Australian Taxation Office (ATO)

The ATO has recently refreshed its compliance and strategic plans and here is our pick of the highlights.

On the current ATO Watch list are:

  • Public and Private Ancillary Funds – annual scrutiny of finances and compliance with Guideline requirements.
  • Refund of Franking Credits – review of amounts claimed (doubled in the last 5 years).
  • Clubs – is the principle of mutuality being correctly applied.
  • Self-assessing entities such as sporting clubs – FBT benefits and GST registration.
  • Animal welfare and school building funds – watching for private benefit replacing mandated purposes of these organisations.
  • Deductible Gift Recipients – mission drift from mandated purposes that takes them outside the DGR criteria.
  • Terrorism Financing and Money Laundering – scrutiny of overseas activities and transactions continues to be a priority.
  • Closing Up Shop – making sure that any surplus assets go to the purposes mandated in the constitutional provisions for winding up.

Coming soon

  • The 2021 Budget announced that from 1 July 2023 those non-profits that self-assess their concessional status (community service organisation, sporting organisations and cultural organisations that are not charities) will be required to lodge an annual self-review return. This is in response to Recommendation 24 of the ACNC Legislative Review 2018.
  • Treasury Laws Amendment (2021 Measures No.2) Act 2021 requires all 47 of 49 general DGR categories to register with the ACNC as charities. The amendment comes into force on 14 December 2021, but there is a 12 month transitional period with scope to extend this to 3 years with ATO approval. This will affect less than 2,000 DGRs mainly being school building funds, cultural organisations, environmental organisations and necessitous persons funds.
  • Taxation Ruling TR2021/D6 – Income Tax the games and sports exemption is being proposed to replace the existing ruling in 2022.
  • GSTR 2012/2 Goods and Service Tax: financial assistance payments will be revised.
  • Public Ancillary Fund Guidelines are being reconsidered.
  • TR 95/27 Public Funds is being reviewed.
  • TR 2000/10 Public Libraries, Museums and Art Galleries is being reviewed to reflect contemporary operation of these institutions.

Article by:

Latest News


April 18, 2024

A housing trust’s modernisation requires Court approval

Background The Baxter Homes Trust (Trust), was a charitable trust established in Victoria by a deed executed in 1960. Its purpose was to provide aged inhabitants of Geelong Victoria or its neighbourhood with housing as administered by The Geelong and Western District Ladies Benevolent Association’ incorporated under the Hospitals and Charities Act 1890. The Trust A housing trust’s modernisation requires Court approval

Read Article

April 18, 2024

Draft Regulations for NPO Self-Review Assessment Return Released

We have previously written in bulletins about the forthcoming self-assessment tax review for non-profit profit organisations which have an Australian Business Number (ABN) but are not registered as charities with the ACNC – Be alert to being alarmed on viewing your club or society annual report this year and self-assessment by tax-exempt. The background is Draft Regulations for NPO Self-Review Assessment Return Released

Read Article

March 13, 2024

Last of the loopholes? Let’s hope so!

Background All Australian employers will be acutely aware that the Federal government has, since the last election, embarked on a fairly aggressive program of targeted changes to the nation’s industrial relations laws. So far, we’ve had changes aimed at supporting Australia’s jobs and economic recovery[1], gained more respect at work[2], we’ve secured our jobs and Last of the loopholes? Let’s hope so!

Read Article