Does your Not-for-Profit entity have to pay income tax?

October, 2013

We have included the simple flow-chart below to help you identify your entity’s tax status. With any luck a few of our readers will discover that they do not need to be paying income tax or, at the very least, they can benefit from the mutuality principle.

Categories of tax exempt NFPs

–       Community service organisations

–       Cultural organisations:

•  Art

•  Literature

•  Music

•  Musical purposes

–       Public educational institution

–       Employment organisations:

•  Employee association

•  Employer association

• Trade union

–       Health organisations:

•  Public hospital

•  Non-profit hospital

•  Benefit organisations

–       Resource development organisations:

•  Agricultural resources

•  Aquacultural resources

•  Aviation

•  Fishing resources

•  Horticultural resources

•  Industrial resources

•  Manufacturing resources

•  Pastoral resources

•  Tourism

•  Viticultural resources

•  Information and communications technology resources

–       Scientific organisations:

•  Scientific institution

•  Science association

•  Scientific research fund

–       Sporting organisations:

•  Animal racing

•  Game or sport

For an entity to be income tax exempt under one of the categories listed above, it must satisfy the criteria specific to that category.

Contact Mills Oakley

For more information regarding this article, please contact:


Vera Visevic | Partner
T: +61 2 8289 5812


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