There has been significant tax and governance reform of the not-for-profit sector over the last two years, with many announcements made. There is little in this budget that will specifically impact on the taxation and governance of the sector, allowing it time to digest the previously announced measures. There are a number of funding initiatives which will interest some not-for-profits.
National disability insurance scheme
One of the biggest measures announced in the budget is $810 million in funding for the national disability insurance scheme, This is a significant reform with wide range impacts for a number of the vulnerable in society.
Better targeting of not-for-profit concessions
We note the previously announced deferral of the better targeting of not-for-profit tax concessions measures. This has now been moved from 1 July 2011 to 1 July 2012.
International aid
The Government has deferred the target date by which it intends to provide foreign aid equivalent to 0.5% of gross national income, saving $442.7 million in the 2012-13 year. Despite this, Australia's Official Development Assistance (ODA) will increase to $5.2 billion in 2012-13; an increase of $2 billion since 2001. The Gillard Government's plan is intended to deliver real results for the poor by 2015-16.
The plan intends to:
- Enable 4 million overseas boys and girls to enrol in schools, and also improve the quality of education for 20 million other children;
- Vaccinate 10 million children and provide access to safe drinking water for over 8.5 million people;
- Provide over 2.3 million poor people with access to financial services; and
- Provide assistance to an estimated 30 million people in crisis situations.
Community Based Employment Advice services
$7.1 million will be allocated to better meet demands of clients in regional areas with restricted access to employment services.
Regional health, hospitals, education, infrastructure
Fortunately, the Government will continue to roll out the $4.3 billion in regional health, hospitals, education, infrastructure and skills investments announced in the 2010/11 budget.
National Capital Authority
The National Capital Authority will receive $11.9 million to ensure the financial sustainability and support heritage compliance and asset management.
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