Non-Profit News Service No. 0386 - Consultation paper released: Fairer, simpler and more effective tax concessions for the not-for-profit sector

On 2 November 2012, the Assistant Treasurer and the Minister for Human Services and Social Inclusion announced the release of the consultation paper, Fairer, simpler and more effective tax concessions for the not-for-profit sector.

An extract from the joint media release No. 134 is included below:

The purpose of the paper is to stimulate discussion, debate and feedback to the NFP Sector Tax Concession Working Group. It is not a position paper and the options canvassed are not recommendations.

Extracts from the chair's foreword in the consultation paper are also included below:

In this paper, the Working Group considers the history and current status of tax concessions for the not-for-profit sector and seeks the views of the not-for-profit sector and the broader community on a number of reform options. The reform options canvassed in the discussion paper have been put forward merely to gather information that will assist the Working Group to evaluate each option.

Over the next 6 months, the Working Group will consider submissions made in response to this discussion paper and conduct targeted consultation with interested stakeholders. These consultation activities will assist to shape the Working Group's final report to the Government in March 2013.

The closing date for submissions is Monday 17 December 2012.

The consultation paper's reform options cover:

  • income tax exemption, including
    • charity endorsement and self-assessment
    • tax-free threshold for taxable non-profit organisations
    • refundable franking credits
  • deductible gift recipient (DGR) status, including
    • DGR endorsement of charities
    • tax deductibility of gifts
    • public fund requirements
  • fringe benefits tax (FBT) concessions, including
    • eligibility criteria for FBT exemption and rebates
    • meal entertainment and entertainment facility leasing benefits
    • FBT rebate rates and FBT concessions caps
  • GST concessions, including
    • fundraising
    • GST treatment of non-commercial supplies
  • mutuality, clubs and societies, including
    • gaming, catering, entertainment and hospitality trading activities
    • the mutuality principle.
Further Information

For information about how to comment on the consultation paper, and to view the paper, refer to Consultation Paper - Fairer, simpler and more effective tax concessions for the not-for-profit sector on the Treasury website.

For information about the Non-Profit News Service, including how to subscribe and links to previous articles, see About the Non-Profit News Service.

We encourage your feedback and suggestions for future topics to be covered by the news service. You can do this by:

End of further information
    Last modified: 15 Nov 2012QC 26685