Tax
Tax Registration
Please find below tax registrations:
- Tax File Number (TFN)
- Good and Services Tax (GST)
- Pay as You Go (PAYG) withholding
- Fringe Benefits Tax (FBT)
Tax Reporting
Most of CRCs are required to lodge their GST on quarterly basis, IAS on monthly basis, and FBT yearly.
Most CRCs are not subject to income tax. Many CRCs seek an ATO private ruling to comfort directors that this is the case. However, as more CRCs are registered with the ACNC, fewer feel obliged to seek a private ruling.
Registration with ACNC - implications for employees
The tax benefits available to employees of Cooperative Research Centres (CRCs) depend on the specific tax concessions granted to the CRC as a registered charity. If the CRC is registered with the Australian Charities and Not-for-profits Commission (ACNC) and endorsed by the Australian Taxation Office (ATO) for tax concessions, it may qualify for various benefits such as income tax exemption, goods and services tax (GST) concessions, and fringe benefits tax (FBT) exemptions.
However, these benefits primarily apply to the organisation itself rather than directly to its employees. For employees to access specific tax advantages, such as FBT exemptions or reductions, the CRC must also qualify as a Public Benevolent Institution (PBI) or another special category of charity that allows such concessions. Employees of PBIs, for example, can benefit from salary packaging arrangements that reduce their taxable income. CRCs have been caught out extending these types of benefits to employees and finding out they were not entitled to do so later.
Some CRCs seek Deductible Gift Recipient (DGR) status (either for themselves or for a fund managed by them). This status allows donations to be tax-deductible for donors. DGR status takes time and requires specific wording and objectives to qualify. If the CRC anticipates DGR status as part of its future plans (becoming an independent ongoing institute, for example), it is essential to take early advice.