Criterion
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




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

Competition Failing to Deliver in Human Services, Report Says

Luke Michael

Thursday, 13th September 2018 at 3:24 pm

Change of Thinking Needed to Break Cycle of Disadvantage

Maggie Coggan

Friday, 31st August 2018 at 1:29 pm

The Inequality at the Heart of Our Politics

David Crosbie

Thursday, 30th August 2018 at 7:30 am

NFPs Encouraged to Take Part in Fringe Benefits Tax Review

Luke Michael

Monday, 20th August 2018 at 4:30 pm

POPULAR

Family Faces ‘Devastating’ Loss of Support for Son with Disability

Luke Michael

Tuesday, 11th September 2018 at 8:37 am

$50 million Up For Grabs to Help NFPs Drive Change

Maggie Coggan

Monday, 17th September 2018 at 4:21 pm

Australia’s Most Innovative NFPs Highlighted

Luke Michael

Thursday, 13th September 2018 at 8:41 am

Philanthropic Leader Calls to Overhaul Economic System

Maggie Coggan

Thursday, 13th September 2018 at 8:52 am

Criterion
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!