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Majesty0887(Newbie)Newbie
3 Oct 2024

I’m curious about whether I need to pay income tax on my earnings as an employee of a non-profit community organisation.


I believe this organisation may qualify for tax exemption because it meets the requirements of an exempt NFP listed here: https://www.ato.gov.au/businesses-and-organisations/not-for-profit-organisations/your-organisation/does-your-not-for-profit-need-to-pay-income-tax/income-tax-exempt-organisations . The organisation i work for also describes itself as a 'not-for-profit community organisation dedicated to providing subsidised services to improve the well-being of the local community.'


Can anyone clarify the tax implications in this situation?

3,335 views
1 replies
3,335 views
1 replies

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Most helpful reply

RachATO(Community Support)Community Support
4 Oct 2024

Why hello @Majesty0887, we weren't expecting you!

 

*tidies desk & curtseys*

 

While the NFP organisation you work for may be tax exempt (meaning the organisation won't be assessed for tax purposes), the exemption doesn’t extend to employees.

 

So, if you're an Australian tax resident, the first $18,200 of your income won't be taxed, but anything beyond that will be. You can use our online tool to work out if you need to lodge a tax return, but you probably will if the NFP withholds tax from your payments and/or you have other income sources.



All replies

Most helpful reply

RachATO(Community Support)Community Support
4 Oct 2024

Why hello @Majesty0887, we weren't expecting you!

 

*tidies desk & curtseys*

 

While the NFP organisation you work for may be tax exempt (meaning the organisation won't be assessed for tax purposes), the exemption doesn’t extend to employees.

 

So, if you're an Australian tax resident, the first $18,200 of your income won't be taxed, but anything beyond that will be. You can use our online tool to work out if you need to lodge a tax return, but you probably will if the NFP withholds tax from your payments and/or you have other income sources.



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Do I pay income tax on earnings from a non-profit organisation? | ATO Community