The Annual Turnover Test

As we have seen, an entity is required to register if its "annual turnover" is $50,000 or more. This means that it must register if either of the following applies:

• its current annual turnover is $50,000 or more, except if the Tax Office is satisfied that the projected annual turnover is below $50,000; or
   
• its projected annual turnover is $50,000 or more.

If you are a non-profit body, the corresponding threshold is $100,000. Under the income tax law, a non-profit body must not be carried on for the purposes of profit or gain to its individual members. In addition, its constitution must prohibit a distribution of profits or assets among members of the organisation during its lifetime or on its winding up.