Consultation paper released: Fairer, simpler and more effective tax

On 2 November 2012, the Assistant Treasurer and the Minister for Human Services and Social Inclusion announced the release of the consultation paper, Fairer, simpler and more effective tax concessions for the not-for-profit sector.

In this paper, the Working Group considers the history and current status of tax concessions for the not-for-profit sector and seeks the views of the not-for-profit sector and the broader community on a number of reform options.

The consultation paper’s reform options cover;

  • income tax exemption, including charity endorsement and self-assessment, tax-free threshold for taxable non-profit organisations and refundable franking credits;
  • deductible gift recipient (DGR) status, including DGR endorsement of charities, tax deductibility of gifts and public fund requirements;
  • fringe benefits tax (FBT) concessions, including eligibility criteria for FBT exemption and rebates, meal entertainment and entertainment facility leasing benefits and FBT rebate rates and FBT concessions caps;
  • GST concessions, including fundraising, GST treatment of non-commercial supplies; and
  • mutuality, clubs and societies, including gaming, catering, entertainment and hospitality trading activities and the mutuality principle.

Over the next 6 months, the Working Group will consider submissions made in response to this discussion paper and conduct targeted consultation with interested stakeholders. These consultation activities will assist to shape the Working Group’s final report to the Government in March 2013.

The closing date for submissions is Monday 17 December 2012.

CLICK HERE for further information about the paper and how to include a submission.

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