Reform of the Not-for-profit (NFP) sector continues at a steady
pace. The Government has announced its intention to abolish the
Australian Charities and Not-for-profit Commission (ACNC) and that
it will not proceed with the "Better targeting of
not-for-profit tax concessions" (at this stage).
As previously announced by the Assistant Treasurer, Arthur
Sinodinos, the Government will no longer proceed with:
The targeting (through taxing) of activities that are not part
of the altruistic purposes of a charity, or better known as the
Unrelated Business Income Test (UBIT), but will explore simpler
alternatives to address to risks to revenue
Providing a definition of 'not-for-profit' in tax
Transferring responsibility for administering of the cultural
gifts program from the Ministry of the Arts to the Australian
Taxation Office (ATO)
The proposed triennial review of the guidelines for, and
organisations on, Deductible Gift Recipient (DGR) registers.
The "In Australia" special conditions, which address
the requirement for income tax exempt entities and DGRs to operate
in Australia and their use of funds outside of Australia, will
proceed under the current Government. However the inclusion of a
definition of 'not-for-profit' in the tax laws will not
The Government through the MYEFO has provided additional funding
for the Students First package which includes:
$1.2 billion over the forward estimates for an increase in
funding for Queensland, Western Australian and Northern Territory
Governments to implement a national funding agreement for schools.
The Government will fund this measure by ceasing the Trade Training
Centres, which will achieve savings of $986.5 million over five
years and further savings of $528.2 million over four years by not
proceeding with the Building Stronger Communities Fund
The Government will provide $70 million over the four years to
encourage 1,500 government schools to become Independent Public
schools by 2017. An independent public schools fund will be
established and funding will be provided through the states and
The Government has also committed to other Students First
Initiatives, including funding to improve students' reading and
writing outcomes and improving Australia's standard
The Government will provide $15 million over the next four years
to establish the Australian-Indonesia Centre. This centre is aimed
at strengthening and deepening Australia-Indonesia business,
cultural, educational, research and community links. This centre
will be based at Monash University.
The Government also aims to achieve a further savings of $2.5
million by reducing the higher education reward funding.
Also, legislation to repeal the Schoolkids Bonus has been
introduced to Parliament on 13 November 2013, as part of the
legislative package to repeal the MRRT.
Since the Pre-Election Financial Outlook (PEFO), there has been
an increase of $303 million in 2013-14 ($2.6 billion over four
years) of the Child Care Benefit and Child Care Rebate payments.
This is due to a higher than expected utilisation of child
Cap on Self-Education Expenses
The previously announced cap on self-education expenses will not
be continued under the Coalition Government. The proposed reform
would have limited work related expenses to $2,000.
There was no mention of the Government's commitment to
overseas aid in the MYEFO. In the last Federal Budget the Labor
Government intended to defer Austalia's growth target for
providing overseas aid, which would have provided $326.5 million
worth of savings in the 2014-15 year.
Because of the high costs, royal commissions should only be convened to address issues of substantial public importance.
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