Not-for-Profit Reform

The Australian Catholic Bishops Council (ACBC) has lodged its consultation submission to the Australian Taxation Office (ATO) with regards to the current operation of the “in Australia” special condition for certain deductible gift recipients and income tax exempt entities of the special conditions in the Income Tax Assessment Act 1997. Catholic Health Australia is a member of the ACBC Tax Working Group that consulted with the ACBC for the preparation of this submission, which was due 30 September 2015.

Please follow this link to read the submission. 

The tax exempt status of the NFP sector plays an important role in enabling the sector to deliver to consumers the aged care services that would otherwise not be provided. This is particularly the case with residential aged care where almost 70 per cent of the services in regional and remote Australia are delivered by the NFP sector. The current FBT and salary sacrifice arrangements are important tools in attracting qualified staff to move to these communities thus ensuring continuity of high standards of care and support and quality accommodation.

Click here to read the submission

Catholic Health Australia has given conditional support to the exposure draft Charities Bill 2013, which, inter alia, seeks to give a statutory definition of "charity". CHA's key proposals to Treasury on the bill's drafting in 2011 have been incorporated in the latest bill, but CHA fears the drafting of one section of the bill could possibly create unintended consequences that could enable a court to use either of two different definitions to assess an entity's charitable status. The confusion could arise for Catholic-owned and operated public hospitals, the submission explains.

Click here to read the submission.

On December 17, Catholic Health Australia issued its response to the discussion paper Fairer, simpler and more effective tax concessions for the not-for-profit sector. While some parts of government are pushing to reform structural arrangements for the tax treatment of not-for-profits (NFPs), Catholic Health Australia has argued on behalf of its hospital and aged care members that no strong evidence exists for major change. CHA said several reviews into tax concessions in recent years were creating a degree of "reform fatigue" within the NFP community. CHA also argued that many NFPs believe that the reviews are carried out with a view from Treasury that tax concessions aren't warranted -- a view that it rejects.

Click here to access CHA's response to the discussion paper.

Catholic Health Australia has expressed its support for the establishment of a Commonwealth body able to manage single national registration and reporting for not-for-profits and charitable organisations. CHA has, however, expressed reservations about whether legislation establishing the Australian Charities and Not-for-Profits Commission will lead to that outcome. Among other concerns, CHA believes the process is being rushed and more consultation, over a longer period of time, should be carried out. CHA has proposed five specific amendments it believes would improve the Australian Charities and Not-for-profits Commission Bill 2012 and Australian Charities and Not-for-profits Commission (Consequential and Transitional) Bill 2012.

Click here to read CHA's submission to the Parliamentary Joint Committee on Corporations and Financial Services.

As part of wider not-for-profit reform, the Government has established the Australian Charities and Not-for-Profits Commission (ACNC). Catholic Health Australia has made a submission on the ACNC Exposure Draft Bills, arguing that the legislation is flawed and will double red tape for charities while delivering no real benefit to organisations nor any gain to consumers, donors or taxpayers.

Click here to read CHA's submission to Parliament's Economics Committee.

The Federal Government is currently undertaking a review of the not-for-profit sector and is establishing the Australian Charities and Not-for-Profit Commission. Catholic Health Australia has lodged submissions in response to the Exposure Draft of the Not-for-Profit Commission Bill. Click here to read the submission.

CHA has also issued a submission in responde to proposed changes to not-for-profit governance. Click here to read the submission.

As part of this year's Budget, the Government announced that it would be working to define "charity" in law as part of a wide-ranging review of the not-for-profit sector. In a submission to Treasury, Catholic Health Australia has expressed concerns that such a move could led to unintended consequences and urged the Government to proceed carefully on the issue.

Please click here to read CHA's submission.

You are here Advocacy Not-for-Profit Reform