The Australian Tax Office (ATO) has released a new guide, Income tax exemption and sporting clubs.
The guide is for office bearers and advisers of non-profit clubs to use when self-assessing if they are exempt from income tax as a society, association or club established for the encouragement of a game or sport.
Organisations can download a pdf version of the guide from the ATO website.
One can use the guide to determine if your society, association or club is established for the encouragement of a game or sport. Where you are satisfied that your club is exempt from income tax, you do not need to seek approval from ATO.
Sporting Clubs are reminded that income tax exemption is not necessarily permanent. The growth of a club and changes in its constitution, focus and activities can alter the character of the club.
Therefore, it is important that clubs review their status as part of their governance processes to ensure they continue to meet the requirements for exemption.
A worksheet is included in the guide for you to use in your initial and ongoing assessments of the club’s tax status.
If you are still unsure about your club’s status, tax requirements and reporting contact the team at South East Access