Tax Packs for Charities - reminder!
3 July 2000 at 1:07 pm
By now all Not for Profits should be armed with the three Australian Tax Office guides which have been produced to help the sector work within the new tax system.
The CharityPack, the GiftPack and the ClubPack are now available in the printed form and can be ordered from the ATO web site at www.taxreform.ato.gov.au or by phoning 13 24 78.
CharityPack is a guide for charitable institutions and funds, providing advice on how to be endorsed as an income tax exempt charity under the new tax arrangements and explains the need for charities to have an Australian Business Number (ABN). CharityPack helps organisations work out if they are a charity, explains the new endorsement arrangements and how to apply and touches on other taxes such as the goods and services tax, fringe benefit tax and Pay As You Go.
GiftPack is a guide for deductible gift recipients. It helps work out whether you will be eligible to receive tax deductible gifts under the new tax system and how to go about applying for endorsement as a deductible gift recipient. As well, there is a section on what sorts of gifts are deductible and what donors have to do to claim deductions for their gifts.
Tax Commissioner, Michael Carmody says the most important theme running through both of these publications is the need for charities to have an ABN in order to access any tax concessions under the new tax system.
‘If a charity does not have an ABN and receives a grant from a government agency, or payment for services, that agency must withhold 48.5 percent of their payment from them. This means the charity would be out of pocket.’
If an organisation is a Not for Profit organisation but not a charity, and is currently income tax exempt, it will continue to be exempt without having to apply for endorsement. The taxation arrangements for this organisation are explained in the ClubPack that is also available for the Australian Tax Office.
Let us know how the first days of the GST and the new tax system have gone for your organisation. E-mail your anecdotes to probono@mahlab.com .
