Extended deadline to lodge your not-for-profit self-review return. Lodge by 31 March 2025
As members are aware, in order for your entity to retain its not-for profit (NFP) status, you are required to lodge a NFP self-review return with the ATO. Please be advised that the deadline for lodgement has been extended to 31 March 2025. Lodgements can be submitted anytime between now and this deadline.
A refresher on the requirements of completing this process are below. Tennis NSW encourages members to lodge as soon as possible.
Background
In May 2021, the Australian Government announced changes to the administration requirements for NFP entities. NFPs that satisfy certain conditions must lodge an annual NFP self-review return.
The first year for which applicable organisations are required to lodge an annual NFP self-review return is for the year ending 30 June 2024 (due date is now 31 March 2025). If an applicable NFP fails to submit their NFP self-review return they may become ineligible for an income tax exemption and penalties may apply.
Note that not-for-profit entities that are governed by the Australian Charities and Not-for-Profits Commission (ACNC) will not be required to lodge an annual return. Further, those entities without an active Australian business number (ABN) will also not be required to lodge.
How to lodge
NFP self-review returns are required to be lodged via the Australian Taxation Office online portal. In order to access, entities will need to set up their myGovID and Relationship Authorisation Manager (RAM).
The myGovID app is the secure way to identify individuals when accessing a range of government online services for business matters.
Steps in obtaining a myGovID:
- Download the myGovID app from official app stores.
- Enter your details via the app (full name, date of birth and email address). It is recommended that you use a personal email for future transferability.
- Complete the identification process. Most online services will require “standard” identity strength, which will require verification with at least two Australian identity documents (passport, license, etc).
For further guidance on obtaining your myGovID see the ATO Guidance.
Relationship Authorisation Manager is an authorisation service that allows you to access government online services on behalf of a business. A principal authority needs to be the first link to the business in RAM. A principal authority includes those listed on the entity’s Australian Business register (ABR) eg Director or Public Officer. Once linked, others can be authorised to act on behalf of the business.
For further guidance on accessing and linking RAMs see the ATO Guidance.
If you have difficulty lodging the annual NFP self-review return through the ATO online services, there is also the option to lodge the return via phone by calling the ATO’s NFP self-help service on 13 72 26. However, please be advised that this option will only be made available for lodgement of 2023-24 returns, and therefore, it is strongly recommended that you familiarise yourself with the ATO online services. To lodge via the phone service you should first review the list of self-review return questions here and record responses to each question and have these with you when you call.
More information on how to lodge your return is available via the ATO website here.
Information Required
The online return will require entities to provide answers to the following questions.
| 1. What was the estimated annual gross revenue for the organisation? | Entities are required to provide an estimate of their annual turnover within pre-defined ranges (small $0 – $150,000, medium $150,000 – $3,000,000, and large over $3,000,000). |
| 2. Which category that best reflects the main purpose of the organisation? | Included within the options is the purpose of “sporting”, defined as, “a society, association or club whose main purpose is encouraging a game, sport or animal racing.” |
| 3. Does the organisation have and follow clauses in its governing documents that prohibit the distribution of income or assets to members while it is operating and winding up? | Governing documents include rules or articles of association or constitution. These documents should identify the organisation’s purpose, how it is governed and how it makes decisions. In order to be considered a not-for-profit entity and qualify for an income tax exemption, these documents should include clauses stating that profits and assets won’t be distributed for the benefit of members (both while it is operating and when it winds up). If your governing documents do not contain these clauses it is recommended that these are reviewed and updated. For more information, including example clauses to be included within your governing documents, see the ATO here. |
| 4. Does the organisation exist, operate and incur its expenditure entirely in Australia? | Note that if you answer no, there will be follow up questions about the level of operations and expenditure in Australia. |
| 5. Does the organisation have any charitable purposes? | Sport is not specifically identified as a charitable purpose. To check whether your organisation is eligible to be registered as a charity, see the ACNC website here. |
When to lodge
The 2023–24 NFP self-review return must be lodged between now and 31 March 2025. Further returns are then required to be lodged each subsequent income year.
NFPs do not need to lodge an NFP self-review return for any income years prior to 2023–24.
The first NFP self-review return for the 2023–24 income year is now available via the ATO online services.
Further information
For further guidance as provided by the ATO see here.
If you require further assistance or guidance, Tennis NSW encourages you to seek independent legal advice.
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