2018-19 Federal Budget Report: Not-For-Profits and other tax exempt entities

Minimal taxation announcements were made for Not-For-Profits (NFP’s) and other exempt entities. However, record levels of investment in various health-related measures were announced to guarantee essential services.
Cricket was a winner, after some recent large-scale “controversies’.

What was announced

  • Disallowing a tax deduction for interest in repayment of a concessional loan
  • Tax exemption for the International Cricket Council (ICC)
  • GST, fuel, and alcohol and other indirect tax concession for diplomatic and consular representatives

Disallowing interest deductions

From 8 May 2018, formerly exempt entities that are now taxable, will be denied a tax deduction for interest repayments on concessional loans entered into whilst they were exempt.

ICC tax exemption

The Government will provide a five- year income tax exemption to a subsidiary of the International Cricket Council (ICC) for the ICC World Twenty20 to be held in Australia in 2020. This exemption will apply from 1 July 2018 to 30 June 2023.

The subsidiary will also be provided an exemption from interest, dividend and royalty withholding tax liabilities for the same period.

Indirect tax concessions for diplomatic and consular representatives

The Government has granted or extended access to refunds of indirect tax, including GST, fuel and alcohol taxes, including new access to the diplomatic and consular representations of Cote d’Ivoire, Guatemala, Costa Rica and Kazakhstan in Australia.
Each of these changes has effect from a time specified by the Minister for Foreign Affairs.
Consistent with international practice, these concessions are reciprocal and reviewed periodically.


Moore Stephens Comment