Income Tax Self Reporting For Stations Without Charity Registration
Changes to income tax self-reporting may impact your station if it's not registered as a charity. Stations without charity status must self-assess their tax obligations with the Australian Taxation Office, which can be complex and time-consuming. By registering as a charity with the Australian Charities and Not-for-profits Commission (ACNC), your station will simplify tax compliance. Now is the perfect time to explore the benefits of charity registration.
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Guides for Financial Management and Community Financial Officers
The main duties of a Financial Officer are to oversee the financial administration of the organisation, review procedures and financial reporting, and advise the Board on financial strategy and fundraising.
From keeping the books, to tracking cash, managing a budget and following policies and procedures, the Financial Officer is a vital member of a community radio station's board.
Resources to get your started:
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GST for Not-For-Profit Organisations
The below information outlines the requirements for not-for-profit organisations in regards to GST, applying for GST, and the benefits/concessions of doing so if you choose to voluntarily register (if your station earns less than $150,000 per annum).
Not-for-profit (NFP) organisations must register for goods and services tax (GST) if their GST turnover is $150,000 or more and can choose to register if their GST turnover is lower.
The ATO explains what GST is, how it works, how to register and when and when not to charge for GST - amongst other things!
The above information is from the NFP Law Hub and explains how to determine if your station needs to be registered for GST and how to go about it. It also explains GST concessions.
As of July 2017, less information is needed on your business activity statement (BAS). This means a simpler GST reporting method for all not-for-profit organisations with a GST turnover of less than $10 million. This means that you only need to report your:
- total sales
- GST on sales
- GST on purchases.
ATO - Simpler BAS GST Bookkeeping Guide
The Simpler BAS GST bookkeeping guide is designed to assist small business with the classification of sales and purchases for GST, and to help clarify the most common and confusing GST transactions.
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Cash Reserves: financial stability and sustainability
Community broadcasters can improve their financial stability and sustainability by working to create financial reserves. Having reserves is in line with good governance and proper risk management, and creates a safety net if one stream of a station's funding were to cease or alter severely.
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Financial Risk Management
Taking steps to minimise financial risk runs through every aspect of financial management – from planning, budgeting and daily financial operations to monitoring and evaluating the station’s financial management processes.
Risk management identifies what could go wrong and the financial impact this would have on the station’s operations, and then devising strategies to minimise the impact the risk would have if it materialised.
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Reporting Requirements per State
NFP Law set out the financial reporting obligations of incorporated associations in each state and territory, including:
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