NEWS  |  Politics

Henry Review Threatens Delivery of Charity Services

Thursday, 29th April 2010 at 3:08 pm
Staff Reporter
The Community Council of Australia warns that the Henry Tax Review threatens the delivery of charity services.

Thursday, 29th April 2010
at 3:08 pm
Staff Reporter



Henry Review Threatens Delivery of Charity Services
Thursday, 29th April 2010 at 3:08 pm

The Community Council for Australia (CCA) has warned the government that wholesale removal of benefits to the Not for Profit sector would have severe consequences for Australians’ ability to choose how they allocate their welfare dollars.

The CCA comments come just days before the planned release of the long awaited Henry Report.

The Henry Tax Review, due to be made public on Sunday (May 2), is expected to advocate curtailing fringe benefits taxation (FBT) exemptions for Not for Profit organisations.

CCA chairman, Rev Tim Costello says if adopted by the Federal Government, the move could “cut the throat of a sector that the public trusts”.

He says the government understands that the Not for Profit sector operates substantial welfare and community services and does them more efficiently than any new federal or state bureaucracy.

Rev Costello says Australians are among the most generous people in the world, but they need to be free to choose who they support in regular appeals and with their donations.

Rev Costello welcomed discussion about practical reforms to the existing system of benefits to eligible charitable groups to ensure they are well targeted and that any abuses are rooted out.

Costello says benefits must be accessed and accounted for transparently and reasonably.

The founding members of CCA have welcomed the imminent release of the Henry Review. It follows the release of the Productivity Commission report in February and the subsequent signing of the National Compact between the Federal Government and the Not for Profit sector.

The Productivity Commission’s report in February recognised that the charitable sector represents $43 billion worth of service provision to the commonwealth and states, and accounts for about 8 per cent of employees.

A report commissioned by CCA from Access Economics identified some significant deficiencies with current taxation arrangements and concessions for the Not for Profit sector.

The CCA says reforms which could reduce anomalies and inefficiencies include extending DGR status to all charities to remove confusion and allowing tax deductibility for all donations at the top marginal tax rate.

It says suggestions in the report that the Government move to directly fund charities may bring theoretical efficiencies but would run counter to arguments that the Australian community prefers to choose how it allocates its support for charitable causes.

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



Charities Warn Aid Cuts Are Diminishing Australia’s Regional Influence

Luke Michael

Wednesday, 11th April 2018 at 1:55 pm

New Defence Export Strategy Slammed by Australia’s Aid Organisations

Wendy Williams

Monday, 29th January 2018 at 5:35 pm

Byron Bay Beach Hotel to Be Transformed into Beacon of Social Impact

Luke Michael

Wednesday, 24th January 2018 at 3:22 pm

Charities Give Feedback on Govt Paper to Encourage Social Impact Investment

Rachel McFadden

Monday, 24th July 2017 at 9:57 am


Housing the Other 94% of NDIS Recipients

Luke Michael

Monday, 23rd April 2018 at 1:02 pm

NDIS Urged to Implement Portable Training System for Workers

Luke Michael

Tuesday, 17th April 2018 at 8:31 am

Disability Advocates Slam Plans to Outsource NDIA Services

Luke Michael

Tuesday, 24th April 2018 at 5:52 pm

Communication is Key for Shared Value

Wendy Williams

Wednesday, 18th April 2018 at 4:45 pm

Write a Reply or Comment

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

pba inverse logo
Subscribe Twitter Facebook

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

You have Successfully Subscribed!