The Henry tax review was commissioned by the previous Rudd Labor government to undertake a comprehensive review of Australia’s tax regime. The report and the Federal Government’s response was handed down on 2 May 2010.
In the lead up to the release of the report speculation was rife regarding significant reform to the existing taxation concessions available to the not-for-profit sector. Specific recommendations made in the report included:
All these changes, if implemented, would have a significant impact on the sector, including the structuring of remuneration packages for employees.
The Federal Government ruled out the introduction of these recommendations, other than taxing fringe benefits in the hands of employees which it remained silent on at the time and to this day. With regards to this specific recommendation it is a matter of “watch this space”…but without holding your breath. With the recent political events and the “Country Independents” pushing for a Tax Summit in June 2011, the above tax recommendations could very well make their way back onto the agenda.
For more information on these changes and how they may affect you, contact your usual Grant Thornton advisor.
To download a PDF copy of the October 2010 edition of our Not-For-Profit Industry Insider, click here.