Scott Ludlam (WA, Australian Greens) Share this | Link to this | Hansard source

asked the Minister representing the Treasurer, upon notice, on 21 October 2011:

With reference to the High Court of Australia ruling handed down on 3 December 2008, Commissioner of Taxation of the Commonwealth of Australia v Word Investments Limited [2008] HCA55, and the taxation treatment of not-for-profit or charitable housing organisations:

(1) Since the 'Word' decision which determined that surpluses generated by a charitable organisation were exempt from taxation if they were put back into the charity, have any issues been raised by the department in relation to charitable housing organisations.

(2) Has the department proposed legislation that places a one financial year timeline on the use of a surplus by a charitable organisation; if so, when will this be implemented.

(3) What consultation was undertaken with the not-for-profit housing sector prior to proposing this legislation.

(4) Is the department currently engaged in specific efforts to target the taxation of surpluses raised by charitable or not-for-profit organisations.

(5) Is the department or the Australian Taxation Office currently engaged in any specific effort that targets the activities of affordable housing providers.

(6) What resourcing within the department is currently devoted to charitable organisations.

(7) What resourcing within the department is currently working in the area of affordable housing.

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

The Treasurer has provided the following answer to the honourable senator's question:

(1) Since the High Court decision in the Word Investments case, the department has raised issues regarding a behavioural shift within the not-for-profit (NFP) sector including, but not limited to, the charitable housing sector. These issues were raised in respect to the growing risk that profits of unrelated commercial activities undertaken by NFP entities may not be being applied to the entity's charitable or altruistic purpose.

(2) The Government is currently in the process of consulting with the NFP sector on the design and implementation details of the 2011-12 Budget measure to better target NFP tax concessions, including with respect to timing issues.

(3) No targeted consultation was undertaken with representatives of the NFP housing sector prior to the 2011-12 Budget announcement. However, the Government met with NFP sector representatives prior to the Budget announcement.

(4) The Treasury is currently engaged in implementing the Government's 2011-12 Budget measure to better target NFP tax concessions, which will cover the entire NFP sector.

(5) The Treasury and the Australian Taxation Office are currently engaged in implementing the Government's 2011-12 Budget measure to better target NFP tax concessions, which will cover the entire NFP sector.

(6) The Philanthropy and Exemptions Unit is comprised of ten Full-Time Equivalent (FTE) staff. In addition to other responsibilities, the unit advises the Government on regulation and taxation issues for charitable organisations and the NFP sector.

The considerable expertise of the Interim Taskforce for the Australian Charities and Not-for-profit Commission is also located within Treasury and is comprised of 10 FTE staff at present. This taskforce is advising the Government on the establishment of the Australian Not-for-profits Commission.

(7) The Cities, Housing and Planning Unit is comprised of three Full-Time Equivalent (FTE) staff. In addition to other responsibilities, the unit advises the Government on housing supply and affordable housing issues.