprofit organisation must have in its constituent documents Thefollowing example clauses would be acceptable provided that other clauses do not contradict them Theorganisations actions must be consistent with this requirement

Example clauses

Nonshyprofit clause

The assets and income of the organisation shall be applied solely in furtherance of its aboveshymentionedobjects and no portion shall be distributed directly or indirectly to the members of the organisation exceptas bona fide compensation for services rendered or expenses incurred on behalf of the organisation

Dissolution clause

In the event of the organisation being dissolved the amount that remains after such dissolution and thesatisfaction of all debts and liabilities shall be transferred to another organisation with similar purposeswhich is not carried on for the profit or gain of its individual members

A nonshyprofit organisation can still make a profit but this profit must be used to carry out its purposes andmust not be distributed to owners members or other private people



Choosing a legal structure

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When setting up a nonshyprofit organisation it is important to choose an appropriate legal structure

The legal structure you choose will affect the way you hold meetings the minimum number of membersreporting requirements tax obligations cost and other considerations

We cant advise which structure you should choose An exception however is for public and private ancillary fundsas the tax law requires these funds be established and maintained under a will or instrument of trust

Whichever structure you choose for your nonshyprofit organisation make sure you understand the responsibilitiesthat go with that structure

Speak to a solicitor accountant or registered tax agent The help they can provide will enable you to make aninformed decision

Things to consider

Where will the nonshyprofit operate Will there be a changing membershipWhat is nature of the activitiesHow will the organisation raise money

An overview of legal structures commonly used by nonshyprofit organisations is provided below

Unincorporated associations

Find out more

Is your organisation nonshyprofit

Find out more

Public ancillary fund model trust deed

Private ancillary fund model trust deed



An unincorporated association is not recognised as a separate legal entity to the members associated with it It isa group of people who agree to act together as an organisation and form an association The group can remaininformal and its members make their own rules on how the group is managed The rules may also be referred toas a constitution

Incorporated associations

An incorporated association is a legal entity separate from its individual members Associations are incorporatedunder the state or territory legislation in which they operate They are restricted to operating within that state orterritory

An incorporated association can continue regardless of changes to membership It also provides financialprotection by usually limiting personal liability to outstanding membership and subscription fees

As legislation varies from state to state you should visit the website of the relevant state or territory authority tolearn more about the requirements in your state or territory

Stateterritory Relevant authority Website

Australian CapitalTerritory

Office of RegulatoryServices

wwworsactgovau lthttpwwworsactgovaugt

New South Wales Office of Fair Trading wwwfairtradingnswgovaubusinessassociationshtmllthttpwwwfairtradingnswgovaubusinessassociationshtmlgt

Northern Territory Consumer andBusiness Affairs

wwwjusticentgovau lthttpwwwjusticentgovaugt

Queensland Office of Fair Trading wwwconsumerqldgovau lthttpwwwfairtradingqldgovaugt

South Australia Office of Consumer ampBusiness Affairs

wwwocbasagovau lthttpwwwocbasagovaugt

Tasmania Office of ConsumerAffairs amp Fair Trading

wwwconsumertasgovaulthttpwwwconsumertasgovaugt

Victoria Consumer Affairs wwwconsumervicgovau lthttpwwwconsumervicgovaugt

Western Australia Consumer andEmployment Protection

wwwdocepwagovau lthttpwwwdocepwagovaugt

Find out more



Company limited by guarantee

A company limited by guarantee is a public company incorporated under the Corporations Act 2001 It has aseparate legal entity separate from its members and can operate anywhere in Australia

A company limited by guarantee can continue regardless of changes to membership The liability of companymembers is limited to the amount the members undertake to contribute to the property of the company if it ceasesoperation

The Corporations Act 2001 is administered by the Australia Securities amp Investments Commission (ASIC)

Tax concessions - an overview

httpwwwatogovauNonshyprofitGettingshystartedshyforshynonshyprofitshyorganisationsTaxshyconcessionsshyshyshyanshyoverviewLast modified 08 Jan 2014QC 33596

There is a range of concessions available to nonshyprofit organisations Few of the concessions apply to allorganisations in the nonshyprofit sector They generally apply to particular types of nonshyprofit organisations

The table below provides a summary of tax concessions and the types of nonshyprofit organisations that can accessthem

