ARTICLE · 11 MAY 2011

'Not-for-profit' may now mean what it says

Gadens Lawyers

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In the Federal Budget delivered on 10 May 2011, several announcements were made that will affect the charity and not-for-profit sector

AustraliaTax

Arthur Koumoukelis

Jon Cheung

In the Federal Budget delivered on 10 May 2011, several announcements were made that will affect the charity and not-for-profit sector. These include:

tighter controls on tax concessions for charities operating business activities unrelated to their charitable activities
establishment ofa 'one-stop-shop' for the support and regulation of the sector in the form of the Australian Charities and Not-for-Profits Commission by 1 July 2012
introduction of a statutory definition of 'charity' for all federal laws
a new regulatory framework for public ancillary funds

An overview of each of the inclusions is provided below.

Tighter controls on tax concessions

Possibly the most important Budget announcement for Not-for-Profits relates to reforms to tax concessions to ensure that income tax concessions will only apply to profits generated by commercial activities that are directed back to the not-for-profit entity's charitable works.

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