Assistant Treasurer David Bradbury said after extensive consultation with the not-for-profit (NFP) sector, the government had decided to extend the start date for the 2011-12 budget NFP tax concessions from July 1, 2011 to July 1, 2012.
Mr Bradbury said representatives of the NFP sector and the NFP Sector Reform Council had called for more consultation.
"This extension of the start date of the measure will provide for additional time for consultation and it will reduce the uncertainty for those in the sector who have commenced commercial activities since the 2011-12 Budget that may be caught by the measure," he said in a statement.
The NFP sector has been traditionally granted significant support through a range of tax concessions on income tax, fringe benefits tax, GST and also deductible gift recipient status.
Changes introduced in last year's budget aim to ensure tax concessions are targeted only at those activities which directly further a NFP group's altruistic purposes.
Under this measure, NFP income tax concessions will apply only to profits generated by unrelated commercial activities that are directed back to a NFP entity to carry out its altruistic work.
Mr Bradbury said the extended start date applied only to new unrelated commercial activities that started after May 10, 2011 and existing unrelated commercial activities that commenced before that date would continue to be covered by transitional arrangements as announced in the 2011-12 budget.
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