Changes To Income Tax Self Reporting For Stations Without Charity Registration
The Australian Taxation Office (ATO) has recently made changes to the way not for profit organizations are able to self-assess for an income tax exemption.
Starting for the financial year 2023/24, The ATO has introduced a simple self-reporting tool for not-for-profits to be able to access an income tax exemption. However, using this tool, organisations whose objects align with a “charitable purpose” are unable to self-report.
Community radio stations fall under this category.
Essentially, under the ATO’s new self-reporting tool, community radio stations must register with the Australian Charities and Not-for Profits Commission (ACNC) to qualify for an income tax exemption.
If they choose not to, they must complete a tax return starting from the financial year 2023/24 if annual income has exceeded $416.
The ACNC has advised that all community broadcasters have charitable purposes, the CBAA is liaising with the ACNC to streamline the process of charity registration so that all community stations can continue to access an income tax exemption.
Step 1: Collate Information
To register with the ACNC you will need to compile your documents (constitution, certificate of registration with your state regulator, ASIC, or ORIC) and ensure your details are correct across all documentation this includes:
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Checking your ABN is current and correct at https://abr.business.gov.au/
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Ensuring you legal structure in your constitution is consistent with your ABN
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Checking your organisations name and legal structure in your constitution is consistent with the applicable one of the following:
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State/Territory Regulator (Cooperative, and Incorporated Associations),
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ASIC (Companies limited by Guarantee) or
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ORIC (Aboriginal and Torres Strait Islander Corporations)
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Details of all board/committee members including
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Name
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Date of Birth
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Contact details, including address, phone and email
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Position within the organisation, including date of commencement
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- And checked the suitability of each Responsible Person by reviewing the Australian Securities and Investments Commission (ASIC) register of banned or disqualified persons.
Step 2: Ensure Your Governing Document Complies with ACNC Requirements
Ongoing registration with the ACNC requires organisations to meet their governance standards. It’s recommended that all board/committee members familiarise themselves with these standards.
In addition, all stations joining the bulk submission must ensure their constitution:
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States the organisations legal name
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Includes a statement of its purposes, objects or aims that are consistent with their charitable purpose
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Includes a suitable not-for-profit or income and property clause that specifies income and property will be applied solely towards the purposes of the organisation
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Includes a winding up clause that states any surplus assets are distributed to one or more charities
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with charitable purpose(s) similar to, or inclusive of, the object(s) in clause [insert], and
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which also prohibit the distribution of any profits and surplus assets to its members
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States rules and processes that outline how the organisation makes decisions and how it is governed.
The CBAA has sought model objects and winding up clauses for all types of organizations seeking charity status, with additional clauses for stations that wish to seek DGR status following their charity registration.
For help interpreting these statements and which apply to your station please email [email protected]
CBAA - Notice of General Meeting.docx- CBAA bulk ACNC application - Table of draft clauses for radio station constitutions.docx
Step 3: Complete the CBAA’s Online Survey
here.
Additional Resources
CBAA is hosting weekly zoom drop in sessions on Tuesdays at 2pm AEST.
Join Zoom Meeting
https://cbaa-org-au.zoom.us/j/82028242395
Meeting ID: 820 2824 2395