Submission in response to Not-For-Profit Sector’s Tax Concession Working Group Discussion Paper: “Fairer, simpler and more effective tax concessions for the not-for-profit sector”
Whilst recognising the large social good that is done by the non-for-profit organisations in groups 2 and 3 (details in the submission) we believe that it is a qualitatively different kind of good to those organisations operating in Group 1, which provide essential services to those who are unable to provide for themselves. We make this suggestion with the important caveat that there are organisations that might initially be perceived to belong solely to category 3 but actually should be identified as belonging to category 1 inasmuch as they provide access to cultural and sporting activities for people who experience social exclusion on the basis, for example, of disability, class, gender or race.
For that reason, it is possible that a net gain in social benefit could be achieved by reducing the income tax concessions available to those non-for-profits that provide less essential public goods, and redistributing the benefits elsewhere: perhaps to be used as further tax concessions for charities performing essential public benefits. A reduction in income tax concessions to a group would not have to be complete: for example, concessions could be weighted according to the level of benefit provided