Working Group to Investigate NFP Tax Concessions

The Federal Government has announced the membership and terms of reference of a new working group that will consider the support currently provided through tax concessions to the Not for Profit sector.

These include concessions for income tax, fringe benefits tax and goods and services tax, and also deductible gift recipient status.

The new working group will consider ideas raised at the 2011 Tax Forum.

"The Government is committed to supporting the NFP sector, and it is important that that support is as effective as possible," Assistant Treasurer, Senator Mark Arbib said.

"At October's Tax Forum, there was discussion about whether the current support provided through tax concessions could be better targeted.

"The NFP Sector Tax Concession Working Group will examine the current range of tax concessions and whether there are fairer, simpler and more effective ways of delivering the current envelope of support."

The Working Group will also identify offsetting savings from benefits provided to the NFP sector for any proposals that have a budget cost.

"Consultation with the broad and diverse NFP sector will be critical to achieving lasting reform," Minister for Social Inclusion Mark Butler said.

"The Working Group will form part of the NFP Sector Reform Council, and will ensure the Government hears the views of the sector on how we can best support it to do its good work."

The Working Group will be chaired by Linda Lavarch, the chair of the NFP Sector Reform Council, and will include a diverse range of representatives from the NFP sector and also technical experts.

The membership of the NFP Sector Tax Concession Working Group will be:

Linda Lavarch (Chair) – Chair, Not-for-profit Sector Reform Council
John Emerson – Partner, Freehills
Father Brian Lucas – General Secretary, Australian Catholic Bishops Conference
Elizabeth Lucas – Member, National Tax Liaison Group – FBT Subcommittee
Greg Mackie OAM – Executive Director, Ageing, SA Health and awarded the Medal of the Order of Australia for services to the arts
Tim Morris-Smith – Chief Financial Officer, Mission Australia
Heather Neil – Chief Executive Officer, RSPCA Australia
Ann O'Connell – Associate Professor, Melbourne Law School, University of Melbourne
Anne Robinson – Deputy Chair, Not-for-profit Sector Reform Council
Miranda Stewart – Associate Professor, Melbourne Law School, University of Melbourne
Joe Zabar – Director, Services Sustainability, UnitingCare Australia

The Working Group is expected to complete its work by December 2012.