Minister Barr: New legislation to protect the status of charities in the ACT
- Written by ACT Government
Released 29/10/2015
The ACT Government has today moved to amend Legislation to safeguard the status of Canberra charities. The move will close a loophole that currently allows non-charitable organisations to access tax exemptions which exist to support true charities.
The contribution charities make to our community cannot be underestimated and the ACT Government is committed to supporting the important work they do in the local community.
Introducing this legislation will provide certainty and protection for true charities by tightening the definition of charity across ACT government taxation legislation, bringing the legal definition into line with the common sense test of what makes an organisation a charity.
The financial impact of this tax loophole on the ACT Government is estimated at about $2 million per year – which could increase significantly. It’s important that the ACT Government act now to clarify the intent and operation of our legislation.
Tax collected by the ACT Government is essential to supporting a range of important services in our community, including schools, hospitals, roads and public transport, and providing support for vulnerable community members.
This legislation only affects professional organisations, peak industry bodies, political parties, industrial organisations, and organisations that promote trade, industry or commerce. I want to reassure genuine charities that they will not be affected in any way by this legislative change and urge them to continue with their good work.
- Statement ends -
Section: Andrew Barr, MLA | Media Releases
