The Australian Taxation Office (ATO) has granted self-assessing income tax-exempt not-for-profits (NFPs) an additional year to update their governing documents.
The ATO announced that for NFPs that have not distributed income or assets to members, the due date for updating their governing documents is now 30 June 2026.
This extension moves the previous deadline from 30 June 2025, aiming to provide extra support to these organisations.
To benefit from this extension, NFPs must answer ‘Yes’ to the relevant question in their tax return concerning the status of their governing documents.
If an NFP answers ‘No’ to this question, it will become taxable, and the ATO will reach out to confirm the organisation’s eligibility for income tax-exempt status.
Despite the extended deadline, the ATO advised NFPs to not delay the update process.
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By GlobalData“That way you can tick the task off your to-do list, avoid a last-minute rush, and provide assurance to your members and the community that your NFP is managing its affairs appropriately,” the ATO said.
The tax office also highlighted the timeliness of this extension, with many NFPs preparing for their annual general meetings (AGMs).
“Now is a good time to get your governing documents in order,” the ATO suggested, encouraging organisations to take proactive steps towards compliance.
In May 2025, the ATO identified several common errors in capital gains tax (CGT) reporting following its engagements with the Next 5,000 a group comprising privately owned and wealthy entities.
Its recent engagements have uncovered a variety of mistakes, including incorrect cost base calculations, misreporting of transaction years or not reporting them at all.
