News and Articles

Is your Not-for-profit now required to pay income tax?

The recent introduction of the requirement for Not-for-profits (NFPs) to lodge a self -review return with the ATO has led to many of them learning that they are not in fact eligible for income tax exemption but are taxable and liable to pay tax (and may have been for some time).

Read

PBI and FBT – ATO focus

The ATO is focussing on whether public benevolent institutions (PBIs) endorsed by the Commissioner of Taxation as eligible for an exemption from fringe benefits tax (FBT) are properly claiming the tax. Benefits provided to employees of the PBI are exempt from FBT (up to a capping threshold). Jennifer Moltisani of ATO says We are concerned […]

Read

Private Foundations the ATO is looking at you

The ATO is on the lookout for advisers who are telling clients that, by operating their business or income producing activities through a private foundation, they can 'opt out’ of the tax system. Jennifer Moltisani of ATO says: Unlike genuine NFP foundations, participants stream their untaxed employment, contractor, or business income through the sham foundation, […]

Read

Tax exemption for sports clubs

A sports club may be entitled to claim income tax exemption on the basis that it is an association with the main purpose of encouraging sport or a game. To qualify, a club must: have the main purpose of the encouragement of a game or sport; be a not-for-profit; and meet other special conditions. What […]

Read