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Transcript of doorstop: 17 June 2008: Parliament House, Canberra: impact of tax changes on charitable sector.



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DOORSTOP PARLIAMENT HOUSE, CANBERRA TUESDAY 17 JUNE

FRANK QUINLAN, EXECUTIVE DIRECTOR

IMPACT OF TAX CHANGES ON CHARITABLE SECTOR

Thanks for coming. I just want to talk briefly about changes to the way in which [Fringe Benefits Tax] is being calculated for the purposes of Family Tax Benefit and other payments.

It has a detrimental impact on many low-income workers in particular who are working in the community sector.

These changes arise out of legislative changes that were made in 2006 and we're now seeing the impact of those changes from the 1st of July.

What these changes are doing is affecting the way in which community service organisations, charities, ambulance services and other organisations can pay their workers through salary packaging.

These changes are really the end of a long period of erosion of benefits for community organisations.

Traditionally these salary packaged arrangements have been paid as compensation for the low wages that community sectors - community sector workers are being paid.

We're concerned that an ongoing erosion of these benefits will really have a detrimental impact not just on the families of workers who are doing a great job in some of the hardest of community services, but will have an impact on the whole sector and its capacity to retain good staff.

Thanks.

17 June 2008

CONTACT Judith Tokley 02 6285 1366 / 0408 824 306