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Review of tax for the NFP sector

Treasurer Joe Hockey says every aspect of the tax system is up for review in the wake of the Federal Government Re:think Tax Discussion Paper.

Volunteering Australia has written a submission (endorsed by the other seven State and Territory voluntary peak bodies) setting out our views about the issues raised for the not-for-profit sector, and how they impact on the volunteering sector.

In summary, we are concerned that any changes to the fringe benefits tax and deductible gift recipient concessions that reduce the overall level of financial support to not-for-profit (NFP) organisations will:

  • make it harder or more expensive for NFPs to recruit and retain appropriately skilled staff because of salary parity issues
  • make it harder for NFPs to attract charitable donations and philanthropic grants
  • consequently, reduce the amount of staff time, skills or cash available to NFPs to provide services.

Such changes will have the following impacts on the volunteering sector:

  • they will reduce the amount and quality of the volunteer support services that volunteering peak bodies and volunteer support organisations will be able to provide to the volunteering sector.
  • they will increase the demand for volunteer support services because volunteer involving organisations may:

– cut back on resourcing for volunteer management
– recruit more volunteers to replace paid staff.

We will keep you informed of any further developments affecting the volunteering sector.