Skip to main content
Getting the $1,000 income deduction
Not-for-profit organisations
You cannot get an exemption

If your not-for-profit cannot get an income tax exemption, you can apply to reduce its income by $1,000 and pay less tax. Effectively, you do not pay income tax on the first $1,000 your not-for-profit earns.

This is called an income deduction.

We need to approve you as a not-for-profit

We need to be satisfied that you’re a not-for-profit before you can get the income deduction. If we have not already approved you as a not-for-profit, you can send us proof when you apply for the income deduction.

Getting approved as a not-for-profit

Apply each year

You’ll need to apply for the income deduction every year. Keep a record of your income and expenses to work out your income for each tax year.

If your income after expenses is less than $1,000, you do not need to file an income tax return.

If your income after expenses is more than $1,000, you need to file an income tax return, and you’ll pay tax on the amount that’s over $1,000. 

For example, your income after expenses is $1,300. You’ll only pay income tax on $300, and you’ll need to file an income tax return showing you’re claiming the deduction.

Apply for a not-for-profit income exemption or deduction

Was this page helpful?

What did you like about this page?

Please tell us how we could improve this page?

Thanks for sharing your opinion! Your feedback has been received.

Sorry there was an issue submitting your feedback, please try again later.

Last updated: 15 Nov 2022
Jump back to the top of the page