Fed: Charities demand exemption from GST

AAP General News (Australia)
12-07-1999
Fed: Charities demand exemption from GST

CANBERRA, Dec 7 AAP - The federal government will come under more pressure from charities
today to reverse its decision to impose the GST on government grants to community welfare
organisations and most of their fundraising activities.

The government came under a barrage of fire yesterday from charities over its decision
not to completely exempt their government grants and fundraising efforts from the GST.

The Australian Council of Social Service and other major charities are demanding the
government immediately exempt all charities from the GST.

ACOSS president Michael Raper said the government's decision could cost charities dearly.

"We call on the government to think again about imposing the GST on grants to community
organisations and on minor charity fundraising," Mr Raper said.

"If the legislation is not changed there is no doubt that the capacity of the sector
to provide essential community services will be reduced."

Catholic Health Australia executive director Francis Sullivan said the solution was simple.

"The simple and easy solution is to provide a GST exempt certificate to church and
charitable services," he said.

Their comments came as parliament was told charities receiving GST assistance from
the federal government would be banned from criticising the government's tax policy.

A draft contract from the GST Start Up Assistance Office requires all organisations
receiving assistance to not criticise the government.

But Prime Minister John Howard denied the government was trying to intimidate charities.

"We're not in the business of engaging in any intimidatory tactics toward charities,"

Mr Howard told parliament.

Opposition family and community services spokesman Wayne Swan said the government's
message was clear.

"The message from the government is clear - if you want the money, then don't be critical
of the GST," he said.

Mr Howard denied the GST would hit the fundraising efforts of local churches, schools
and community groups, because the GST only applies to organisations with a turnover of
more than $100,000 a year.

AAP daw/cjh/de

KEYWORD: TAX DAYLEAD

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