Non-Profit News Service No. 0328 - Consultation paper released: Better targeting of not-for-profit concessions

On 27 May 2011, the Assistant Treasurer announced the release of the consultation paper, Better targeting of not-for-profit concessions.

Some extracts from the Assistant Treasurer's media release No. 083 are included below:

"By better targeting tax concessions in the not-for-profit sector, the Government is encouraging charities to direct profits generated by unrelated commercial activities back to their charity's altruistic purposes," he said.

"The reforms to NFP tax concessions will not affect the use of tax concessions that support a charity's related commercial activities."

The reforms will also not affect not-for-profit entities carrying on small-scale or low-risk activities such as lamington drive fundraisers, school fetes and leasing out of church halls, or the principle of mutuality and, therefore, the tax treatment of clubs.

Making a submission on the consultation paper

The consultation paper Better targeting of not-for-profit tax concessions has been released to seek public views on possible approaches to implement the budget announcement to better target non-profit tax concessions to the altruistic activities of non-profit organisations.

For information about how to make a submission, and to view the paper, refer to the Consultation Paper - Better Targeting of Not-For-Profit Tax Concessions on the Treasury website.

The closing date for submissions is Friday 8 July 2011.

We previously advised of the non-profit sector reforms, including this new measure, in Non-Profit News Service No. 0325 - 2011-12 Budget: Measures relevant to non-profit organisations.

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