Tax Facts for Clubs & Associations
26 August 2002 at 1:08 pm
Not all Not for Profit organisations are exempt from income tax. Organisations that are not exempt need to know about taxable income as it determines whether they need to lodge tax returns and pay income tax.
The Australian Tax Office is offering information to help clubs, societies and associations calculate their taxable income.
A new Fact Sheet is now available and also includes the concessional treatment of amounts received from members.
The taxable income of a Not for Profit organisation is calculated as the difference between its assessable income and its allowable deductions, that is:
Taxable income =Assessable income –Allowable deductions
A Not for Profit organisation’s taxable income may also be affected by: mutual dealings with its members, and goods and services tax (GST), if the organisation is registered or required to be registered for GST.
Many amounts received by a Not for Profit organisation will be assessable income. The Fact Sheets explains how and offers simple examples and calculation tools.
If you would like a copy of the Tax Office Fact Sheet in PDF format just send us an e-mail to firstname.lastname@example.org.
The ATO has also introduced a fax-back information service especially for Not for Profits.
A Fax from Tax allows users to access tax information 24 hours a day, seven days a week. This service has been expanded to include a new section specifically for community organisations.
A Fax from Tax is an automatic fax back system to obtain tax specific documents. This channel provides organisations with an alternative means of gathering information and is particularly valuable for those without access to the Internet.
By simply calling the A Fax from Tax line on 13 28 60 and following the prompts, Not for Profit organisations have specific tax information at their fingertips.
You can request information on Australian business numbers, deductible gifts and fundraising, fringe benefits tax, goods and services tax, income tax (including exemptions), pay as you go, record keeping, refunding imputation credits, superannuation guarantee and articles from the Non-Profit News Service.
To find out which documents are available from our A Fax from Tax service you should obtain a copy of the Non-Profit Organisations Directory – call 13 28 60 and follow the prompts. To request a copy of one of the documents listed in the directory, use your telephone keypad to enter the index number.