New Annual Not-For Profit (NFP) Self-Review Reporting Obligations

Are you involved in a local NFP group or association? You may not be aware that there is a new annual reporting requirement to notify the ATO of the organisation’s income tax exempt eligibility.

From 1 July 2023, non-charitable NFP organisations with an active Australian Business Number (ABN) that self-assess as income tax exempt are required to lodge an annual self-review return with the Australian Tax Office (ATO). Until now, NFP organisations that self-assess had not been required to report annually to the ATO.

The following 8 categories are income tax exempt entities that can self-assess their eligibility for income tax exemption:

Community Service Organisations
Sporting Organisations
Cultural Organisations
Educational Organisations
Health Organisations
Employment Organisations
Resource Development Organisations
Scientific Organisations

If you are involved with a NFP association you may have received a notice from the ATO alerting you of this new requirement however if you have any questions or require assistance with completing the form, we are here to assist you.

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RECOVERING FROM A NATURAL DISASTER: WHAT YOU NEED TO KNOW ABOUT TAX

By Cogger Gurry • February 13, 2025

Scams via email and SMS are on the rise, and what’s more concerning is how convincing they’ve become. In our industry, many of these scams come in the form of messages purporting to be the ATO and seeking additional information from you as a taxpayer. Here are key things to remember if you receive a suspicious email or SMS: Watch out for messages with links that prompt you to log in to government services like myGov/myID. The ATO has recently stopped including hyperlinks in unsolicited SMS messages. So, if you receive a message claiming to be from the ATO but it contains a link, it’s almost certainly a scam. Always access ATO services directly by typing the web address yourself: ato.gov.au or my.gov.au, or via the ATO app. Be cautious of emails asking for personal or financial information , especially if they claim to be urgent. The ATO will never request sensitive information such as passwords, account numbers, or personal details via email, SMS, or unsolicited phone calls. Be wary of downloading attachments or clicking on links in emails, as they may contain malware that can steal your personal information. If you’re ever in doubt, contact our office on 03 5571 0111. As your tax agent, we can verify whether any communication you’ve received from the ATO is legitimate and advise you if you think your security has been compromised.

Stay Alert: How to Spot and Avoid ATO Scams

By Cogger Gurry • December 13, 2024

Scams via email and SMS are on the rise, and what’s more concerning is how convincing they’ve become. In our industry, many of these scams come in the form of messages purporting to be the ATO and seeking additional information from you as a taxpayer. Here are key things to remember if you receive a suspicious email or SMS: Watch out for messages with links that prompt you to log in to government services like myGov/myID. The ATO has recently stopped including hyperlinks in unsolicited SMS messages. So, if you receive a message claiming to be from the ATO but it contains a link, it’s almost certainly a scam. Always access ATO services directly by typing the web address yourself: ato.gov.au or my.gov.au, or via the ATO app. Be cautious of emails asking for personal or financial information , especially if they claim to be urgent. The ATO will never request sensitive information such as passwords, account numbers, or personal details via email, SMS, or unsolicited phone calls. Be wary of downloading attachments or clicking on links in emails, as they may contain malware that can steal your personal information. If you’re ever in doubt, contact our office on 03 5571 0111. As your tax agent, we can verify whether any communication you’ve received from the ATO is legitimate and advise you if you think your security has been compromised.

Proposed changes to HELP loans could mean lower repayments in 2025

By Cogger Gurry • December 11, 2024

If you're one of the millions of Australians with a Higher Education Loan Program (HELP) debt, you might be wondering how the government's proposed changes to HELP loans could affect you. While these changes are subject to the passage of legislation, they are proposed to take effect by 1 June 2025. One of the most significant aspects of the proposed changes is a one-off 20% reduction in all HELP debts. This reduction would be automatically applied by the ATO before the annual indexation on 1 June 2025. For example, if you have a HELP balance of $27,600, you could expect a reduction of approximately $5,520 in your debt. From 1 July 2025, the minimum income threshold for making compulsory HELP repayments is proposed to increase from $54,435 to $67,000. This means you’ll only start repaying your HELP debt once your income exceeds $67,000. The new repayments will be calculated only on the income above this threshold, but the rates will be higher compared to the current system. Here are the proposed new marginal repayment rates: income below $67,000: no repayment required. income between $67,001 and $124,999: 15 cents for each dollar over $67,000 income above $125,000: $8,700, plus 17 cents for each dollar over $125,000. Another crucial change is the proposed capping of the HELP indexation rate. Once the legislation is passed, the indexation rate will be set at the lower of either the consumer price index (CPI) or the wage price index (WPI). This adjustment will be backdated on all existing HELP, VET student loans, and other similar accounts from 1 June 2023. As a result, if your HELP balance was indexed based on the CPI in 2023 and 2024, the ATO will adjust your account to reflect the lower indexation, potentially providing a refund if your balance falls below zero. If you would like more information on this topic, please contact our office on 03 5571 0111.