Hi @m_christopher,
Income tax exempt organisations need to lodge a tax return to claim a refund of tax withheld on interest income. Even though your P&C Association is exempt from income tax and doesn't need to lodge an NFP self-review return, you'll need to lodge an income tax return to access the tax that was withheld from the term deposit interest.
When you lodge the tax return, you'll include the interest income and the tax withheld amount. The system will then assess your organisation's exempt status and calculate the refund. If the income isn't assessable due to your exempt status, or if too much tax was withheld, you'll receive a refund when the tax return is processed.
The key steps are:
- lodge an income tax return for your organisation
- include all interest income in the return
- include all tax withheld amounts
- the refund will be processed after the return is assessed.
This is the only way the system can identify the tax withheld and process your refund. You'll need to lodge the tax return with all income and tax withheld amounts included to receive the refund your organisation is entitled to.
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