The table groups nonshyprofit organisations as follows

registered charities shy including registered public benevolent institutions and registered health promotioncharitiesother nonshyprofit organisations

The table also refers you to more information about each concession

There are also concessions for

public and nonshyprofit hospitals and public ambulance servicesregistered religious institutions and GST concessions for charities gift deductible entities and governmentschoolsnonshyprofit companies and liveshyin residential care workers

Find out more

ASIC website shy wwwasicgovau lthttpwwwasicgovaugt

It is important to check the notes to the table as your organisation may need to meet certainrequirements before it can access a concession



TABLE Summary of tax concessions and types of nonshyprofit organisations

Tax concessions Types of nonshyprofit organisations

Registered publicbenevolent institutions

and

Registered health promotioncharities

Registeredcharities

Other nonshyprofitorganisations

Income tax exemption

1 1 Certain types only 2

FBT exemption (subject to cappingthreshold)

1

Certain types only 3

FBT rebate

8 Certain types only 4

GST concessions for charities and giftdeductible entities


GST concessions for nonshyprofitorganisations

Deductible gift recipients

6 Certain typesonly 6


Refunds of franking credits




Notes to table

1 The organisation must be endorsed by us to access this concession shy see Endorsement requirements2 Only certain types of nonshyprofit organisations are exempt from income tax Many nonshyprofit organisations

are taxable but may be entitled to special rules for calculating taxable income lodging income tax returnsand special rates of tax shy see Income tax

3 Public and nonshyprofit hospitals and public ambulance services are eligible for this concession shy see FBTexemption

4 Certain nonshygovernment nonshyprofit organisations are eligible for this concession shy see FBT rebate5 The organisation must be a deductible gift recipient to access this concession shy see Deductible gift

recipients lthttpwwwatogovauNonshyprofitGiftsshyandshyfundraisingInshydetailDeductibleshygiftshyrecipientGettingshystartedTheshyendorsementshyprocessshyforshydeductibleshygiftshyrecipients gt

6 The organisation must be endorsed by us as a deductible gift recipient to access this concession The onlyorganisations that do not need to be endorsed are those listed by name in tax law shy see Deductible giftrecipients lthttpwwwatogovauNonshyprofitGiftsshyandshyfundraisingInshydetailDeductibleshygiftshyrecipientGettingshystartedTheshyendorsementshyprocessshyforshydeductibleshygiftshyrecipients gt

7 The organisation must be an entity that is endorsed by us as exempt from income tax or a deductible giftrecipient to access this concession shy see Refunds of franking credits

8 The organisation must be endorsed by us to access this concession Not all registered charities are eligiblefor this concession shy see FBT rebate

Types of non-profit organisations

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Concessions are available depending on the type of nonshyprofit organisation Nonshyprofit organisation types fallwithin two broad categories

Find out more

FBT exemption

Religious institutions

GST concessions

Nonshyprofit companies and liveshyin residential carers



charities shy including public benevolent institutes (PBIs) and health promotion charities (HPCs) other nonshyprofit organisations

The following diagram shows the relationship between the types of nonshyprofit organisations shy note the diagramdoes not represent the relative size or population of each type

Types of nonshyprofit organisations

Other non-profit organisations

httpwwwatogovauNonshyprofitGettingshystartedshyforshynonshyprofitshyorganisationsTypesshyofshynonshyprofitshyorganisationsOthershynonshyprofitshyorganisationsLast modified 18 Feb 2014QC 33597

Other nonshyprofit organisations are nonshyprofit organisations that are not charities and include sports clubscommunity service groups and recreational clubs



We accept an organisation as nonshyprofit if its constitution or governing documents prevent it from distributingprofits or assets for the benefit of particular people shy both while it is operating and when it winds up

Find out more




Charities

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ACNC registration is a prerequisite for charities including PBIs and HPCs to access charity tax concessions

Registering your organisation

httpwwwatogovauNonshyprofitGettingshystartedshyforshynonshyprofitshyorganisationsRegisteringshyyourshyorganisationLast modified 13 May 2014QC 33590

To access various concessions and comply with your organisations tax obligations your organisation may needto register for an Australian business number (ABN) goods and services tax (GST) fringe benefits tax (FBT) payas you go (PAYG) withholding or other taxes

