25/07/2011 1:57:11 AM
Yasser El-Ansary -
The Institute lodged its submission, ‘Better targeting the not-for-profit tax concessions’, in response to the federal government’s May 2011 consultation paper last week.
In our response, we voiced our concerns with the scope of the reforms being planned for the not-for-profit (NFP) sector, which were announced on Budget night in May this year.
Essentially, we said that the proposed reforms to the tax concessions relating to income tax, GST and fringe benefits tax (FBT) should all be postponed until the new national NFP regulator is put in place from 1 July 2012, or perhaps even until the new statutory definition of ‘charities’ is introduced from July 2013. Any moves to significantly reform the tax laws in this area before then are premature. NFPs are a critically important and undervalued sector of our economy; relied upon by governments to deliver the services that they can’t as well as by countless Australian families who desperately need assistance in their day-to-day lives. With that in mind, it is critical that we act responsibly when it comes to reforms in this area.
At a very practical level, the government has stated that changes were supposed to come into effect from 1 July 2011, but they have not yet provided any detail about what the reforms are. How can NFPs be expected to comply with changes that they don’t yet know the dimensions of? That doesn’t seem to make a lot of sense policy-wise. When the government has had an opportunity to go into more detail as to why reforms to the tax law in this area are required, we can start to consider the key issues and think about what impact any changes would have on the capacity of NFPs to continue to provide services to the community. Until that point though, we should proceed with extreme caution.
Yasser El-Ansary (Member since: 12/05/2011 2:38:56 AM)
As General Manager of Leadership & Quality at the Institute, I'm responsible for leading the Institute’s public policy team across a wide variety of disciplines dealing with major issues that impact businesses and the broader economy. I work closely with the federal government and its agencies on policy and administration matters, as well as other regulatory bodies both within Australia and abroad. Prior to my current role I was the Institute's Tax Counsel. I've held previous positions with Australand Holdings Limited, PwC, the federal department of the Treasury and Rio Tinto Limited.
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