ACNC Registration
As of 1 July 2024, non-charities with income tax exemption status will be tested for eligibility every year. The best way to minimise the impact of these changes is to become registered as a charity with the Australian Charities and Not-for-profits Commission (ACNC).
The ACNC is also applying more scrutiny to organisations on the Charity Register, to ensure that they are organisations with a legitimate charitable purpose. There is a risk that organisations already with charity registration will lose their charity status if later reviewed by the ACNC as having a non-charitable purpose.
Men’s Sheds and Community Sheds are now ineligible to self-assess as income tax exempt, unless registered with the Australian Charities and Not for Profits Commission (ACNC) and endorsed by the Australian Tax Office (ATO). Sheds should continue to be exempt from income tax if they:
- Register as a charity with the ACNC, and apply for an income tax exemption
- Are already registered with the ACNC and have income tax exemption endorsement from the ATO.
Sheds should now consider being officially registered as a Charity with the Australian Charities and Not for Profits Commission (ACNC). If your Shed has not already started the ACNC registration process then we strongly advise to do so before 30 June 2024.
Are You Already Registered with the ACNC?
Find out through a quick search of your Shed details on the ABR website.
If you are registered with the ACNC but are not income tax exempt this can be completed by application on the ATO website.
What Happens If We Don’t Register?
It is not compulsory to register with the ACNC, however if you don’t you will be required to complete an annual tax return and lodge with the ATO (or complete a Return Not Necessary form if taxable income is less than $416).
If you have any questions please do not hesitate to email your questions through to the team: admin@mensshedswa.org.au.
How to Register
Prior to registering you need to make sure that you have all of the required information and documentation to hand. A full checklist of what you will need to provide is found on the ACNC website. This information is extensive and will help you to get everything ready.
Once you have gathered the information on the above checklist, you need to:
- Sign up to the Charity portal: Video: Signing up to the ACNC Charity Portal and accessing the ACNC Charity Portal | ACNC
- Start the application process here: Applying for charity registration | ACNC
How have others done it?
Here is an example of a Shed already registered with the ACNC.
Showgrounds Community Men’s Shed Inc. | ACNC
What Happens After Registration?
Once your Shed has registered with the ACNC, you will be able to submit an Annual Information Statement to the ACNC after the completion of each financial year. See more info here. (This will mean that you should not have to submit an annual statement to DMIRS).
Do We Need to Register for DGR Status?
Deductible Gift Recipient (DGR) registration is not required for the purpose of registering as a charity; this can be done at a later date. DGR status will enable your shed to received tax deductible gifts and donations. Find out more about what is involved here.
Does applying for charity status guarantee charity tax concessions?
No, but you can apply for charity tax concessions from the Australian Tax Office (ATO) when completing the ACNC’s charity registration application. The ATO decides on charity tax concessions, but applying when completing the ACNC charity registration form means that you do not have to complete a separate application with the ATO. Instead, you just need to complete the tax concessions section contained in the ACNC application.
After the ACNC registers your organisation as a charity, they will forward the application for tax concessions to the ATO. The ATO then assesses your eligibility for charity tax concessions, and will inform you of the decision.
If you don’t apply for charity tax concessions through the ACNC charity registration application, you can apply directly through the ATO at a later date.
You can find out more here.
What are the Benefits of Registering?
Fundraising : Acknowledgement as a charity will help Sheds in fundraising, offering reassurance that the organisation is legitimate and has transparent record keeping:
- Registered charities can display the Tick of Charity Registration on documents (such as on the charity’s letterhead, emails and website) to publicly demonstrate your charity’s ACNC registration
- Have a free online presence on the ACNC Charity Register where the public, potential donors and funding agencies can find out information about them.
Charity Tax Concessions Sheds can apply for charity tax concessions (such as income tax exemption or goods and services tax concessions) from the ATO (your charity must be registered before you can apply for concessions).
DGR : Sheds can apply for certain categories of deductible gift recipient (DGR) status – some categories are only available to registered charities.
Minimised reporting : Associations that are also charities registered with the ACNC may be exempted from providing the annual information statement to the Department of Energy, Mining Industry Regulation and Safety (DMIRS) if they submit the ACNC’s information statement by the due date. More information here.
If We Register Will Our Shed be Required to Submit an Audit Report?
Most Sheds will be classed as ‘small charities’ for which it is optional to submit a financial report in the ACNC Annual Information Statement.
There is no ACNC requirement for a small charity to have its financial report reviewed or audited, however, the ACNC does encourage small charities to submit a financial report as part of the Annual Information Statement.
More information here.
Advice for Men’s Sheds
While completing the checklist, take note of the following:
Legal structure
Most Sheds will be Incorporated Associations. Check here.
Organisation name
If you are an incorporated association don’t forget to include INC. on the end of your organisation name.
Date of establishment
Charity registration should be backdated to at least 1 July 2023.
Charity subtypes
To be eligible for registration, your organisation’s purposes must be charitable (or ancillary to a charitable purpose). Check your organisation’s Objects in your Rules (Constitution). Men’s Sheds are charitable under ‘Advancing Health’. Check your Rules to make sure this is clear.
Example Objects (from Men’s Sheds of WA Rules):
“[Legal Name of Your Organisation] is a public institution which has the charitable purpose of advancing social and public welfare by:
(1) Advancing men’s mental and physical health and wellbeing and preventing social isolation;
(2) Providing a physical location where it supports individuals to undertake activities, or work on projects, in the company of others.
(3) Supporting and promoting the prevention and control of diseases in men.”
Supported by
Our Patron
His Excellency the Honourable Chris Dawson APM
Governor of Western Australia and Mrs Darrilyn Dawson
