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.  

Charity Registration Flowchart for Non-registered Community Broadcasters

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:

  • Ensuring you legal structure in your constitution is consistent with your ABN 

  • Checking your organisations name and legal structure in your constitution is consistent with the applicable one of the following: 

    • State/Territory Regulator (Cooperative, and Incorporated Associations),  

    • ASIC (Companies limited by Guarantee) or  

    • ORIC (Aboriginal and Torres Strait Islander Corporations)    

  •  Details of all board/committee members including 

    • Name 

    • Date of Birth 

    • Contact details, including address, phone and email 

    • Position within the organisation, including date of commencement 

 

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:   

  • States the organisations legal name 

  • Includes a statement of its purposes, objects or aims that are consistent with their charitable purpose 

  • 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

  • Includes a winding up clause that states any surplus assets are distributed to one or more charities  

    • with charitable purpose(s) similar to, or inclusive of, the object(s) in clause [insert], and

    • which also prohibit the distribution of any profits and surplus assets to its members 

  • 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]

Step 3: Complete the CBAA’s Online Survey 

To participate in the CBAA’s streamlined ACNC application, complete the survey online.
The draft questions are available for reference here.

 

Additional Resources

Weekly help sessions resume from Tuesday 7th January at 2pm AEDT, open to anyone needing assistance with the process.

Join Zoom Meeting
https://cbaa-org-au.zoom.us/j/82028242395

Meeting ID: 820 2824 2395

Can't make it? No problem! 

Contact Megan directly on [email protected] or or calling 02 9318 9625.

Paperwork

Register as a Charity

Fill out this survey to join CBAA's bulk application for stations seeking to become charities.

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FAQs

Find out more about the need for and the process for becoming a charity.

Frequently Asked Questions