The New ATO Reporting Obligations of Clubs and Societies: Maintaining Tax Exempt Status – Peter McDonald (Tertiary Balance Pty Ltd)

BIO: Peter McDonald is a registered tax agent. He is founder and director of Tertiary Balance, an accounting practice. He has been a member of various ATO peak consultative forums and is a regular speaker on tax issues. He has worked extensively with student clubs on tax and regulatory compliance issues. He assisted with training the campus services sector when GST was first introduced.

 SESSION OVERVIEW: In the 2021-22 federal budget the Government announced changes that apply to non-charitable not-for-profits. Under these changes, from July 2024 most university clubs will be required to lodge an annual self-review return with the ATO to be income tax exempt. Clubs that do not lodge this return each year may be liable for income tax.

This session will cover:

• Identifying clubs subject to the new reporting obligation;
• Tips to help clubs to meet their new reporting obligations;
• Identifying clubs liable for income tax and/or GST;
• Not-for-profit clauses recommended for club constitutions;
• Helping clubs that get into trouble with their tax compliance;
• Insurance for clubs if the ATO comes knocking – is it viable?
• When can student office bearers become personally liable;
• High office bearer turnover – the ABR reporting problem;
• Good financial reporting & housekeeping practices for clubs;
• Financial / compliance handover checklists for clubs to use;
• How much support should Guild/Uni provide in this area?