Rachel Siewert (WA, Australian Greens) Share this | Hansard source

Members may recall that late last night I moved this amendment that relates to lifting the current tax-free ceiling on fringe benefits for public benevolent institutions, charities, not-for-profit hospitals and other relevant not-for-profit organisations. People will recall that I have highlighted already the value of the not-for-profit sector to the Australian community.

I find it very timely that today, in the Australian, Frank Quinlan, Executive Director of Catholic Social Services, has an opinion piece that talks about tax changes for church and charitable organisations. I will quote just a few parts of the comments that he makes in highlighting the importance to the community sector of raising this ceiling. He says:

For many, the term salary packaging conjures images of highly paid executives enjoying luxury cars, restaurant meals and other fringe benefits while avoiding paying their fair share of income tax.

But this scenario is far from the reality for the many people working in the charity and community sector.

He then says:

The salary-packaging program is voluntary, and is more administratively burdensome than paying simple salaries, but is attractive to the agency because it has the net result of delivering more services per dollar of funding received from all sources.

He goes on to say that the problem for the now Labor government, however, goes well beyond this current legislation. That goes to the issue I was talking about yesterday, which is the longer term viability of the sector. He says:

They have inherited a community sector facing many challenges. Demand for services has never been higher. Competition for staff has never been greater. The long-term impact of competitive tendering during the past 20 years has squeezed far greater efficiencies from community services than have been achieved in government during the same period.

He continues:

However, even bigger questions arise from this crisis. Why is the community sector dependent upon special taxation arrangements, inconsistently applied exemptions and the good will of its workforce for viability? Should a sector that is delivering essential services to the most vulnerable members of the community have to rely on people of goodwill working for low salaries in programs that are in great demand but never adequately funded?

He asks:

Have governments delivered the reforms required in their own operations to allow the sector to flourish?

This points to the longer term crisis that the community sector is facing, which goes to the issues I raised yesterday in my speech in the second reading debate. However, the point here with this particular amendment is that we need to acknowledge that the community sector is facing a crisis. It has a number of problems in attracting and retaining staff to deliver its services. I would remind the chamber that the sector represents over $50 billion worth of services to the Australian community, without which I do not believe we could function as a civil society.

The sector is saying that it needs this issue dealt with now, while we deal with the sector. That sector plays a vital part in the community in which we all live. Raising the cap now will not fix all of the sector’s issues, and I am not claiming that it does. However, the Greens are saying that, while the longer term issues are being dealt with, this will go a long way to relieving some of the tensions and pressures on the sector in the short term to enable it to deliver better salaries and support for its staff.

I was pleased that there is an acknowledgement, I believe, from government, as I articulated yesterday, reading from the media release by Senator Ursula Stephens, that they are:

… dedicated to a new era of partnership with the not-for-profit sector …

and that they:

… will continue to find new ways to support and promote the crucial work of the staff and volunteers within the sector in helping disadvantaged Australians.

I say to government and to the opposition: this is one new way—in fact, just a new amendment to an old way—of helping the sector right now in delivering increased salaries and better support for our community sector. That is why I moved the Greens amendment, which raises the cap to $40,000 for not-for-profit institutions and also deals with the issue of raising the cap for not-for-profit hospitals and other not-for-profit organisations.