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

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



FEATURED SUPPLIERS


HLB Mann Judd is a specialist Accounting and Advisory firm t...

HLB Mann Judd

Helping the helpers fund their mission…...

FrontStream Pty Ltd (FrontStream AsiaPacific)

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

NGO Recruitment

Yes we’re lawyers, but we do a lot more....

Moores

More Suppliers


YOU MAY ALSO LIKE

Productivity Commission Report Identifies Information to Mitigate NDIS Risks

Alison Blake

Tuesday, 31st October 2017 at 8:39 am

Shifting the Dial: From Profits and Process to Community Building

David Crosbie

Thursday, 26th October 2017 at 8:30 am

Doubts NDIS Timeline Can Be Met – Productivity Commission

Lina Caneva

Thursday, 19th October 2017 at 8:36 am

Increase to Medicare Levy Must Not Become A Political Football

Wendy Williams

Monday, 4th September 2017 at 4:50 pm

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!