The Tax Concession Working Group was established in February
2012 by the then Assistant Treasurer, the Hon Mark Arbib, and the
Minister for Social Inclusion, the Hon Mark Butler MP. Its goals
are to consider ideas for better delivering the support currently
provided through tax concessions to the Not-For-Profit sector, and
it is intended to stimulate discussion, debate and feedback.
The discussion paper sets out the history and current status of
tax concessions available to NFP sector including:
Income tax exemption and refundable franking credits;
Deductible Gift Recipients;
Fringe Benefits Tax concessions;
GST concessions; and
Mutuality, clubs and societies.
The paper identifies a number of reform options and sets out
consultation questions to assist entities with responding to the
paper. Questions include whether the current categories of
exemptions are appropriate, whether all charities should be DGRs,
should the threshold for deductible gifts (currently $2) be
increased, should the rate for FBT rebates be realigned with the
FBT tax rate, and should the gaming and entertainment services of
NFP clubs be subject to a concessional tax rate for income over a
Responses to questions raised as a result of this discussion
paper are encouraged both from the sector and the broader
It is important to note that the Working Group will have to
identify savings from within the sector in order to fund any new
Written submissions in response to this discussion paper are due
by 10am on Monday 17 December 2012.
The discussion paper is available for download from the
Treasury website and submissions can be lodged online from that
location as well.
The Working Group expects to provide a final report to
Government by March 2013.
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Businesses should review their standard form contracts for unfair terms to ensure they do not fall foul of the new laws.
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