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The Tax Office is extending the due date of governing documents by one year for self-assessing income tax-exempt not-for-profits.
ATO offers NFPs extension for governing documents
04 June 2025
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5 minute read
Self-assessing income tax-exempt not-for-profits (NFPs) have been given more time to update their governing documents by the ATO, in a move to provide additional support.
The ATO revealed it had extended the NFP due date to update governing documents from 30 June 2025 to 30 June 2026 for organisations that had not made any distributions of income or assets to members.
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“The NFP self-review return asks if your organisation has and follows clauses in its governing document that prohibit the distribution of income or assets to members while it is operating and winding up,” the ATO said.
In order for NFPs to obtain the extension, the ATO advised NFPs to answer ‘yes’ to the question in the return about their governing document.
The ATO said if the answer was ‘no’ to the question, the NFP would become taxable and the ATO would be in contact to confirm whether the NFP was eligible for income tax-exempt status.
Despite the due date having been extended by one year, it was still recommended for organisations to get their governing documents in order and updated as soon as possible.
“That way you can tick the task off your to-do list, avoid a last-minute rush, and provide assurance to your members and the community that your NFP is managing its affairs appropriately,” the ATO said.
“With many NFPs getting ready for their annual general meeting (AGM), now is a good time to get your governing documents in order.”
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