On 23 August 2012, the Assistant Treasurer, David Bradbury, introduced theTax Laws Amendment (Special Conditions for Not-for-Profit Concessions) Bill 2012 into Federal Parliament. The Bill contains proposed amendments to the provisions of the Income Tax Assessment Act 1997 that concern:
a) the requirement that charities operate within Australia; and
b) the definition of a ‘not-for-profit entity’.
The Bill was referred to both the Joint Committee on Corporations and Financial Services and the Senate Standing Legislation Committee on Community Affairs on the same day, with the Joint Committee due to report on 10 September 2012, and the Senate Committee on 12 September.
We have a number of concerns with the proposals and have argued for several changes to the Bill in our written submissions to both Committees.
We await the Committees’ reports, and hope that our suggestions will be taken into account. However, not-for-profits and charities should be aware that in its current form, the Bill will significantly restrict the ability of deductible gift recipients and income tax exempt bodies to carry out work overseas, even where it is in line with the entity’s purposes.
DISCLAIMER: This update contains general information only. It is not all inclusive and should not be considered legal advice. You should always obtain legal advice for your specific circumstances before relying on general information.