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What
Qualifying for the $1,000 income deduction
Who
Not-for-profit organisations

Your not-for-profit may qualify for a $1,000 income deduction. This means the first $1,000 of income your organisation earns is free from income tax.

Check if your organisation's seen as not-for-profit

For your organisation to be seen as not-for-profit and qualify for the $1,000 income deduction it must:

  • not have the purpose of making a profit for a proprietor, member, or shareholder
  • have a constitution that does not allow for the distribution of property in any form to a member, proprietor, or shareholder.

Not-for-profit organisation rules for founding documents

Deductions for not-for-profits earning under $1,000

If your not-for-profit’s net income is under $1,000 a year the deduction means you're exempt from income tax. This means you will not need to file any income tax returns.

You still need to keep your financial records in case they’re needed in future. You may also still be liable for other tax such as GST.

Deductions for not-for-profits earning over $1,000

If your not-for-profit’s net income is over $1,000 a year you can still apply for a deduction of up to $1,000. If we approve your application the amount of income you need to pay tax on will lower by $1,000.

Last updated: 25 Jun 2021
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