Friday, 2 August 2024

Changes to Income Tax Affecting AMSA Members FY23-24

A reminder to all sheds regarding the tax reforms which commenced 1 July 2023, that you need to have a plan implemented no later than 30 June 2024.

As previously advised, sheds are now ineligible to self-assess as income tax exempt, unless registered with the Australian Charities and Not for Profits Commission (ACNC) and endorsed by the Australian Tax Office (ATO).

So that eligible Sheds can continue to be exempt from income tax, we strongly recommend your Shed:

  • Register as a charity with the ACNC, and applies for an income tax exemption as part of this registration (Note: charity registration can be backdated and should be backdated to at least 1 July 2023).
  • If already registered with the ACNC, ensure you have income tax exemption endorsement from the ATO

​If your Shed decides not to register as a charity with the ACNC, your shed must do one of the following:

  • If the shed taxable income exceeds $416 over the financial year, an income tax return must be completed and lodged with the ATO
  • If the shed taxable income is less than $416 over the financial year, a Return Not Necessary (RNN) must be completed and lodged with the ATO.

More Information

Sheds that are not currently registered with the ACNC may refer to the ACNC website for details on the application process and to complete an application.

See here: www.acnc.gov.au/for-charities/start-charity/apply/application-checklist

Once your Shed has successfully registered with the ACNC, you will be required to submit an Annual Information Statement to the ACNC after the completion of each financial year. See more info: www.acnc.gov.au/for-charities/annual-information-statement.

Sheds already registered with the ACNC as a charity must ensure they have been endorsed by the ATO as a tax exempt charity:

If you have any questions, please contact AMSA Finance Manager Mark Lilly at mark@mensshed.net

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