Charities including PBIs and HPCs need to be registered with the Australian Charities and NotshyforshyprofitsCommission (ACNC) to access charity tax concessions

In this section

What is an ABNWho is entitled to an ABNHow does your organisation apply for an ABNRegistering for GST and other taxesKeep your organisations registration details upshytoshydateCancelling your organisations registration

What is an ABN

httpwwwatogovauNonshyprofitGettingshystartedshyforshynonshyprofitshyorganisationsRegisteringshyyourshyorganisationWhatshyisshyanshyABNshyLast modified 08 Jan 2014QC 33601

Find out more

Is your organisation a charityIs your organisation a public benevolent institutionIs your organisation a health promotion charity



An ABN is a single identifier that nonshyprofit organisations use to

register for GST and claim GST creditsregister for PAYG withholdingdeal with investment bodiesapply to us for endorsement as a deductible gift recipient or tax concession charityinteract with other government departments agencies and authoritiesinteract with us on other taxes such as FBT

Your organisations ABN registration details become part of the Australian Business Register The publiclyavailable information on this register allows people to find out whether the entities they are dealing with

have an ABNare registered for GSTare endorsed charities andor are endorsed as deductible gift recipients

Who is entitled to an ABN

httpwwwatogovauNonshyprofitGettingshystartedshyforshynonshyprofitshyorganisationsRegisteringshyyourshyorganisationWhoshyisshyentitledshytoshyanshyABNshyLast modified 08 Jan 2014QC 33602

To be entitled to an ABN your organisation must be one or more of the following

a company registered under the Corporations Act 2001an entity carrying on an enterprise in Australiaan entity that in the course or furtherance of carrying on an enterprise makes supplies that are connectedwith Australiaa government entitya nonshyprofit subshyentity shy for GST purposesa superannuation fund

Entities can include charities nonshyprofit clubs societies and associations

An enterprise includes an activity or series of activities performed by either

a charitya gift deductible entity

Your organisation must have an ABN if it is seeking endorsement as one or both of the following

a tax concession charitya deductible gift recipient



How does your organisation apply for an ABN

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Registering for GST and other taxes

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Goods and services taxGoods and services tax (GST) is a broadshybased tax of 10 on the sale of most goods services and anything elseconsumed in Australia

Get it done

Apply

electronically through

the Australian Business Register at wwwabrgovau lthttpwwwabrgovaugtthe Australian Government business website wwwbusinessgovau lthttpwwwbusinessgovaugt whereyou can also manage other government obligations

on a paper form available by phoning us on 13 92 26 through a tax agent who will lodge an application using the electronic lodgment system

Find out more

Australian business number (ABN)ABN registration



GST is a tax on transactions Where a nonshyprofit organisation is registered (or required to be registered) for GSTthe price of most sales of goods and services and anything else will be inclusive of GST Similarly theorganisation may be entitled to claim GST credits on the purchases it makes in carrying out its activities

Fringe benefits taxFringe benefits tax (FBT) is a tax payable by employers who provide fringe benefits to their employees or toassociates of their employees This is the case whether or not the employer is the actual supplier of the benefit shyfor example where the benefit is provided by an associate or under an arrangement with a third party

If your organisation provides a fringe benefit to its employees or to associates of its employees (typically familymembers) your organisation may have an FBT liability This is separate from income tax and is calculated on thetaxable value of the fringe benefits provided Even if your organisation is exempt from income tax it may still haveto pay FBT However certain FBT concessions can reduce your organisations liability

Find out more

GST registrationPay as you go withholding (for withholding from payments to employees) and Withholding in businesstransactionsFringe benefits tax

Keep your organisations registration details up-to-date

httpwwwatogovauNonshyprofitGettingshystartedshyforshynonshyprofitshyorganisationsRegisteringshyyourshyorganisationKeepshyyourshyorganisationshysshyregistrationshydetailsshyupshytoshydateLast modified 28 Feb 2014QC 33592

Your organisations ABN details are recorded on the Australian Business Register and we use them in dealingswith your organisation The register includes information such as your organisations postal address and helps usidentify your authorised contact people It is important that the information we have is accurate and upshytoshydate

Get it done

Register for GST FBT or PAYG withholding select these options on the ABN application formIf your organisation has an ABN register for GST or other taxes (excluding FBT) on the form Add anew business accountApplication to register for fringe benefits tax



