07 Mar ATO “busts” Not For Profit 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.