News in June

June Newsletter

The Australian Taxation Office (ATO) has recently initiated a new system of self-assessment for not-for-profit organizations. A U3A that is a registered charity will not be affected by these changes and will continue to benefit from income tax exemption as long as the Australian Charities and Not-for- profits Commission (ACNC) registration remains active. A U3A that does not wish to register as a charity will likely be required to lodge a tax return and pay income tax if it has an annual taxable income of $416 or more.

Accountant and U3A member Colin Hayman, who reviews the annual U3A accounts, had been asked to provide the Committee with a view on how we ought to proceed on this matter.

His principal recommendation was that as U3A Corangamite is not already registered as a charity ACNC, the national regulator of charities, it should become registered in order to be income tax exempt; otherwise, its funds will be assessed as income taxable. There will be obligations but these will not be too difficult to comply.

The Secretary is investigating this further.