Taxable Organization
Some not-for profit (NFP) clubs, societies and associations are taxable organizations, that is, they are not exempt from income tax. Examples of taxable NFP organizations include social clubs, certain business and professional associations, clubs whose main purpose is only if hospitality services for members, and political parties.
If your NFP organization is taxable, it may have to lodge income tax returns and pay income tax.
To work out whether you require to lodge an income tax return and what rate of tax you pay, you first need to decide if your organization is a non-profit company or other taxable company. This division is important because non-profit companies have unusual arrangements for lodging tax returns and special rates of income tax.
If the organization’s element documents prohibit it from making any distributions, whether in money, property or else, to its members, the organization is treated as a non-profit company.
A non-profit company with taxable income of:
- $416 or less a year is not necessary to lodge an income tax return if an Australian resident (unless specifically requested to do so)
- More than $416 a year is required to lodge an income tax return for that year.
For more information on Etax, myTax ATO and online tax return, please contact us at 1300768284 or you can email us at enquiry@taxrefundonspot.com.au
