❓ Mr. Miles questions the impact of the Taxation Legislation Amendment Bill 2014 on charities, particularly aged care providers. The Minister assures that the bill primarily aims to rectify unintended tax exemptions and will not negatively affect legitimate charities assisting vulnerable groups.
AnsweredQoN 907Legislative Assembly
QuestionView source ↗
TAXATION
LEGISLATION AMENDMENT BILL 2014
907. Mr P.T. MILES to the
Minister for Finance:
There has been some commentary in the media lately about the
effect that the Taxation Legislation Amendment Bill 2014 will have on
charities. Can the minister clarify the impact the legislation will have on
not-for-profit aged care providers and other charities engaged in trade,
industry or commerce?
LEGISLATION AMENDMENT BILL 2014
907. Mr P.T. MILES to the
Minister for Finance:
There has been some commentary in the media lately about the
effect that the Taxation Legislation Amendment Bill 2014 will have on
charities. Can the minister clarify the impact the legislation will have on
not-for-profit aged care providers and other charities engaged in trade,
industry or commerce?
AnswerView source ↗
I thank the member for the question.
In short, there will be no impact on those organisations that
provide aged care and other charities that assist vulnerable groups. It should
be remembered that the primary purpose of this bill is to rectify the effect of
the Chamber of Commerce and Industry of Western Australia decision that came
before the State Administrative Tribunal, which allowed corporations that were
not intended to receive the tax exempt status to all of a sudden start
receiving it, so it was about tightening that up. We have put processes in
place to ensure that existing charitable organisations will be protected. The
charities law recognises four limbs: relief of poverty; advancement of
education; advancement of religion; and other purposes beneficial to the
community. It is that fourth limb that was opened up through the State
Administrative Tribunal case. The relief of poverty as the first limb
encompasses more than poverty; it includes the aged and a wide range of
underprivileged or disadvantaged members of society. The bill is designed to
restore the status quo that existed before the CCI decision and should not be
seen as a cause for alarm within the community of charitable bodies and
organisations. I would like to add that we have maintained a clause providing
that if, for any unforeseen reason, an organisation that all of us would deem
to be a charitable organisation is affected, then I as Minister for Finance,
with the concurrence of the Treasurer, can ensure that it maintains its
charitable status.
In short, there will be no impact on those organisations that
provide aged care and other charities that assist vulnerable groups. It should
be remembered that the primary purpose of this bill is to rectify the effect of
the Chamber of Commerce and Industry of Western Australia decision that came
before the State Administrative Tribunal, which allowed corporations that were
not intended to receive the tax exempt status to all of a sudden start
receiving it, so it was about tightening that up. We have put processes in
place to ensure that existing charitable organisations will be protected. The
charities law recognises four limbs: relief of poverty; advancement of
education; advancement of religion; and other purposes beneficial to the
community. It is that fourth limb that was opened up through the State
Administrative Tribunal case. The relief of poverty as the first limb
encompasses more than poverty; it includes the aged and a wide range of
underprivileged or disadvantaged members of society. The bill is designed to
restore the status quo that existed before the CCI decision and should not be
seen as a cause for alarm within the community of charitable bodies and
organisations. I would like to add that we have maintained a clause providing
that if, for any unforeseen reason, an organisation that all of us would deem
to be a charitable organisation is affected, then I as Minister for Finance,
with the concurrence of the Treasurer, can ensure that it maintains its
charitable status.
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