Industry guidelines: Education centres
Education centres and income tax
Find out here about your income tax return filing obligations if you are an education centre.
Exemptions from paying income tax
You do not need to file income tax returns if your education centre is:
- exempt from income tax under the Education Act 1989, or
- a charitable organisation.
You must, however, keep accurate records to work out your liability for other taxes, and for audit purposes.
If the education centre is a non-profit centre
If the centre’s net income (taxable income after expenses) is over $1,000, you must file an income tax return and pay tax on the income over $1,000.
Incorporated bodies
The rates of tax are:
- 28 cents in the dollar for incorporated centres from the 2012 income year onward, or
- 30 cents in the dollar for 2009 and 2010, and 33 cents in the dollar for 2008 or earlier.
If your centre's income is taxed at the company rate, note that this rate reduced from 30% to 28% for the 2011-12 income year onwards.
Unincorporated bodies
Tax rates for 2011
| Income range | Tax rate |
|---|---|
| $0 to $14,000 | 11.5% |
| $14,001 to $48,000 | 19.25% |
| $48,001 to $70,000 | 31.5% |
| $70,001 and higher | 35.5% |
Tax rates from 2012 onwards
| Income range | Tax rate |
|---|---|
| $0 to $14,000 | 10.5% |
| $14,001 to $48,000 | 17.5% |
| $48,001 to $70,000 | 30% |
| $70,001 and higher | 33% |
This type of centre will usually complete either an Income tax return for clubs or societies (IR9), or an Income tax return: estate or trust (IR6).
If the education centre is a business
Education centres that are run to make a profit must file a set of accounts and one of the following types of returns:
- Individual tax return (IR3) for a sole trader
- Income tax return companies (IR4) for a company (shareholders must file individual returns)
- Income tax return: estate or trust (IR6) for a trust
- Income tax return partnerships (IR7) for a partnership (individual partners must also file IR3 returns).
If your centre does not have financial accounts prepared, you can use our:
- Rental income schedule (IR3R)
- Schedule of business income (IR3B), or
- Farming income (IR3F)
forms to work out the taxable income. You can also use an Accounts information (IR10) form that you can file with the return instead of accounts.
You can complete the IR3 and IR4 online under "Get it done online".
You can download the forms here under “Forms and guides”, or order copies by calling our 0800 self-service line on 0800 257 773.
Due dates for tax returns
Provisional tax
Centres that are non-profits or businesses may be liable for provisional tax when their residual income tax is more than $2,500 for the year. The due dates for the three instalments of provisional tax depend on the centre's balance date.
Find out more about provisional tax.
If the centre has a 31 March balance date
You must send us the tax return by 7 July. If the return is being done by a tax agent it may be possible to file it later, because many agents have extensions of time for filing their clients' tax returns.
If the approved balance date is not 31 March
You must send us the tax return by the seventh day of the fourth month after the balance date.
Date published: 29 Sep 2010
Back to top