How to Navigate New Reporting Requirements for NFPs
Posted 24 Feb
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Posted 24 Feb
For Not-for-Profit (NFP) entities, understanding and adhering to new requirements can be a daunting task, especially with the ever-evolving regulatory landscape.
The latest changes, introduced from 1 July 2023, add another layer of responsibility for NFPs, requiring meticulous preparation and a clear understanding of compliance protocols. From ensuring accurate record-keeping to meeting strict deadlines, navigating these changes can seem overwhelming without expert guidance.
Accountants play a vital role in helping NFPs stay ahead by offering tailored advice, simplifying the process, and ensuring compliance at every step. With the right support, your organisation can avoid costly mistakes and maintain focus on what matters most, your organisation's mission.
Let’s explore the latest reporting obligations for self-assessing exempt entities and how experienced accountants can help you navigate these changes seamlessly.
From 1 July 2023, significant changes have been introduced for non-charity Not-for-Profit entities with active Australian Business Numbers (ABNs). Under the new regulations, these entities must now lodge an annual self-review return.
This requirement applies to various types of NFPs, including:
- Incorporated associations
- Unincorporated associations
- Companies limited by guarantee
To lodge the self-review return, entities can use the ATO online services or a tax agent, such as Empire Accountants.
The first return must be submitted for the 2023–24 income year. Although the initial deadline is 31 March 2025, early preparation is key to avoiding complications.
Failure to lodge the required annual self-review return can lead to:
- Administrative penalties imposed by the Australian Taxation Office (ATO)
- Potential disruption to the organisation’s ability to deliver essential programs and services
To mitigate these risks, it’s essential for NFPs to maintain:
- Accurate and up-to-date records throughout the year
- Strong internal controls to ensure compliance with reporting requirements
Navigating these regulatory changes can be challenging, especially for organisations with limited financial expertise. That’s where Empire Accountants can help. With extensive experience in supporting NFPs across Brisbane, we understand the unique challenges you face and provide tailored advice to ensure your organisation remains compliant.
- Conduct a thorough review of your organisation’s tax status
- Assist with lodging the self-review return through ATO online services
- Provide guidance on maintaining accurate records and internal controls
- Minimise the risk of penalties
Don’t let the complexities of tax compliance overwhelm your organisation. By working with Empire Accountants you can ensure your NFP is prepared for these changes while focusing on your mission.
Reach out to Empire Accountants to discuss your specific needs and how we can assist you in meeting the new NFP reporting requirements. Our team is ready to guide you through the self-review process, helping your organisation thrive while staying compliant.
Call us today or book a consultation online to get started!
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