As many nonshyprofit organisations elect office bearers for an annual term their authorised contact people oftenchange from year to year You need to notify us of any changes to your organisations registration details Thishelps us to protect your organisations privacy and provide office bearers with access to the information they needto perform their duties

We suggest your organisation includes updating the register as an agenda item in its annual general meeting

Cancelling your organisations registration

httpwwwatogovauNonshyprofitGettingshystartedshyforshynonshyprofitshyorganisationsRegisteringshyyourshyorganisationCancellingshyyourshyorganisationshysshyregistrationLast modified 28 Feb 2014QC 33778

If your organisations circumstances change you may need to cancel its registration for one or more taxes

Find out more

How do you ensure we can speak to your organisations representative

Public officer

If your organisation is a company or unincorporated association carrying on business in Australia youneed to appoint a public officer

You also need a public officer if your organisation is deriving income in Australia from property shy forexample interest rent or dividends

The position of public officer must always be filled Under the law a change in public officer must benotified within 28 days of your organisation becoming aware of the change

Public officer





Find out more

phone 13 28 66visit our website at wwwatogovau

Endorsement requirements

httpwwwatogovauNonshyprofitGettingshystartedshyforshynonshyprofitshyorganisationsEndorsementshyrequirementsLast modified 08 Jan 2014QC 33782

Charities must be endorsed by us to be exempt from income tax

Charities also need to be endorsed if they want to access charity concessions under the goods and services(GST) and fringe benefits tax (FBT) laws

An organisations endorsement details are recorded on the Australian Business Register at abrbusinessgovaulthttpwwwabrbusinessgovaugt

The following information is publicly available on the register

the organisations entity type shy charity public benevolent institution or health promotion charitythe tax concessions the organisation has been endorsed to accessthe date of effect for each endorsement

In this section


Get it done

Use the Application to cancel registration to cancel your organisations registration for

ABNGSTluxury car taxwine equalisation taxpay as you go withholdingfuel tax credits



Tax-deductible gifts

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Being endorsed as a TCC does not entitle an organisation to receive taxshydeductible gifts

There is a separate endorsement process for organisations seeking deductible gift recipient (DGR) status

Applying for endorsement

httpwwwatogovauNonshyprofitGettingshystartedshyforshynonshyprofitshyorganisationsEndorsementshyrequirementsApplyingshyforshyendorsementLast modified 08 Jan 2014QC 33777

Before an organisation can apply for endorsement it must have an Australian business number (ABN) If yourorganisation is a charity you must also be registered with the ACNC to apply for endorsement to access charitytax concessions

Endorsement is different to registration

Find out more

The endorsement process for deductible gift recipients

If your organisation does not have an ABN see Australian business numberIf your organisation is a charity and is not registered with the ACNC visit acncgovaulthttpwwwacncgovaugtIf your organisation is registered with the ACNC apply directly to us to be endorsed to access charitytax concessions shy Application for endorsement as a tax concession charity

Find out more

Endorsement to access charity tax concessions



httpwwwatogovauNonshyprofitGettingshystartedshyforshynonshyprofitshyorganisationsEndorsementshyrequirementsEndorsementshyisshydifferentshytoshyregistrationLast modified 28 Feb 2014QC 33780

Endorsement provides an organisation with access to concessions For example an organisation that isendorsed to access income tax exemption is exempt from paying income tax removing the need to lodge incometax returns

If an organisation is registered for a tax it is generally a payer of that tax However endorsement to access taxconcessions can often reduce the amount payable For example a registered charity that is endorsed to accessthe FBT rebate is entitled to a rebate equal to 48 of the gross FBT payable (subject to capping thresholds)

There will be situations where an organisation is both endorsed and registered for a tax For example a GSTendorsed charity that exceeds the relevant registration turnover threshold must register for GST

To receive the practical benefit of some charity concessions a registered charity must be endorsed andregistered for a tax For example a charity that is endorsed to access GST charity concessions is entitled to GSTcredits when it reimburses a volunteer for expenses directly related to the volunteers activities for the charity Theendorsed charity must also be registered for GST to claim these credits

Income tax

httpwwwatogovauNonshyprofitGettingshystartedshyforshynonshyprofitshyorganisationsIncomeshytaxLast modified 08 Jan 2014QC 33591

