Response to the request from the Assistant Treasurer to consult on the government's plans to reform the use of tax concessions for certain not for profit (NFP) operations

This Paper raises significant concerns about the federal government's wish to dislocate the legitimate operations of charitable entities by imposing behaviour dampening consequences on their community activities, including the burden of additional compliance costs - for no established benefit to anyone.

The overwhelming mistake treasury is making is trying to fit religious organisations and churches with rugby league and other sporting organisations, philanthropic charities, medical research, NGOs and other special interest groups all together as one common category only because they exist primarily for purposes other than profit. These do not constitute a common industry and cannot be treated the same.

The Hon Bill Shorten states "Too long has the sector waited for a government to embark on this important reform process." Unfortunately, the writer is yet to identify anybody who has sought this government action. This is a shaky foundation upon which to pursue such radical disruption.
The more common assumption is that this government must have an ideological agenda which it is refusing to disclose so as not to divert ‘consultation' discussion on what it has already decided to implement. The consultation process would be more legitimate if the government would be more transparent concerning its ultimate objective.

The process so far has failed to identify any material problem that this new comprehensive legislation will fix which could not otherwise be adequately attended to with the much lighter touch of regulatory improvement where found to be necessary and helpful.

Mr Shorten has also called for information to "identify whether there are any unintended consequences." The difficulty with this request is that not enough is disclosed by the government or treasury as to how some of their stated tax objectives are intended to apply or what overarching good they are meant to achieve.

Read the remainder of the response in the original of the letter sent to the Assistant Treasurer (PDF format))