05 Apr 12 Preamble - Thursday 5 April, 2012
As we all head off for an Easter break, it's worth sparing a thought for those members that will be spending some or all of Easter at their desks, whether to resolve issues generated by complex tax laws, zealous ATO audit activity or other tax-related matters.
A sector particularly overwhelmed with change this year is the Not-For-Profit (NFP) sector. Practitioners are awaiting details of several proposed reforms, including in relation to better targeting of NFP tax concessions, a statutory definition of "charity" and the establishment of the Australian Charities and Not-For-Profits Commission.
Late last Friday evening, the Assistant Treasurer jointly announced an extension of the start date for the 2011 Budget measure to better target NFP tax concessions (intended to limit the effect of the Word Investments decision) from 1 July 2011 to 1 July 2012.
The Tax Institute congratulates the Government on recognising the significant challenges faced by this sector in dealing with the upcoming raft of legislative changes via the grant of this extension, for which we strongly advocated in our submission on Treasury's Consultation Paper on the measure.
We hope the Government will continue to pay heed to NFP sector concerns and consult closely on all proposed reforms, including the introduction of a statutory definition for charities, a sweeping change for the sector by any count.
Stephanie Caredes ATIA and Deepti Paton ATIA