Whether a nonshyprofit organisation has to pay income tax will depend on whether or not the organisation is exemptfrom income tax If your organisation is exempt from income tax it will not be assessed on its receipts and doesnot need to lodge an income tax return (unless specifically asked to)

Only certain categories of organisation are exempt from income tax They come from these broad groups

registered charitiescommunity service organisationscultural organisationseducational organisationsemployment organisationshealth organisationsresource development organisationsscientific organisationssporting organisations

How do you work out if your organisation is exempt

httpwwwatogovauNonshyprofitGettingshystartedshyforshynonshyprofitshyorganisationsIncomeshytaxHowshydoshyyoushyworkshyoutshyifshyyourshyorganisationshyisshyexemptshyLast modified 08 Jan 2014QC 33588



Organisations that are charities must be endorsed by the ATO to be exempt from income tax

Organisations that are not charities can selfshyassess their entitlement to income tax exemption

CharitiesThere is a system of endorsement under which charities must apply to us to be exempt from income tax

Charities that are endorsed to access income tax exemption are referred to as tax concession charities (TCCs)

If we notify a charity that it is endorsed as exempt from income tax all of the following apply

the charity does not need to lodge income tax returns unless specifically asked to do sothe charity will need to regularly review whether it is entitled to endorsementthe charity must tell us if it ceases to be entitled

Other non-profit organisationsOrganisations that are not charities can selfshyassess their entitlement to income tax exemption They do not needto be endorsed by us to be exempt from income tax Most have additional tests and rules that must be met beforethe organisation can be exempt

If you work out that your organisation meets all the requirements for income tax exemption all of the followingapplies

your organisation will not need to pay income tax capital gains tax or lodge income tax returns unlessspecifically asked to do soyou do not need to get confirmation of this exemption from usyou should carry out a yearly review to check if your organisation is still exempt shy you should also do thiswhen there are major changes to your organisations structure or activities

If your nonshyprofit organisation is not exempt from income tax it is taxable

Taxable organisations

httpwwwatogovauNonshyprofitGettingshystartedshyforshynonshyprofitshyorganisationsIncomeshytaxTaxableshyorganisations

Find out more

See our guide Endorsement to access charity tax concessions

Find out more

Income tax guide for nonshyprofit organisations



Last modified 28 Feb 2014QC 33593

Taxable nonshyprofit organisations are generally treated as companies for income tax purposes whether or not theyare incorporated

If your organisation is prohibited by the terms of its constituent documents from making any distributions shywhether in money property or otherwise shy to its members it is treated as a nonshyprofit company It will have thebenefit of special rules for calculating taxable income lodging income tax returns and special rates of income tax

If your organisation does not meet the nonshyprofit requirement it must lodge an income tax return each yearregardless of its taxable income It will have the same rates of tax applied as other taxable companies

Capital gains taxCapital gains tax (CGT) applies to nonshyprofit clubs societies and associations that are treated as companies forincome tax purposes in the same way as it does for other companies that pay income tax

CGT is the tax a person or organisation pays on any capital gain it makes and includes in its annual income taxreturn There is no separate tax on capital gains shy it is just a component of income tax An organisation is taxedon its net capital gain at the company tax rate

Some of the particular CGT issues that can affect nonshyprofit organisations include

the sale of assets used in carrying on its activitieschanges to the form of an organisations incorporationthe amalgamation of organisationsthe availability of CGT concessions such as the small business concessions

Find out more

Guide to capital gains tax

Pay as you go instalmentsPay as you go (PAYG) instalments is a system for paying amounts towards the expected tax liability on yourbusiness and investment income for the financial year

Each year after your organisation has lodged its annual tax return we work out what your organisations total taxliability is and credit its PAYG instalments against this amount We work out the actual tax liability when weassess your organisations annual income tax return Then we credit the PAYG instalments for the year againstyour organisations assessment to determine whether it owes more tax or whether it is owed a refund

Find out more

Mutuality and taxable income



If your organisation needs to pay PAYG instalments we will write to you and notify you of an instalment rate Wecalculate the instalment rate from information in your organisations latest income tax return

PAYG instalments are generally paid quarterly but some organisations choose to pay an annual instalment

Quarterly PAYG instalments are reported and paid on an activity statement or instalment notice Annualinstalments are reported and paid on an annual instalment notice

