Deakin Uni’s online tool helps not-for-profits claim tax exemption

Over 150,000 non-charitable, not-for-profit groups will have to lodge a new return this year to be eligible for tax exempt status, and this tool can help.

Deakin University’s online tool will help not-for-profit groups meet new rules to gain or retain their tax exempt status.

Not-for-profit community groups will be better prepared to meet new tax office requirements to be eligible for tax exempt status, thanks to an online tool developed at Deakin University.

From July this year over 150,000 non-charitable not-for-profit organisations will have to lodge an annual self-review return to the Australian Taxation Office in order to be eligible for income tax exemption.

The tool, created in partnership with the Australian Neighbourhood Houses and Centres Association, takes community groups through the steps they need to take to comply with the new system.

Groups have to ensure that their constitutions or rules are up to date, that their statement of purpose is compliant, and their policies fulfil relevant obligations. They may find that their best course of action is to register as a charity, but that isn’t known until they analyse their situation.

Jenni Lightowlers, Deakin’s executive dean of the Faculty of Business and Law, said that thousands of community groups were grappling with the changes.

“Their tax-exempt status, and ultimately their future, is under threat if they don’t get this right,” she said.

“We want to empower them to develop a strong and sustainable path forward in a way that feels manageable.”

Deakin’s work on the issue began when Australian Neighbourhood Houses and Centres Association chief operating officer Cameron MacRae – who is currently studying for a juris doctor at Deakin Law School – approached the university after realising that the new requirements had major, and possibly, disastrous implications for his association’s more than 1000 member groups of neighbourhood houses and community centres, as well as other not-for-profits around Australia.

“Most of our members have written up their founding documents decades ago and haven’t revisited them since. Almost all the documents we review do not meet the requirements set out under the new obligations, so it’s critical we act fast,” Mr MacRae said.

Deakin University has recognised a similar online tool will be useful to other bodies affected by the change and is talking to other groups about their needs.