Wednesday August 2012

Tax MoneySummary – Earnings derived from “new” activities that do not directly support the NFP organisations altruistic purposes are now subject to tax.

We thought it appropriate to provide an update on the proposals for taxation of unrelated business activities (commonly referred to as “UBIT”).

In the 2011-12 Federal Budget the government announced it will reform the tax concessions provided to not-for-profit (NFP) organisations to tax the earnings after 1 July 2011 generated by ‘unrelated commercial activities’ of NFP organisations.  Earnings derived from activities that do not directly support the NFP organisations altruistic purposes are now subject to tax.


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ACNC

Summary – The House Standing Committee on Economics has presented its Report on the Exposure Draft of the Australian Charities and Not-For-Profits Commission Exposure Draft Bills.

On 15 August 2012, after completing its Inquiry, the House of Representatives Standing Committee on Economics issued its report entitled “Report on the Exposure Draft of the Australian Charities and Not-For-Profits Commission Bills 2012”.

Subject to other recommendations in its report, the Committee recommended that the House of Representatives pass the Australian Charities and Not-For-Profits Bill 2012 (ACNC Bill) and the Australian Charities and Not-For-Profits Commission (Consequential and Transitional) Bill 2012.


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