NFP Tax Reform Extension
2 April 2012 at 2:43 pm
Flickr image: Some rights reserved by Michael Dawes
The Federal Government has given the Not for Profit sector another year to prepare for the new tax reforms that were announced in last year’s budget.
Assistant Treasurer David Bradbury said that after extensive consultation with the Not for Profit sector, the government had decided to extend the start date for the 2011-12 Budget measure to better target NFP tax concessions from July 1, 2011 to July 1, 2012.
Bradbury said that he and the Minister for Social Inclusion, Mark Butler, had heard the feedback from the sector about the need for more consultation following consultation with representatives from the Not for Profit sector and the NFP Sector Reform Council
“This extension of the start date of the measure will provide for additional time for consultation and it will reduce the uncertainty for those in the sector who have commenced commercial activities since the 2011-12 Budget that may be caught by the measure,” Bradbury said in a statement.
Earlier this year the Federal Government announced the membership and terms of reference of a new working group to consider the support currently provided through tax concessions to the Not for Profit sector.
These included concessions for income tax, fringe benefits tax and goods and services tax, and also deductible gift recipient status.
Bradbury said that the extended start date will only apply to new unrelated commercial activities that commenced after May 10, 2011.
He said that existing unrelated commercial activities that commenced prior to that date will continue to be covered by transitional arrangements as announced in the 2011-12 Budget.