Mitch Fifield (Victoria, Liberal Party, Manager of Government Business in the Senate) Share this | Hansard source

I should indicate to Senator McKim that the government will not be supporting his amendment. I will briefly indicate why.

The proposed amendments are attempting to make two systems overlap when they were never designed to work in combination. The tax incentives in the bill are aimed at investors who are seeking a commercial return from innovation. The proposed amendments refer to entities that are carrying out projects for public benefit with no expectation of financial return and no element of innovation involved.

The proposed amendments, in our view, duplicate and could put at risk not-for-profit regimes that are already in place to support people carrying out activities with a community and public benefit. Our pre-existing regimes and government support in this area has the benefit of registration, reporting and requirements for endorsement from the ATO. The proposed amendments could encourage companies to operate outside the not-for-profit framework and open up the possibility of abuse through tax-planning schemes.

For these reasons, the proposed amendments are seen as unattractive to potential stakeholders and unworkable. The extensive support for social, cultural and environmental activities, under entirely separate tax exemption regimes, will remain the focus of the government in providing support to people who do work, tirelessly, for public and community benefit.