Not-for-Profits given extension for ATO’s new rules

In a strategic move to support non-profit organisations (NPOs), the Tax Office has announced an extension of the initial October deadline to March 2025. This decision comes as a response to the sector’s feedback regarding the challenges faced in complying with the newly established regulations.

A Five-Month Lifeline for Compliance

The Tax Office’s extension grants NPOs a crucial five-month period to conduct mandatory self-reviews, ensuring their adherence to the rules that govern their tax-exempt status. This extension is a testament to the Tax Office’s commitment to providing a supportive environment for NPOs during this transition.

Empowering NPOs with Time and Resources

The revised deadline of 31 March 2025 for the 2023-24 financial year reflects the Tax Office’s understanding of the NPOs’ need for additional time to utilise Online services or the self-help phone service for lodging their returns.

A Focus on Education and Support

The Tax Office has emphasised its focus on education and support rather than enforcement during this new regime. This approach is particularly important for the charity sector, where the emphasis is on guiding organisations through the compliance process with clarity and assistance.

Proactive Communication and Support

The Tax Office will proactively communicate with non-charitable NPOs, informing them of the extended deadline and the availability of online resources to facilitate their self-review process. This automatic extension is part of the Tax Office’s transitional support arrangements, eliminating the need for NPOs to seek approval for the additional time.

For all your not-for-profit accounting needs, reach out to the Walker Wayland Advantage team.

 

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