Most organisations also have a choice of using either the instalment amount we have worked out for them or anamount based on their instalment rate multiplied by their current business and investment income

If your organisation has to pay PAYG instalments we will tell you which options are available to you and ask youto choose the option you want to use

Goods and services tax

httpwwwatogovauNonshyprofitGettingshystartedshyforshynonshyprofitshyorganisationsGoodsshyandshyservicesshytaxLast modified 01 Jul 2014QC 33587

Goods and services tax (GST) is a broad based tax of 10 on the sale of most goods and services consumed inAustralia

Nonshyprofit organisations must register for GST if their GST turnover is $150000 or more and they may choose toregister if their GST annual turnover is lower

If your organisation is registered for GST your organisation must include 10 GST on most or all of its sales Inmost circumstances your organisation can also claim a credit for the GST included in the price of goods andservices it buys in carrying on its activities

Nonshyprofit organisations have access to a range of GST concessions Charities must be endorsed by the TaxOffice in order to access GST charity concessions

There are a number of different ways you can structure your organisation for GST purposes

If your organisation receives grants or sponsorships it may need to pay GST on the amount received

State and territory taxes

httpwwwatogovauNonshyprofitGettingshystartedshyforshynonshyprofitshyorganisationsStateshyandshyterritoryshytaxesLast modified 21 May 2014QC 33595

Find out more

GST registrationGST concessionsGST branches groups and nonshyprofit subshyentitiesGrants and sponsorship



Taxes and duties that may be levied by state and territory governments include

stamp duty (or duty in the Australian Capital Territory New South Wales Queensland Tasmania Victoriaand Western Australia)payroll taxland tax

As the requirements for these taxes and duties vary between states and territories organisations should seekclarification from their local stateterritory revenue office Enquiries about state and territory taxes should not bedirected to the ATO

Our commitment to you

We are committed to providing you with accurate consistent and clear information to help you understand your rights and entitlements andmeet your obligations

If you follow our information and it turns out to be incorrect or it is misleading and you make a mistake as a result we will take that intoaccount when determining what action if any we should take

Some of the information on this website applies to a specific financial year This is clearly marked Make sure you have the information for theright year before making decisions based on that information

If you feel that our information does not fully cover your circumstances or you are unsure how it applies to you contact us or seekprofessional advice

Copyright notice

copy Australian Taxation Office for the Commonwealth of Australia

Find out more

Stamp duty

Payroll tax

Land tax

Contact details

Fund raising requirements

States and territories also have their own laws regulating the fundraising activities of nonshyprofitorganisations

For more information about fundraising requirements see Stateterritory and local governmentregulations



You are free to copy adapt modify transmit and distribute this material as you wish (but not in any way that suggests the ATO or theCommonwealth endorses you or any of your services or products)



Nonshyprofit organisations operate in many areas of society They can include

church schoolschurchescommunity child care centrescultural societiesenvironmental protection societiesneighbourhood associationspublic museums and librariesscholarship fundsscientific societiesscoutssports clubssurf lifesaving clubstraditional service clubs



We accept an organisation as nonshyprofit where its constituent or governing documents prevent it from distributingprofits or assets for the benefit of particular people shy both while it is operating and when it winds up Thesedocuments should contain acceptable clauses showing the organisations nonshyprofit character The income taxlaw does not prescribe the words that a nonshyprofit organisation must have in its constituent documents Thefollowing example clauses would be acceptable provided that other clauses do not contradict them Theorganisations actions must be consistent with this requirement

Example clauses

Nonshyprofit clause

The assets and income of the organisation shall be applied solely in furtherance of its aboveshymentionedobjects and no portion shall be distributed directly or indirectly to the members of the organisation exceptas bona fide compensation for services rendered or expenses incurred on behalf of the organisation

Dissolution clause

In the event of the organisation being dissolved the amount that remains after such dissolution and thesatisfaction of all debts and liabilities shall be transferred to another organisation with similar purposeswhich is not carried on for the profit or gain of its individual members

A nonshyprofit organisation can still make a profit but this profit must be used to carry out its purposes andmust not be distributed to owners members or other private people










