This story goes back to August this year when I discovered that the Federal Government had introduced taxation for not-for-profit community groups in the 2023/24 federal budget.

I was encouraged to investigate the matter after one of the clubs that I am a member of, was assessed for a taxation payment of $6,000 for the 2023/24 year. Not-for-profit groups are now required to pay tax on any profits over $416 or any funding that is contributed for the direct benefit of the members. In the above case the group provided a small subsidy for the annual membership fees.

I commenced my investigation by contacting a number of groups that I am a member of, to see if they were aware of these new taxation requirements. To my dismay almost all had no idea that these laws had been introduced.

In 2023 a report was issued by Prof. Ian Hickey advising that collectively, volunteer contributions to Australia’s social prosperity were valued at $287.86bn, equating to 14% of Australia’s GDP in 2021.

During my investigations I received adverse reactions from a number of volunteers who have taken exception to the requirement to provide their myGov details to confirm their identity. Many have stated that they will simply resign. These new regulations require one person to accept responsibility for reporting and compliance for a community group which will almost certainly be managed by a committee.  It is suggested volunteers will find this ‘all too hard’ and we will see a massive drain from this valuable resource. These taxes will go down in history as being the greatest disincentive for volunteers that Australia has ever seen.

Further investigation took place and to my dismay the whole process of the introduction was an absolute debacle. I assembled the information that I had, and sent a copy of this to our local MP Dr. Helen Haines on 12th September. She assessed the content and then forwarded a copy to the Federal Treasurer Dr. Jim Chalmers, on the 16th September, asking him what could be done about the issues that I had raised.

After almost a month an undated response was received from the Assistant Treasurer, Andrew Leigh on the 18th October. This reponse did not address any of the issues raised which will have adverse impact on the community, but simply stated the details of the current regulations. It was simply a ‘go away and don’t annoy me’ response.

Following this I received some further information about the processes introduced by the Federal Government. The main issue that arose from this was the fact that there was no provision within the regulations to allow for an off-set of volunteer hours contributed to running these community support organisations, any fundraising that they may undertake, or the time required to comply with the new taxation regulations. My response to this is:

Whilst the Federal Government is holding out its hand for the revenue raised, there appears to be no offset allowance for volunteer hours contributed, even at the minimal rate as assessed by the Governments in each state, each year. Does the Taxation Department think that somebody waves the ‘magic wand’ and the funds mysteriously appear in the community group’s bank account??

Three weeks ago a report from a Senate Inquiry was released which highlighted the issues that I had raised in my original submission of 12th September. However, the Senate report did not include the issue of off-set time allowance for volunteer input to community support functions.

The situation is perhaps encapsulated in a comment made to me recently by a fellow volunteer who said,

“I have no problems whatsoever volunteering my time for the benefit of the community, but having been a taxpayer all of my working life, I will not, under any circumstances, volunteer my time to raise money for the Taxation Department.”

I have prepared a media alert, highlighting the adverse impact on the community and other issues created by these new laws, which will be released to key media outlets and Federal Parliamentarians over the next two weeks.

To be continued………………..

Barry O’Connor.
14th November 2024.


References cited:
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Ms Kristen Tran, A/Professor Jo-An Occhipinti, Professor John Buchanan, Dr Sebastian Rosenberg, Dr Christine Song, Professor Ian B. Hickie (2023)  A Contributing Life: A Snapshot of the Value of Social Production  The University of Sydney Brain and Mind Centre

Sydney University News (15 March 2023) - 'Australian unpaid social contributions valued at $287 billion' ​

The current infection status for Benalla is that we have had three cases reported in March/April so far this calendar year. We currently have no reported cases, or patients in hospital, all due to the diligence of our community members. Our township, and surrounding communities are complying with the regulations, however many of our businesses have closed, or are on limited trading programs, due to the restrictions.
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Our service, community and social organisations have closed down their regular meetings and events with most being managed by their executive via the internet. Our senior citizens rooms, which are also utilised by over 300 members of our U3A, have been closed. As a result, almost all of the 47, U3A courses on offer this semester have been cancelled, or are being conducted remotely. The art gallery was to be opened for limited days and hours, but is still closed due to tighter restrictions. Our sporting clubs are doing what they can to retain interest in their activities, particularly for the junior members. Most of the regional leagues have now cancelled the 2020 season because of the uncertainty surrounding the restrictions easing.

Almost every day I hear of yet another regional event being cancelled, due to the uncertainty of restrictions being imposed and the current reluctance, given the risks, of many volunteers to participate. Why would people go to all the trouble to prepare these events only to have them shut down due to a sudden change in regulations, or by a reported case of COVID19? It should also be noted that insurance for these events is now almost unprocurable due to the uncertainty of compliance, or the sudden changes in regulations. In Benalla Rural City we have seen two large historic motoring events, SCRAP, Wall to Wall, various other community annual events and the Benalla Festival, cancelled because of uncertainty. These events are generally held annually and provide funding for local businesses and the not-for-profit community organisations to continue their community support work throughout the year. With these events now cancelled, substantial funding and program support will be lost to our community, for at least one year.
On a personal level we all need to wear masks whilst out and about. Please remember that when you smile at a person they cannot see you!!

Whilst on Zoom or Skype, remember to comb your hair and put a clean top on, it does not matter what else you are wearing, the others cannot see it!!

Have you gone through the cupboards to clean out all of the ‘stuff’ that you have not used for decades? What are you going to do with it? Vinnies is a good option, but please ring beforehand to check that they are still open. RedB4 bookshop is currently closed due to restrictions. Benalla Buy, Swap and Sell on Facebook, is a good option, because people do not have to travel far to pick up the item/s. The alternate is to store the items in a safe place until Vinnies or the RedB4 bookshop re-open.

Have you started writing that book you were always going to write? I have been busy and expanded on the background of our family trees, with three books that are almost complete.

Stay alert for the next episode of “Are We Having Fun Yet?’


Barry O'Connor
August 28, 2020