Community Sector Banking
MEDIA, JOBS & RESOURCES for the COMMON GOOD
News  |  Policy

Draft Report Raises Fears Over FBT Exemption Removal


Monday, 21st December 2009 at 3:31 pm
Staff Reporter
Productivity Commission warned over possible removal of FBT exemptions and the effect on NFPs

Monday, 21st December 2009
at 3:31 pm
Staff Reporter


0 Comments


FREE SOCIAL
SECTOR NEWS

 Print
Draft Report Raises Fears Over FBT Exemption Removal
Monday, 21st December 2009 at 3:31 pm

 ACFID claims that without FBT exemption, many NFPs would face acute financial difficulty. 
 
In its submission, ACFID accuses the draft report of taking for granted many assumptions that FBT causes a skewing of the market, without adequate evidence.  ACFID says the provision of fringe benefits is crucial to the successful recruitment and retention of quality staff in the face of competition from higher incomes offered by government and private organisations. 
 
Without the FBT exemption, ACFID claims NFPs would have to pay an extra $10,000 to each of their full-time employees.  With 1,400 employees across the membership of ACFID, that would result in a wages shortfall of $14 million – a worrying figure as international non-government development organisations make up a small part of the NFP sector.
 
The Productivity Commission was asked as part of the scope of the review to examine the extent to which tax exemptions accessed by NFPs may affect the competitive neutrality (‘A principle that promotes equal treatment of competing organisations to encourage a level playing field’) of the market. 
 
ACFID expresses serious concern that the argument of anti-neutrality raised in the draft report will be used by the Henry Review of Australia’s Future Tax System to abolish the FBT exemption.
 
Like many other submission to the Commission, ACFID also laments the lack of action stemming from previous Government inquires into the Not for Profit sector to which they contributed.      
 
To read the submission in full, click here : www.pc.gov.au/__data/assets/pdf_file/0005/93173/subdr299.pdf
To view all of the submissions, click here : www.pc.gov.au/projects/study/not-for-profit/submissions




Got a story to share?

Got a news tip or article idea for Pro Bono News? Or perhaps you would like to write an article and join a growing community of sector leaders sharing their thoughts and analysis with Pro Bono News readers?

Get in touch at news@probonoaustralia.com.au

Get more stories like this

FREE SOCIAL
SECTOR NEWS

Write a Reply or Comment

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



YOU MAY ALSO LIKE

Mental health system failing vulnerable Aussies

Luke Michael

Friday, 1st November 2019 at 12:29 pm

Time to pay up!

David Crosbie

Thursday, 24th October 2019 at 8:43 am

A fairer tax system?

Joe Zabar

Tuesday, 4th June 2019 at 8:18 am

Sector Slams Social Housing Spending at All Levels of Government

Maggie Coggan

Wednesday, 23rd January 2019 at 3:34 pm

POPULAR

Our royal commission is not yet a safe place for people with disability

Emma Bennison

Wednesday, 6th November 2019 at 4:59 pm

A sad and sorry history of Newstart

Luke Michael

Tuesday, 19th November 2019 at 8:00 am

Report finds NFP boards lack leadership in fundraising

Luke Michael

Wednesday, 13th November 2019 at 2:30 pm

Why Australia needs more noisy charities!

David Crosbie

Thursday, 7th November 2019 at 8:58 am

Community Sector Banking
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!