Summary – Earnings derived from “new” activities that do not directly support the NFP organisations altruistic purposes are now subject to tax.

We thought it appropriate to provide an update on the proposals for taxation of unrelated business activities (commonly referred to as “UBIT”).

In the 2011-12 Federal Budget the government announced it will reform the tax concessions provided to not-for-profit (NFP) organisations to tax the earnings after 1 July 2011 generated by ‘unrelated commercial activities’ of NFP organisations.  Earnings derived from activities that do not directly support the NFP organisations altruistic purposes are now subject to tax.

Continue Reading Update: NFPs and UBIT (taxation of ‘unrelated business income’)