Endorsement with the Australian Taxation Office
Unparalelled Expertise in Charity Tax Endorsements
Once you have set up your charity, you should consider what ATO endorsement, or other tax endorsements, your charity needs. These endorsements play a vital role in enabling charities to access tax benefits and exemptions, allowing them to operate efficiently and effectively. In Australia, there are various types of tax endorsements available at the Commonwealth level which can provide significant advantages for charitable organisations. Additionally, there may be specific revenue endorsements in Queensland.
At Commonwealth level, the first crucial ATO endorsement is for income tax exemption. This endorsement usually follows registration by the Australian Charities and Not-for-profits Commission as a matter of course. However, there are a number of special conditions that apply to income tax exemption. Consequently, you need systems in place both to comply with the special conditions and keep good records of that compliance. The consequences of an income tax assessment by the ATO for non-compliance can be draconian.
In addition to income tax exemption, there are other tax endorsements available at the Commonwealth level that further support the operations of charities. One such endorsement is Deductible Gift Recipient (DGR) status. This endorsement allows donors to claim tax deductions for their donations made to eligible charities. DGR status not only encourages philanthropic support but also facilitates fundraising efforts by incentivising charitable contributions. However, it is only available to certain classes of institution.
Further, while not necessarily requiring endorsement, there are other exemptions or concessions available, such as for fringe benefits tax exemptions or concessions, goods and services tax (GST) concessions or franking credit refunds. However, the availability of these exemptions or concessions is tightly constrained. Moreover, it is often subject to public tax rulings which can impose tighter constraints than applicable legislation. If your organisation does not meet the requirements of a public ruling, that does not mean that it is not entitled to the exemption or concession. Therefore, it might be worth considering whether you can obtain a private ruling.
Queensland Revenue Exemptions and Concessions
While Commonwealth tax endorsements are vital, it is also essential to consider specific revenue exemptions, concessions or rebates available in Queensland. Particualrly, the Queensland Revenue Office grants exemptions or concessions for various taxes and duties, such as payroll tax, land tax and stamp duty. Thus, charities may be eligible for those exemptions or concessions based on specific criteria detailed by the Queensland Government.
Our experience is broad and varied, which helps us to be flexible in assessing your needs and assisting you to achieve your desired outcomes. We would be pleased to assist you with:
ATO endorsement including:
- income tax exemption
- endorsement as a deductible gift recipient
Transfer Duty, Stamp Duty, Land Tax charitable concessions and exemptions.
Applications for Private Rulings or Objections to Assessments.
Dr Matthew Turnour