In the 2016-17 Queensland State Budget, the Queensland Government announced that the Queensland Office of State Revenue (OSR) will be focusing on tax avoidance, which will include those incorrectly claiming to be not-for-profit organisations and claiming tax exemptions.
Is your organisation eligible for Queensland State Government tax concessions?
Some not-for-profit organisations can register as an exempt institution under the Taxation Administration Act 2001 (Qld) (the Act), which entitles them to concessions relating to land tax, payroll tax and transfer duty. These organisations include:
- religious bodies
- public benevolent institutions
- universities or university colleges
- organisations that care for children on a full-time basis, and
- institutions that have a principal object or pursuit that is fulfilling a charitable object or promoting the public good.
- an exemption from transfer duty on the acquisition of property for an exempt purpose
- land tax exemptions for property used for an exempt purpose
- payroll tax exemptions for wages paid to employees who are engaged exclusively in work for a qualifying exempt purpose (including employees engaged via employment agents), and
- relief in relation to motor vehicle registration and insurance costs.
Not-for-profits and charities will need to consider whether they continue to meet the requirements to be a registered institution under the Act.
For more information, visit the McCullough Robertson website.