Are you exempt from income tax?
The Federal Government has released a new version of its Income Tax Guide for Non-Profit Organisations so that not-for-profit organisations can assess if they are exempt from income tax.
The guide is updated from the 2007 version and takes into account the forthcoming changes to be implemented by Australian Charities and Not-for-Profits Commission.
It includes detailed information about which organisations can self-determine their income tax status, including steps to follow to work out whether an organisation is exempt from income tax. The entitlements and responsibilities of being income tax exempt are also discussed.
The new version of the guide does not discuss the requirements for organisations that must be endorsed to access income tax exemption, such as charities.
In addition, the Federal Government has released a new worksheet to help organisations self-review their income tax status, which it recommends be done on an annual basis as well as when there is a major change to structure or operations.