piggy bankSummary – The Federal budget which was delivered on 14 May 2013 contained the following announcements that relate particularly to charities and not-for-profit organisations:

 

  1. Not-for-profit sector reforms — introducing a statutory definition of ‘charity’

Statutory definition of charity

Revenue ($m)

2012/2013

2013/2014 2014/2015 2015/2016

2016/2017

Australian Taxation Office

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The Federal budget included an amended start date for the proposed definition of charity which was due to commence on 1 July 2013.

This has now been deferred until 1 January 2014. The long awaited exposure draft legislation was released in April and submissions for consultation closed on 3 May 2013. For more information regarding the proposed definition please take a look at our previous blog. Despite the later start date the Federal Government still proposes to introduce and pass the legislation in the final sitting session before the election, although we question whether this will occur with the limited number of sitting days available. The measure is estimated to have a small but unquantifiable cost to revenue over the estimates period.Continue Reading Impact of the Federal Budget on Australian Charities