This is a continuation of Barry's previous story and is being tabled here for those who would like to follow this up. If you would like a copy of the full report which Barry describes having circulated, Barry is more than happy to supply a copy.
This ‘trigger’ relates to the November 2024 story that I wrote about the issues with the Federal Government introducing taxation for not-for-profit community groups. The last line of that story was, ‘to be continued’.
Little did I know what was about to unfold.
In the ‘undated’ response received from Dr. Andrew Leigh, Assistant Minister for Competition, Charities and Treasury, last October, the statement was made that the new laws had been introduced by the Morrison Government in the 2021/22 budget. Whilst this seemed plausible and stated in an official Government document, I did not doubt the validity of the statement.
In December, during a completely unrelated process, whilst completing an investigation into the history of a local not-for-profit community group, I came across a section within their 2014 annual handbook, which gave details of new regulations concerning income, taxation and the threshold of $416. (In my original report I had no knowledge of the origins of the $416). Following this discovery and some further investigation, it was discovered that the statement made by Dr. Andrew Leigh, in the undated letter regarding the origins of these regulations being the Morrison government, was false. The origins of these regulations date back to 2011/12 when the ACNC was created by the Gillard Labor government. The Treasurer at the time was Mr. Wayne Swan and his Chief Of Staff was Mr. Jim Chalmers.
A copy of a screen dump from the Australian Taxation office website taken on 30th January 2025, is shown here, and clearly shows that these taxation regulations were put in place for the 2011/12 financial year.
Little did I know what was about to unfold.
In the ‘undated’ response received from Dr. Andrew Leigh, Assistant Minister for Competition, Charities and Treasury, last October, the statement was made that the new laws had been introduced by the Morrison Government in the 2021/22 budget. Whilst this seemed plausible and stated in an official Government document, I did not doubt the validity of the statement.
In December, during a completely unrelated process, whilst completing an investigation into the history of a local not-for-profit community group, I came across a section within their 2014 annual handbook, which gave details of new regulations concerning income, taxation and the threshold of $416. (In my original report I had no knowledge of the origins of the $416). Following this discovery and some further investigation, it was discovered that the statement made by Dr. Andrew Leigh, in the undated letter regarding the origins of these regulations being the Morrison government, was false. The origins of these regulations date back to 2011/12 when the ACNC was created by the Gillard Labor government. The Treasurer at the time was Mr. Wayne Swan and his Chief Of Staff was Mr. Jim Chalmers.
A copy of a screen dump from the Australian Taxation office website taken on 30th January 2025, is shown here, and clearly shows that these taxation regulations were put in place for the 2011/12 financial year.
As mentioned previously in this report the taxation threshold figure that currently exists is in conflict with other thresholds that apply to not-for-profit community groups. We have a basic threshold of $416 for profit declaration, but a requirement to register for GST, when the turnover reaches $150,000.
The only comparable threshold of $416, applies to individual Australian residents who are under 18 years of age.
It is suggested that by far the majority of community not-for-profit groups exist for the community benefit and support structures that are vital within any community, particularly in rural and regional areas. They do not exist to launder money or avoid taxation.
What a lot of politicians and public servants fail to realise is that volunteer contribution to the community is not ‘a given right’ it is a ‘privilege’.
As stated previously, these taxation laws will go down in history as the greatest disincentive for volunteers that Australia has ever seen.
If we are unable to gain some sort of resolution to the issues raised in this report, we will see thousands of experienced volunteers simply walk away from their important community support roles.
Barry O’Connor
February 2025
The only comparable threshold of $416, applies to individual Australian residents who are under 18 years of age.
It is suggested that by far the majority of community not-for-profit groups exist for the community benefit and support structures that are vital within any community, particularly in rural and regional areas. They do not exist to launder money or avoid taxation.
What a lot of politicians and public servants fail to realise is that volunteer contribution to the community is not ‘a given right’ it is a ‘privilege’.
As stated previously, these taxation laws will go down in history as the greatest disincentive for volunteers that Australia has ever seen.
If we are unable to gain some sort of resolution to the issues raised in this report, we will see thousands of experienced volunteers simply walk away from their important community support roles.
Barry O’Connor
February 2025
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