Not-For-Profit organisations in Australia must adhere to tax laws to maintain their tax-exempt status. Starting from 2023-24 income year, Not-For-Profit organisations must lodge a Not-For-Profit Self-Review Return (NFP SRR), designed to assess adherence to tax regulations.
Understanding the NFP SRR
The NFP SRR requires not-for-profits to evaluate their compliance with tax laws, ensuring alignment with legal requirements. The NFP SRR is not required to be lodged for certain not-for-profit organisations, these include:
- ACNC entities
- Taxable NFP
- NFP sub entity for GST purposes
- Certain government entities
Importance of Compliance
Compliance with reporting requirements is not only a legal obligation but also essential for maintaining the trust and confidence of stakeholders, including donors, beneficiaries, and regulatory authorities. Not-For-Profits rely on public support to fund their activities, and transparent reporting is crucial for demonstrating the impact of their work and ensuring accountability for the use of resources.
Please contact our office if you have any questions about the requirements of your not-for-profit going forward. Preparing an NFP SRR is essential for nonprofit compliance. By conducting a thorough self-review and addressing any compliance gaps, not-for-profits can strengthen governance, financial management, and overall compliance practices, maintaining public trust and fulfilling their mission.
