Some not-for-profit clubs, societies and associations are taxable organisations; they are not exempt from income tax. Examples of taxable NFP organisations include social clubs, certain business and professional associations, clubs whose main purpose is providing hospitality services for members, and political parties.
The ATO has prepared a guide for not-for-profit (NFP) clubs, societies and associations that are taxable. It helps these organisations to work out if they need to lodge an annual income tax return and calculate their taxable income, including how to treat mutual dealings with their members.
To see further information on Taxable Organisations, click here.
To view the ATO guide on Mutuality and Taxable Income, click here.