Things to consider




Find out more


Find out more

























Find out more
















Find out more








and


Registeredcharities





1


FBT rebate












Notes to table












Find out more

FBT exemption


GST concessions













Find out more




Charities







In this section


What is an ABN


Find out more
























Get it done

Apply




Find out more







Find out more





Get it done









Find out more


Public officer




Public officer





Find out more









In this section


Get it done













Find out more



Find out more









Income tax





















Find out more


Find out more












Find out more




Find out more



















Find out more












Copyright notice


Find out more

Stamp duty

Payroll tax

Land tax

Contact details
















Things to consider




Find out more


Find out more

























Find out more
















Find out more








and


Registeredcharities





1


FBT rebate












Notes to table












Find out more

FBT exemption


GST concessions













Find out more




Charities







In this section


What is an ABN


Find out more
























Get it done

Apply




Find out more







Find out more





Get it done









Find out more


Public officer




Public officer





Find out more









In this section


Get it done













Find out more



Find out more









Income tax





















Find out more


Find out more












Find out more




Find out more



















Find out more












Copyright notice


Find out more

Stamp duty

Payroll tax

Land tax

Contact details





























Find out more
















Find out more








and


Registeredcharities





1


FBT rebate












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FBT exemption


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Charities







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and


Registeredcharities





1


FBT rebate












Notes to table












Find out more

FBT exemption


GST concessions













Find out more




Charities







In this section


What is an ABN


Find out more
























Get it done

Apply




Find out more







Find out more





Get it done









Find out more


Public officer




Public officer





Find out more









In this section


Get it done













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Find out more









Income tax





















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Copyright notice


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Stamp duty

Payroll tax

Land tax

Contact details












and


Registeredcharities





1


FBT rebate












Notes to table












Find out more

FBT exemption


GST concessions













Find out more




Charities







In this section


What is an ABN


Find out more
























Get it done

Apply




Find out more







Find out more





Get it done









Find out more


Public officer




Public officer





Find out more









In this section


Get it done













Find out more



Find out more









Income tax





















Find out more


Find out more












Find out more




Find out more



















Find out more












Copyright notice


Find out more

Stamp duty

Payroll tax

Land tax

Contact details










Notes to table












Find out more

FBT exemption


GST concessions













Find out more




Charities







In this section


What is an ABN


Find out more
























Get it done

Apply




Find out more







Find out more





Get it done









Find out more


Public officer




Public officer





Find out more









In this section


Get it done













Find out more



Find out more









Income tax





















Find out more


Find out more












Find out more




Find out more



















Find out more












Copyright notice


Find out more

Stamp duty

Payroll tax

Land tax

Contact details


















Find out more




Charities







In this section


What is an ABN


Find out more
























Get it done

Apply




Find out more







Find out more





Get it done









Find out more


Public officer




Public officer





Find out more









In this section


Get it done













Find out more



Find out more









Income tax





















Find out more


Find out more












Find out more




Find out more



















Find out more












Copyright notice


Find out more

Stamp duty

Payroll tax

Land tax

Contact details









Charities







In this section


What is an ABN


Find out more
























Get it done

Apply




Find out more







Find out more





Get it done









Find out more


Public officer




Public officer





Find out more









In this section


Get it done













Find out more



Find out more









Income tax





















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Find out more












Find out more




Find out more



















Find out more












Copyright notice


Find out more

Stamp duty

Payroll tax

Land tax

Contact details





























Get it done

Apply




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Find out more





Get it done









Find out more


Public officer




Public officer





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In this section


Get it done













Find out more



Find out more









Income tax





















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Find out more



















Find out more












Copyright notice


Find out more

Stamp duty

Payroll tax

Land tax

Contact details














Get it done

Apply




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Get it done









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Public officer




Public officer





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In this section


Get it done













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Income tax





















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Copyright notice


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Stamp duty

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Get it done









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Public officer




Public officer





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In this section


Get it done













Find out more



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Income tax





















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Copyright notice


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Stamp duty

Payroll tax

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Public officer




Public officer





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In this section


Get it done













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Income tax





















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Copyright notice


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Stamp duty

Payroll tax

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In this section


Get it done













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Income tax





















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Copyright notice


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Stamp duty

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Income tax





















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Copyright notice


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Stamp duty

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Income tax





















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Copyright notice


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Stamp duty

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Copyright notice


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Copyright notice


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Copyright notice


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Stamp duty

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Copyright notice


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Stamp duty

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Documents

Getting started - POI Australia