The recent 2015 Intergenerational Report illustrates that we need to take continued steps to boost productivity and encourage higher workforce participation to drive future economic growth. While the report projects income growth will slow, it also shows that Australia can continue to prosper by making the best of our circumstances and opportunities. Tax reform is a critical part of the Government’s policy to create jobs, growth and opportunity.

The Federal Government has released a new tax discussion paper which begins a dialogue on how we create a tax system that supports high economic growth and living standards, improves our international competitiveness and adjusts to a changing economy and new opportunities.

This paper specifically targets the Not-for-Profit (NFP) sector asking if the current tax arrangements are appropriate - raising issues around the ongoing availability of Fringe Benefits Tax concessions and other foregone tax revenue. Governments provide a number of tax concessions to support the NFP sector. While these tax concessions help increase the level of activity in the NFP sector, the value of revenue forgone from the concessions is significant and growing steadily. Tax concessions for the sector can also increase complexity, in part because they vary according to the type and purpose of NFP organisations. In some cases, NFP tax concessions provide NFPs with a competitive advantage over their commercial competitors.

Please find the full NFP chapter of the tax discussion paper here. For more information about this process and discussion please click here or check out the interactive website. 

The Treasurer opened the conversation on tax by releasing the tax discussion paper on 30 March 2015. The Government is seeking submissions on the issues raised in the discussion paper. You have until 1 June 2015 to lodge your formal submission.