CHARITABLE HOSPITALS WELCOME DEMOCRATS STANCE ON FBT
The Chairperson of the Church and Charitable Private Hospitals Association Mr. Stephen Roberts today welcomed the announcement late yesterday by the Democrats Leader, Senator Meg Lees that she had written to the Treasurer to announce the Democrat’s opposition to the proposed cap of $17,000 on FBT exemptions for charities. The Democrats have closely considered this issue over an extended period of time and we welcome their informed decision to reject the FBT cap proposed by the Government. Having done their homework the Democrats are aware that charities are already adversely affected by the Government’s tax reform agenda. We hope the ALP will be as diligent as the Democrats in talking to charities to understand the consequences of the FBT proposals, Mr. Roberts said. FBT has been used responsibly by our members and it has helped many hospitals, particularly small rural hospitals, to continue to operate, he said. Already we are having to introduce expensive tax collection systems for the GST. As charities and healthcare providers our services are provided GST-free yet we will have to account for every transaction and engage in an expensive merry-go-round of paying then recouping GST. We welcome the suggestion by the Democrats for an inquiry into the tax treatment of charities. Until now the Government’s tax agenda and competition policies have not considered the impacts these reforms make on our ability to provide community-spirited services, said Mr. Roberts.