SENATOR DEAN SMITH
SHADOW ASSISTANT MINISTER FOR COMPETITION, CHARITIES AND TREASURY
SENATOR FOR WESTERN AUSTRALIA
MEDIA RELEASE
18 September 2024
NOT-FOR-PROFITS GIVEN A VOICE ON ATO RULE CHANGES
In a win for Australian not-for-profit organisations, a Senate inquiry will scrutinise the Albanese Government’s bungled implementation of new tax requirements.
A motion introduced by Senator Dean Smith on behalf of the Coalition passed the Senate unopposed today.
The Senate Economics References Committee will hold a public hearing into how ATO reporting obligations are impacting more than 155,000 non-charitable not-for-profit groups.
Under the rules, they must lodge returns with the ATO to continuing their eligibility for income tax exemptions.
These not-for-profits are often small organisations like sporting clubs or Landcare groups.
Their focus is on delivering services and support to their local communities, and they have limited capacity to deal with regulatory burdens.
They are facing confusion and frustration because of Labor’s mismanagement of these reporting requirements, causing many to consider either registering as a charity to guarantee their tax exemption or cease their activities altogether.
Stakeholders have described a chaotic rollout process, characterised by vagueness and poor communication.
Landcare Victoria’s Claire Hetzel is quoted in the Institute of Community Directors newsletter as saying that there is “confusion around what the definition of a charity is”.
Ms Hetzel observed many groups are struggling to get their ABN details corrected to meet the new requirements, while others have received conflicting information from the ATO.
The inquiry provides a long overdue forum for not-for-profits to share more of these experiences, as well as calling representatives of the ATO and other Government agencies.
It is due to report on its findings by 31 October.
Comments attributable to Senator Dean Smith:
“This motion is the result of growing concerns raised with me by anxious, sometimes angry, not-for-profits across Australia.”
“The Coalition recognises how flawed Labor’s implementation of these reporting requirements has been – and how it is sapping the energy and motivation of organisations whose communities rely on them.
“Running a not-for-profit should be encouraged by ensuring administrative obligations are straightforward and well managed by Government – and this is currently having the opposite effect.
“I look forward to working with colleagues and stakeholders to explore how to deliver better outcomes for the not-for-profits sector.”
ENDS