Taxation Reform

Melbourne Theatre Company: Elling Photo: Marcel AucarFor a number of years AMPAG has been working with a taxation expert preparing submissions to the Federal Government on potential taxation reforms which would benefit the arts sector. Some have been adopted but AMPAG has two main issues it still wants addressed and continues to lobby about these in various forums. The first is the 75% test on GST applied to tickets, which has onerous compliance issues due to the complicated way differentially priced tickets have to be recorded. The other involves allowable contributions to a charitable institution which only allows the benefit component to be GST free.

AMPAG also lobbied in 2011 with the broader not-for-profit sector about proposals by The Treasury (May 2011) to change tax concessions to charitable and not-for-profit organisations. AMPAG agrees that commercial organisations should not be able to avoid legitimate taxation by posing as charitable organisations. However, it is important that not-for profit organisations are able to seek funding sources beyond government subsidies, engage in social enterprise and innovation, and seek income producing investments where appropriate, without being penalised or having overly complex compliance requirements.  AMPAG’s submission can be found here.

The recent draft legislation on the 'In Australia' principle has also been the subject of significant work by AMPAG. We had concerns that with the tightening up of the definitions unintended consequences may arise. Again AMPAG made a submission on the subject and also attended a Community Council of Australia Taxation Roundtable with the Assistant Treasurer, Bill Shorten, in August 2011. It seems some impact has been made as the Assistant Treasurer announced on 23 September that he had instructed Treasury to issue a revised exposure draft—still to be released.  Once it has been released AMPAG will again review it to ensure that any proposed changes do not adversely affect the performing arts sector.