Australia Discusses Not-For-Profit Tax Reforms

by Mary Swire, Tax-News.com, Hong Kong

14 February 2012

The Australian government has announced the membership and terms of reference of a new working group that will consider ideas for improving tax concessions for the not-for-profit (NFP) sector.

The new working group is a product of last October's Tax Forum, at which a range of proposals were discussed to improve the Australian tax system more generally.

"The government is committed to supporting the NFP sector, and it is important that that support is as effective as possible," said Assistant Treasurer Mark Arbib. "At October's Tax Forum, there was discussion about whether the current support provided through tax concessions could be better targeted."

"The NFP Sector Tax Concession Working Group will examine the current range of tax concessions and whether there are fairer, simpler and more effective ways of delivering the current envelope of support," Arbib added.

Currently, there are concessions for NFPs in Australia's income tax, fringe benefits tax and goods and services tax laws.

The working group will also identify offsetting savings from benefits provided to the NFP sector for any proposals that have a budget cost, Arbib confirmed.

The working group will build on the government's broader NFP reform agenda, which includes establishing the Australian Charities and Not-for-profits Commission to provide a one-stop shop for charities to help support the sector and working with the States and Territories on a national approach to the regulation of the NFP sector, including national fundraising laws for the sector.

These reforms also include implementing a 'report-once use-often' general reporting framework for charities and a public information portal by July 1, 2013, and introducing a statutory definition of 'charity' from July 1, 2013.

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