Your non-profit may qualify for a $1,000 income deduction. This means the first $1,000 of income your organisation earns is free from income tax.
Deductions for non-profits earning under $1,000
If your non-profit’s net income is under $1,000 a year the deduction means you are exempt from income tax. This means you will not need to file any income tax returns.
You still need to keep your financial records in case they’re needed in future. You may also still be liable for other tax such as GST.
Deductions for non-profits earning over $1,000
If your non-profit’s net income is over $1,000 a year you can still apply for a deduction of up to $1,000. If we approve this the amount of income tax you need to pay will lower by $1,000.