This provides general guidance only – always seek professional advice tailored to your organisation's circumstances to ensure compliance with all legal and tax requirements.
New ATO Self-Reporting Requirements for Not-for-Profit Organisations
The ATO has introduced new reporting requirements for NFPs that self-assess as income tax exempt (i.e. not registered charities with the ACNC).
To qualify, organisations must:
- Be not-for-profit with an ABN.
- Operate solely for charitable purposes that benefit the public.
- Meet governance standards and apply income/assets solely for stated purposes.
- Pass one of the following tests: operate principally in Australia, hold DGR status, or be prescribed by law.
Annual requirements:
- Complete an annual self-review.
- Report to the ATO to confirm ongoing eligibility.
More information: Australian Taxation Office (ATO) | NFP Law
ACNC Registration
Organisations choosing to register as charities can access support and guidance on the registration process.
More information: Australian Charities and Not-for-profits Commission (ACNC)
NSW Fair Trading – Form A12 (Annual Reporting)
Tier 2 Associations (small) must lodge Form A12 within one month of their AGM.
For Tier 2 from 27 June 2025, thresholds increased
- Revenue: $500,000 (was $250,000)
- Current assets: $1 million (was $500,000)
Reclassification may reduce audit costs and lodgement fees for some associations. For more information: NSW Fair Trading
Stamp Duty Exemptions
NFPs may apply for exemption from stamp duty on certain transactions.
More information: Revenue NSW
Income Tax Assessment
- Ordinary income – day-to-day earnings (gate takings, stall fees, sales).
- Statutory income – other income (dividends, capital gains).
- If applied solely for NFP purposes, income is tax exempt.
Scenarios for Agricultural Societies:
- Scenario 1 – ACNC-registered charity running a show with tax exemption approved.
- Scenario 2 – Self-assessed NFP running a show, reporting annually, still exempt.
- Scenario 3 – Organisation breaches conditions (e.g. political donations) and loses tax-exempt status.
More information: ATO