Annual Not For Profit Self-Review Returns

Ensuring Tax Exemption Compliance for Sporting Clubs and Associations

Not-for-profits (‘NFPs’), including sporting clubs, societies and associations with an active ABN, need to lodge an annual NFP self-review return to continue accessing their income tax exemption.

The main purpose of a sporting organisation must be the encouragement of a game, sport or animal racing.  Any other purpose of the organisation must be incidental, ancillary or secondary.

The organisation’s governing documents will help identify the purpose for which it was set up, and the organisation’s activities in the year of income must then demonstrate that the main purpose is the encouragement of its game, sport or animal racing.

NFP organisations need to lodge their first NFP self-review return for the 2024 income year between 1 July and 31 October 2024.

NFP organisations with their own ABN need to complete their own NFP self-review return even if they are affiliated with a broader sporting group.

If an NFP organisation does not lodge the return, they may become ineligible for an income tax exemption and penalties may apply.

If you need more information about this recent development, please contact our office in West Perth on 08 9380 3555.