Good 360
MEDIA, JOBS & RESOURCES FOR THE COMMON GOOD
NEWS  | 

Election 2001- Offerings for Not for Profits


Monday, 29th October 2001 at 12:10 pm
Staff Reporter
Whether the November 10 Federal election campaign is being run on international issues of leadership and security or domestic issues of health, education and the GST, what’s in it for the Not for Profit sector?

Monday, 29th October 2001
at 12:10 pm
Staff Reporter


0 Comments


FREE SOCIAL
SECTOR NEWS

 Print
Election 2001- Offerings for Not for Profits
Monday, 29th October 2001 at 12:10 pm

Whether the November 10 Federal election campaign is being run on international issues of leadership and security or domestic issues of health, education and the GST, what’s in it for the Not for Profit sector?

The Australian Democrats claim to have the only national policy to accommodate the charitable sector’s concerns.

The Democrats would increase the GST exemption level for charities from $100,000 to $500,000 and introduce a simplified compliance regime under its Charities and Not-for-Profit Policy launched in Brisbane.

The policy proposes that larger charities should have the option of claiming a fixed percentage of GST tax credits as a low cost alternative to full accounting, taking government grants completely out of the GST net and broadening the definition of charities used in tax law.

Democrats’ Charities spokesperson, Senator John Cherry says more demands are being placed on the charitable sector with more administration compliance costs – but there’s been no attempt by the other major parties at an overall national policy.

He says the Democrats have been active in defending the interests of charities for a long time and this policy demonstrates their commitment to a new deal for charities.

The Democrats say they will reduce tax compliance costs by giving smaller community groups a series of options, including the right to opt out of the GST, a simplified GST compliance regime based on fixed rebates, a simplified FBT exemption, and the exemption of grants from GST treatment.

The Democrats believe that the size of the sector requires a new Government body to regulate and assist the sector – and not the tax office. It is proposing a Charities Commission based on the UK model to manage the issues affecting the sector, together with training and assistance to those running charities.

It was pressure from the democrats that saw the Federal Government carry out the Charity Inquiry earlier this year.

An overall approach is fine but without a significant balance of power it is still up to the major parties, Labor and the Liberal/National Coalition to address the Not for Profit issues.

The Labor Party is approaching each issue individually such as the GST and a promise to review the impact of the GST on charities.

If Beazley wins office a Labor Government promises to compensate Australia’s charities for their inability under the Howard Government’s GST tax system to claim input tax credits for services supplied directly to individuals in need.

The ALP says the problem is illustrated by the example of a charity paying an electricity bill for a needy person. A recent Tax Office ruling states that because the electricity service was not supplied to the charity, it cannot claim an input tax credit on the bill it has paid.

As the charities’ “clients” are not registered for GST, the input tax credit can’t be claimed by anyone, and so the ALP says it is effectively a windfall for the Commonwealth.

It says the same problem also applies in situations where charities, for example, provide living expenses to a family taking in a foster child; or providing clothing vouchers for struggling families.

The ALP says the situation is more absurd where many of these services are provided with funding from the Commonwealth Government’s own Emergency Relief budget – currently around $26 million per annum.

This denial of GST credits effectively imposes a GST on the emergency relief activities of charities, contrary to the government’s promises that non-commercial activities of charities would be GST-free.

Labor says as an immediate measure it proposes to increase the annual Commonwealth Emergency Relief budget by $15 million as compensation for these lost input tax credits.

The Liberal Party takes an individual approach to issues affecting the sector with a list of funding priorities and reforms within the sector scattered through its 258-page web site policy statement.

How do you think the major parties have addressed issues affecting the sector in this election campaign? Post your opinion on our on-line Forum at
probonoaustralia.com.au.



FEATURED SUPPLIERS


...


Helping the helpers fund their mission…...

FrontStream Pty Ltd (FrontStream AsiaPacific)

Brennan IT helps not-for-profit (NFP) organisations drive gr...

Brennan IT

NGO Recruitment is Australia’s not-for-profit sector recru...

NGO Recruitment

More Suppliers

Tags : government,

Get more stories like this

FREE SOCIAL
SECTOR NEWS

YOU MAY ALSO LIKE

ANZSOG Scholarships Give NFPs a Chance to Invest in Future Leaders

Contributor

Tuesday, 11th July 2017 at 8:05 am

Government Opens Safer Community Grants

Lina Caneva

Thursday, 20th April 2017 at 3:01 pm

Uncertainty and Change Forecast for NFP Sector in 2017

Ellie Cooper

Tuesday, 10th January 2017 at 8:50 am

Govt Provides $1M in Catalyst Arts Funding

Lina Caneva

Tuesday, 26th April 2016 at 11:04 am

POPULAR

Red Cross Moves to Wage-Based Fundraising Model

Lina Caneva

Thursday, 16th November 2017 at 8:30 am

Concerns Raised Over New ACNC Board Appointments

Luke Michael

Monday, 20th November 2017 at 2:28 pm

New Same-Sex Marriage Bill Looks to Protect Faith-Based Charities

Luke Michael

Monday, 13th November 2017 at 5:25 pm

Adelaide at the Vanguard of Ending Street Homelessness Globally

Wendy Williams

Tuesday, 21st November 2017 at 8:43 am

Write a Reply or Comment

Your email address will not be published. Required fields are marked *


Good 360
pba inverse logo
Subscribe Twitter Facebook

Get the social sector's most essential news coverage. Delivered free to your inbox every Tuesday and Thursday morning.

You have Successfully Subscribed!