As previously advised the Australian Tax Office (ATO) has implemented new reporting requirements for not-for-profit organisations that are charities. The changes took effect from 1 July 2023.
Sheds Registered with the ACNC
As most sheds are regarded as charities they should be registered with Australian Charities and Not for Profit Commission (ACNC) – see Applying for charity registration | ACNC, to receive an income tax exemption.
Sheds with this exemption only need to complete an annual information statement with the ACNC – the Annual Information Statement | ACNC
This statement should be submitted to the ACNC within six months after the end of the financial year. Contact information for enquiries to the ACNC can be found on their website here: Contact ACNC | ACNC.
Sheds Not Registered with the ACNC
Sheds that are not registered with the ACNC are generally required to lodge a company tax return with the ATO. These sheds need to calculate their taxable income. Basically, taxable income is defined as assessable income less allowable deductions. Assessable income does not include membership fees or donations received.
Sheds with a taxable income exceeding $416 in one income year are required to lodge an income tax return. We recommend sheds that intend to lodge an Income Tax Return seek professional accounting advice.
Sheds with a taxable income less than $416 in one income year may submit a non-lodgement advice in lieu of a tax return. A non-lodgement advice is submitted as follows (this information was copied directly from correspondence with the ATO);
A taxable not-for-profit (NFP) company can notify of a non-lodgement advice, also known as a return not necessary, if they are not required to lodge an income tax return. For further information on taxable NFPs please go to ato.gov.au/taxableNFPs
An NFP company can notify the ATO of a non-lodgement advice for an income year by one of three methods. To make the request you need to be listed as an authorised contact on ATO records to act on behalf of the organisation. If you need to update your authorised contacts go to ato.gov.au/NFPnotifyofchanges for more information on how to update ABN registration details.
1) Phone
Call our Lodge and Pay enquiry line. Due to privacy reasons you will need to be an authorised contact already listed on ATO records, to confirm your identity and authorisation to access the account.
2) Written request
Write us a letter that includes the following details:
- Title at the top of the letter: NFP non-lodgement advice
- Organisation’s ABN
- Name of organisation
- Organisation’s postal address
- Income year for the non-lodgement advice to apply to. For example, 2023-24 income year.
- Reason for requesting the non-lodgement advice. For example, My organisation is a NFP Company with less than $416 of taxable income and is not required to lodge an income tax return.
- First and last name of an authorised contact listed on ATO records, to act on behalf of the organisation.
- Phone number for authorised contact
- Signature of authorised contact
- Date of signing
Post your completed NFP non-lodgement advice letter to:
Australian Taxation Office, PO Box 327, ALBURY NSW 2640.
3) Registered tax agent
A registered tax agent can submit the non-lodgement advice on your behalf, using Online services for agents.