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What
Getting the $1,000 income deduction
Who
Not-for-profit organisations
When
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.

Unless you are a registered charity with Charities Services, you must apply to us for an income tax exemption or not-for-profit status.

You can check if your not-for-profit would qualify for an exemption.

Types of not-for-profits

We need to confirm 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 confirmed you are a not-for-profit, you can send us proof when you apply for the income deduction.

Getting confirmed as a not-for-profit

Keep a record

Once we've confirmed that your organisation qualifies as a not-for-profit, you may use the income deduction each year. You will need to 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

Last updated: 24 Apr 2023
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