The self-governance checklist helps for not-for-profit (NFP) organisations review their status as a NFP and also encourages them to review their tax obligations.
The Commissioner of Taxation Michael D’Ascenzo said the Australian Tax Office (ATO) is always looking for innovative ways to provide help and assistance to the NFP community.
“The checklist encourages charities and other non-profit organisations to review their continued entitlement to tax concessions and to help them meet their tax and super obligations,” Mr D’Ascenzo said.
NFP organisations need to manage risks and the checklist aims to encourage NFPs to establish a robust governance and tax risk management framework.
The checklist helps to identify, assess and avoid material tax and super risks so that a NFP can maintain high standards of compliance.
By providing the completed checklist to the organisation’s board, committee or trustee, NFPs are expected to be better informed about the tax and super risks of their organisation.
“The governance focus of the checklist will also enhance voluntary compliance and contribute to community confidence that tax concessions within the non-profit sector are being used as intended for the benefit of the community,” Mr D’Ascenzo said.
As part of the product development process, NFP organisations from across the sector were invited to participate in the co-design of the checklist. A range of organisations were consulted to ensure the feedback and views received were representative of the broader NFP sector.
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