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Patient care at risk due to FBI crackdown on non-profit bodies

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To: Political editor Media Monitors

Tuesday, 25 August 1998

Press Release

National Tax & Accountants' Association Level 14, 499 St Kilda Road, Melbourne

Patient care at risk due to FBT crackdown on non-profit bodies The National Tax & Accountants’ Association has confirmed that patient care at not-for-profit public hospitals would definitely sufferas a result of the Howard Governments announcement to limit the

salary packaging potential of doctors and other health executives. The bottom line is public hospitals are going to lose some of the most talented doctors In the country to private hospitals as a result of this Tax Reform announcement.

According to Ray Regan, President of the National Tax & Accountants' Association, “ For over the past 10 years, the existing FBT system has greatly assisted poorly funded not-for-profit hospitals, who unquestionably provide a vital community service, to be able to essentially offer the same 'net after-tax income' to doctors and other health staff compared to the wealthy commercial hospitals."

Ray Regan states, “Most not-for-profit organisations would simply not be able to attract talented medical staff and personnel with limited Federal Government funding unless the FBT concession was available. It is unacceptable for John Howard to remove this vital concession In the best interests of the needy in Our community”

Many of these not-for-profit employers, in order to avoid losing their valued tax-exempt and/or concessional status have imposed a 'self-regulated' 30% to 40% maximum salary sacrifice entitlement limit. That is, not less than 60% of their employee's employment entitlements must be taken in the form of taxed salary and wages.

To remove this concession means there is only one loser which is the general public who cannot afford to go to a private hospital as not-for-profit organisations will inevitably lose many talented and dedicated people who cannot afford to suffer 'net after-tax income cuts',

Ray Regan, President Mobile: 0418 320 751 Tel; 03 9866 3733 Fax. 03 9866 3072