Taxation

Incorporated associations, like any other organisation or corporation, are subject to taxation.  However, not-for-profit organisations, such as incorporated associations may be eligible for certain taxation concessions.  Taxation is highly complex and, therefore, this chapter will provide only a very basic overview of taxation obligations and concessions. The types of tax and exemptions that may be applicable to an association will also be discussed. 

It is important to seek expert advice and help when dealing with taxation because it is so specialised and constantly changing. 

For detailed information on taxation for not-for-profit organisations, visit the Australian Taxation Office (ATO) website at www.ato.gov.au/nonprofit. The website contains most, if not all, of the information that you will ever need regarding your association’s tax obligations. 

The ATO also operates a non-profit infoline 1300 130 248.

Key Points

  • Incorporated associations are subject to taxation unless a relevant tax exemption applies.
  • Incorporated associations may be eligible for certain taxation concessions that apply to not-for-profit organisations.  The availability of such concessions may require that the association satisfies certain criteria and be endorsed by the ATO.
  • 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.