The Assistant Treasurer David Bradbury said "the Working
Group was established in February 2012 to examine the current range
of tax concessions and whether there are fairer, simpler and more
effective ways of delivering the current envelope of support."
The Working Group has been asked to identify offsetting savings
from benefits provided to the NFP sector for any proposals they
recommend that have a budget cost. In other words, any
recommendations must be revenue neutral overall.
The discussion paper is not intended as a position paper and the
options canvassed are not recommendations to Government. The
discussion paper is simply to ignite debate and seeks public input
on how tax concessions can be improved to assist the NFP sector to
do what they do best – support Australian communities.
The discussion paper seeks feedback on 57 specific questions
about existing tax concessions on issues such as:
Income tax exemption and refundable franking credits
Deductible gift recipients
Mutuality, clubs and societies.
The questions are broad and require careful consideration as any
review raises the potential for a reduction of benefits.
The discussion paper poses some interesting questions and
issues, such as:
Should all charities be Deductible Gift
("DGRs")? - A possible
reform option is to expand DGR status to all endorsed charities, as
recommended in the Productivity Commissions report,
"Contribution of the Not-for-Profit Sector". It is
thought that this reform option could improve the fairness of
Australia's DGR framework and encourage charitable giving as it
would expand the scope of DGR entities.
Should the threshold for deductible gifts be increased
from $2 to $25? – The main purpose of any change
would be to simplify administration for DGRs and for donors and
potentially encourage donors to consider making larger individual
Would a clearing house linked to the ACN Register be
beneficial for the sector and the public? – With the
Australian Charities and Not-for-profits Commission supposedly
commencing early December 2012, a clearing house for gifts to DGR
entities which is linked to ACN register could promote and
encourage charitable giving. It is thought that individual
taxpayers could use the register to search for particular DGRs to
Interested parties are encouraged to respond to the 57 questions
raised in the discussion paper. Written submissions are due by 10am
on Monday 17 December 2012.
Please contact us if you require assistance in preparing your
The Working Group is to deliver the final report to Government
by March 2013.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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The income tax treatment of any property lease incentive will vary, depending on the nature of the inducement provided.
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