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Maintaining Income Tax Exemption

October 2016

Registered clubs that are established for the encouragement of a game or sport such as bowling, golf or sailing must conduct an annual assessment to maintain income tax exemption.

In order to satisfy the annual assessment, these three tests are what a sporting club must adhere to, to maintain a tax exemption: 

  • It must be for the encouragement of a game or sport
  • Encouragement must be the club’s main purpose
  • It cannot be carried on for the purposes of profit or gain to its individual members

The Australian Taxation Office has a worksheet that sporting clubs can complete to assist with their documentation of income tax exemption self-assessment. We recommend that best practice would be to complete the worksheet annually and table it at the board meeting.


Topics: Tax Exemption, Sporting Club, ATO, Self-Assessment, Clubs & Hospitality

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