Budget Take Out on Philanthropy
Thursday, 22nd May 2008 at 1:33 pm
The Rudd Government’s first Federal Budget has outlined some specific changes relating to philanthropy including the abolition of the former Howard Government’s Community Business Partnership.
The Government says it will not proceed with the Community Business Partnership, which was set up as an advisory group on individual and corporate social responsibility.
The Rudd Government says it will seek advice on issues around CSR from other relevant groups.
The Budget papers say this will allow savings of $1.2 million over two years.
As well the Rudd Government will not proceed with the package of GST changes for charities and other Not for Profit organisations announced by the previous government saying the move had an "unquantifiable revenue impact".
It says the package would not have been effective in improving integrity, certainty or in reducing regulatory compliance costs for the sector as a whole.
The Rudd government budget has also promised to review the complex law governing the tax deductible status of charities as well as reviewing the legislation around Prescribed Private Funds.
The Government says it will legislate guidelines to improve the integrity of prescribed private funds (PPFs), with effect from 1 July 2009.
PPFs allow businesses, families, and individuals to establish and donate to a charitable trust of their own, for the purposes of disbursing funds to a range of other deductible gift recipients.
The government says the measure will provide the trustees of PPFs with greater certainty as to their philanthropic obligations by amending and legislating the PPF guidelines, including to ensure regular valuation of assets at market rates, to increase the size of compulsory distributions and to give the Australian Taxation Office greater regulatory powers.
Philanthropy Australia’s Chief Executive Officer, Gina Anderson says she is happy to discuss the issues around PPFs and the definition of charities with the appropriate ministers.
To find out more go to www.budget.gov.au and look at Budget Paper No. 2.