Avoid Losing Deductible Gift Recipient Status

NFP’s and charities must meet certain criteria, or apply for an extension, before the end of the December 2022 to receive crucial DGR status.

Automatic 12-month general transition period, giving DGRs until 14 December 2022 to become a registered charity.

Additional 3-year extension in limited circumstances.

Time is running out, and this a quick reminder that directors of companies in Australia apply for their director’s identification Number (DIN) by the 30th November deadline!

The Australian Taxation Office (ATO) is responsible for delivering the director ID service through ABRS, while ASIC enforces related offences.

Model constitution

Changes to include

• clarifying the obligations of entrance fee payments

• clarifying the process of filling casual vacancies by the committee

• allowing associations greater flexibility to conduct business outside of meetings ie telephone and other electronic means

New requirement from 1 July 2023, non-charitable income tax exempt not-for-profits with an active Australian Business Number will need to submit online self-review forms to the ATO to remain eligible for the exemption.

Not for profits will have to fill out a worksheet to prove income tax exemption status, as not all not for profits are exempt; non-profit clubs, societies and associations will be affected.

Charities and certain NFP’s must report to the Australian Charities and Not for Profit Commission – ACNC.

Charities and NFP’s must submit annual information statements to the ACNC.

Changes to charity size thresholds from the 2022 Annual Information Statement and beyond.

The details below outlines these thresholds.

The Director Identification Number (DIN) will require all directors to confirm their identity. It will be a unique identifier for everyone who consents to be appointed a director under the corporations’ Act 2001 (Cth)

All directors will be required to establish their identity with the new Commonwealth Registrar before receiving their unique director number. They will retain their DIN throughout their lifetime, even if they cease to be a company director.