The major concern in the not for profit (NFP) sector about the review was the proposed changes to the FBT concessions that so many organisations rely on to keep afloat. The Henry Tax review proposed these exemptions, worth around $1 billion per annum be phased out and replaced by direct government funding (see recommendations 41-44).

The Rudd Government will not implement these changes, so in the short term the FBT arrangements will stay the same. The government has not ruled out establishing a national charities commission to address the structural long term tax and regulatory issues facing the NFP sector, but this seems unlikely in the short term.

Of course maintaining the status quo does not address the gaps and inequities of the current tax exemptions, leaving many organisations out in the cold. Volunteering Victoria will continue to monitor and contribute to the debate about the long term regulatory structures within which volunteering happens.

Volunteering Victoria will discuss the implications of superannuation increases with FAHCSIA and the State Government.

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