SENATOR DEAN SMITH
SHADOW ASSISTANT MINISTER FOR COMPETITION, CHARITIES AND TREASURY
SENATOR FOR WESTERN AUSTRALIA
MEDIA RELEASE
22 October 2024
NOT FOR PROFITS SLAM DISMISSIVE GOVERNMENT OVER BUNGLED TAX REGULATION ROLLOUT
Not for profit organisations have vented their frustration at the Australian Taxation Office and Labor’s implementation of new tax requirements, labelling the Government “dismissive” and “out of touch”.
A Senate Economics References Committee inquiry into the issue, established by Senator Dean Smith, held a public hearing in Canberra today – with witnesses including the ATO, Australian Charities Not for Profits Commission, the Law Council of Australia, Community Council of Australia and representatives of negatively impacted not for profits.
The regulations require non-charitable not for profits to lodge an annual return to confirm their tax exemption eligibility.
Representatives of Agricultural Shows Australia, Stonnington Scottish Country Dancers and various Landcare Groups told the hearing how the administrative burden caused by poor implementation have put the survival of their much loved community organisations in jeopardy.
Their volunteer office bearers were, at best, forced to seek professional advice and, at worst, considering winding up their operations.
The Australian Multicultural Action Network noted the reliance on paper forms and lack of an accessible online portal, both characteristics of the ATO’s rollout, presented a difficult learning curve for new members.
Very few agreed with the ATO’s claim that the burden will ease considerably in future years thanks to a form with pre-filled details, arguing the high volunteer turnover common in the sector will require most of the work to be updated annually.
The Community Council of Australia said organisations had repeatedly told the Government how damaging failed implementation the new requirements would be, but their concerns went unheard.
“You call that a consultation, I call that a dismissive approach to our sector”, CEO David Crosbie told ATO officials.
It’s a broader sign of the Albanese Government’s negligent approach towards the not for profit sector, who it meets with but whose message it fails to understand and act upon.
The hearing was told relevant Minister Andrew Leigh has so far ignored both a letter of concern from the Law Council of Australia and requested assurances by the Community Council of Australia.
In bizarre contrast to evidence from the sector and peak bodies, the ATO highlighted various initiatives being taken to “simplify and streamline” the process, noting it was “proud” of progress so far.
Senator Smith observed to ATO officials that there was “a complete misfit between what the not-for-profit sector is telling us … and what the ATO is doing”.
Clearly, there is an unsustainable disconnect between the ATO’s perception of their responsiveness to the sector and the sector’s experience.
It is incumbent on Andrew Leigh and the Albanese Government to address that disconnect.
The Senate Inquiry is due to report at the end of this month.
ENDS