Guide to Giving
MEDIA, JOBS & RESOURCES FOR THE COMMON GOOD
NEWS  |  Corporate Engagement, General, Good Business, Opinion, Politics

NFPs To Be Caught in Super Tax Fallout


Thursday, 24th June 2010 at 11:55 am
Lina Caneva, Editor
The proposed Resources Super Profits Tax (RSPT) on Australia's mining industry could cost Not for Profits up to $10 million dollars annually in lost investment funds.

Thursday, 24th June 2010
at 11:55 am
Lina Caneva, Editor


4 Comments


FREE SOCIAL
SECTOR NEWS

 Print
NFPs To Be Caught in Super Tax Fallout
Thursday, 24th June 2010 at 11:55 am

The Federal Government's proposed Resources Super Profits Tax on Australia's mining industry could cost Not for Profits up to $10 million dollars annually in lost investment funds, according to fund management experts.

Australian fund managers, Private Portfolio Managers (PPM) says that amongst all the commentary regarding the proposed Resources Super Profits Tax, the effect on superannuation funds and Not for Profit organisations seems to have been overlooked.

The Head or PPM Corporate Development, Kris Vogelsong says that under the proposed tax scheme, resource companies like BHP and Rio Tinto would pay an additional tax equivalent to 40% of their 'super' profits, but the new tax will not earn imputation credits that could be reclaimed by super funds and tax exempt organisations, that own shares in resources companies.

Vogelsong says the result will be a transfer of wealth to the Government and Self Managed Super Funds, public offer superannuation products, industry funds, foundations, charities, Private Ancillary Funds and Australian NGOs are all potentially effected. 

Under the current imputation system, these entities can claim back tax paid by the companies held in their investment portfolios, however, the RSPT will not create franking credits, reducing the income that can be distributed directly or recouped through the imputation system.

He says for charities, there is nothing in the proposed tax reform package to help offset the wealth transfer to the Government and the losses could be as high as $10 million dollars annually.

He says as an investment manager who manages funds for charitable organisations, he's disheartened by the effect of the RSPT on Not for profit organisations who contribute so significantly to the social and cultural substance of Australia. 

He says it is safe to assume that the implications for the charity sector were not fully understood and have certainly escaped consideration.

Vogelsong says the Federal Government could resolve the franking credits issue by considering some form of compensation for the Not for Profit sector.

Link: http://www.ppmfunds.com/


Lina Caneva  |  Editor |  @ProBonoNews

Lina Caneva has been a journalist for more than 35 years, and Editor of Pro Bono Australia News since it was founded in 2000.

Guide to Giving

FEATURED SUPPLIERS


...


Brennan IT helps not-for-profit (NFP) organisations drive gr...

Brennan IT

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

HLB Mann Judd

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

NGO Recruitment

More Suppliers

Get more stories like this

FREE SOCIAL
SECTOR NEWS

YOU MAY ALSO LIKE

Australian Organisations Score in the Top 10 Per Cent of B Corps Globally

Luke Michael

Monday, 18th September 2017 at 5:03 pm

New CEO to Lead TDi into Next Phase as Bessi Graham Stands Down

Wendy Williams

Friday, 15th September 2017 at 9:46 am

Public Interest / Private Interest – A Fundamental Distinction

David Crosbie

Thursday, 14th September 2017 at 8:46 am

POPULAR

Moves to Stop Volunteering at Overseas Orphanages

Luke Michael

Wednesday, 13th September 2017 at 1:54 pm

Future Uncertain for Disability Organisations Following Funding Cuts

Wendy Williams

Tuesday, 19th September 2017 at 8:29 am

Majority of NFPs Are Not Believed to be Well-Run, According to New Survey

Luke Michael

Tuesday, 12th September 2017 at 4:14 pm

More Australians Are Giving Time Not Money

Wendy Williams

Monday, 11th September 2017 at 5:07 pm

4 Comments

  • Matt Johnson Matt Johnson says:

    This article is propaganda at best and irresponsible at worst. The basis of a RSPT is to ensure the wealth of a nation is retained for investment in social and government service provision.

    Protection of the ROI for charitable organisations' investments should be secondary to a strong government able to provide grants, funding and essential services and infrastructure to it's people.

    After all shouldn't the goal of any NFP be to reduce the need for it services by empowering and promoting a healthy and fruitful society.

  • Anonymous Anonymous says:

    What's the NFP sector doing investing in mining anyway? Shouldn't they be investing in socially and environmentally responsible areas – which, as per Matt's comment above, promote and empower people to build strong lives and communities.

    If the above article is true, maybe the mining tax will encourage more socially responsible investment from the very organisations that should be investing in this way. And that certainly isn't a bad thing.

  • IreneS IreneS says:

    This article is absurd!

    The mining industry has just hit the nation in the face with the most coward act in the political history of this country!
    Scheming with sordid right wing politicians to depose a prime minister that was overwhelmingly chosen by the people of this country.
    Kevin Rudd was trying to take from the rich to invest in the poor.
    You seem to be against that idea?!?

    Their executives are the richest people in the world! Social Justice demands that they be taxed accordingly.

    They create enormous social and environmental damage here and abroad.

    My NFP doesn’t need one cent from this industry!

  • Karen Mahlab says:

    Dear Irene and Matt.. Many thanks for your outraged response. It's good to hear our readers voices – however it comes.. However I must say in our defense that This article was written as a report on what PPM has claimed..It does not reflect the views of this NewsService nor of Pro Bono Australia. The debate is obviously a lively and important one that generates intense opinions. Bring it on. Regards Karen

Write a Reply or Comment

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


Guide to Giving
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!