Taxation

Incorporated associations are subject to taxation but may be eligible for certain concessions.  This chapter provides a basic overview of taxation obligations and concessions. 

Important

Taxation issues can be complex and it is important to seek expert advice when dealing with these matters. For detailed information on not-for-profit taxation visit the Australian Taxation Office (ATO) website at www.ato.gov.au/nonprofit  or telephone 1300 130 248.

Key points

  • Incorporated associations are subject to taxation unless a relevant tax exemption applies.
  • Some associations may be eligible for taxation concessions.
  • Incorporated associations that employ staff are subject to PAYG withholding obligations, and may be subject to paying fringe benefit tax.
  • Incorporated associations are required to pay goods and services tax on some goods and services, and they are exempt from others.  This is a complex area of taxation and associations should seek professional advice.