The Assistant Treasurer has announced the Government will extend the start date for the 2011 Budget proposal to better target tax concessions provided to not-for-profit organisations (NFPs) from 1 July 2011 to 1 July 2012.
Under the proposal, the NFP income tax concessions will only apply to profits generated by unrelated commercial activities that are directed back to a NFP entity to carry out its altruistic work. The proposal means that NFP entities will pay income tax on profits from their unrelated commercial activities that are not directed back to their altruistic purpose. The Government had released a consultation paper on the proposal.
Mr Bradbury said the extension of the start date will provide additional time for consultation and reduce uncertainty for those who commenced commercial activities in the NFP sector since the 2011 Budget announcement.
Further, Mr Bradbury said the extended start date of 1 July 2012 will only apply to new unrelated commercial activities that commenced after 7:30pm (AEST) on 10 May 2011. He said existing unrelated commercial activities that commenced prior to that date, will be covered by transitional arrangements announced in the 2011 Budget.
Source: Assistant Treasurer’s media release No 009, 30 March 2012
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