The extension applies to NFPs that have not distributed income or assets to members while it is operating and winding up.
The Australian Taxation Office (ATO) announced on 2 June 2025, a 12-month extension for self-assessing income tax exempt not-for-profit (NFPs) to update their governing documents for income tax exemption purposes by 30 June 2026.
This extension applies to NFPs that have not distributed income or assets to members while it is operating and winding up.
The NFP self-review return requires confirmation that governing documents include clauses prohibiting income or asset distribution to members.
Governing documents formally define the organisation’s purpose, NFP character, and the rules for its governance, operation, and decision-making. They may also be known as rules or articles of association, constitutions, rule books, or deeds of trust.
NFP organisations seeking access to tax concessions, either by ATO endorsement or self-assessment, must have appropriate clauses in governing documents to reflect their NFP character.
