[AdelaideNow] CFS Tax-free status removed by ATO

[Zippy]

Country fire volunteers left burnt by tax ruling
AdelaideNow 08 June 2010

COUNTRY fire brigades are set to lose out because the Tax Office has withdrawn their tax-free status, ruling that the volunteer organisations do not relieve "suffering, distress, misfortune . . . or helplessness" in their role.

The Australian Tax Office says brigades are not "public benevolent institutions".

The Country Fire Service Volunteers Association has branded the decision "petty and small minded" .

It added Federal Government changes to protect them from the ruling still left volunteers out of pocket. The changes mean brigades cannot employ helpers for cleaning duty or for paperwork, nor can they use tax breaks of up to $7000 per person to make the salary packages more attractive.

" They have been gunning for this for two years," association executive director Wendy Shirley said.

The ruling will not affect donations because the Federal Government created a loophole to thwart the ATO when it tried to make donations liable to tax in February.

Ms Shirley said the administrative burden for government paperwork like station audits fell on volunteers but brigades were increasingly keen on getting paid staff to help ease the workload.

South Australian Senator Nick Xenophon has written to the Commissioner of Taxation to complain that the ruling - that brigades were not charities because they did not relieve "poverty, sickness, suffering, distress, misfortune, disability or helplessness" - is illogical because all of these things could result in bushfires if firefighters didn't volunteer.

[Darren]

Another thing to add to the list when I wonder why I still bother....

[jaff]

Government EPIC FAIL....so FO!!!!!!!!!!!!!!!!!!!! twats.

[THE RANGER]

Recently we attended a MVA, I spent 60 minutes, supporting the patients neck,who definitely in a position of HELPLESSNES,reassuring him to lessen his DISTRESS, while our fellow CFS, members were removing the roof of the car, to remove the patient to lessen their SUFFERING, the combined effort of the SAAS & CFS, by carefully removing the patient using neck brace and backboard to reduce the chance of DISABILITY

And they say the CFS "did not relieve "poverty, sickness, suffering, distress, misfortune, disability or helplessness"

This can in part, be applied to nearly every call out, wether rescuing trapped animals,protecting assets, MVA

[brenjoe]

what a joke! maybe we need to be paid to py tax...

[Subi]

what a joke! maybe we need to be paid to py tax...

just like GST, more tranactions will go underground, and not declared. Then they won't get any of the tax

[bajdas]

Unless I am reading this wrong, this affects if the brigade is paying a person to do work ! Is this happening alot for admin work or other duties ?

"....Ms Shirley said the administrative burden for government paperwork like station audits fell on volunteers but brigades were increasingly keen on getting paid staff to help ease the workload...."

[Darren]

I know some Group Officers get honorariums so that might need to change.

[6739264]

Recently we attended a MVA, I spent 60 minutes, supporting the patients neck...

How do you support just the neck? Is it like an awesome choke hold?

[uniden]

Don`t see a problem here. Volunteers by definition don`t get paid so not a lot will change..

[crashndash]

i actually have no problem with the ATOs ruling......last time I looked we were an Emergency Service...not a charity. I actually object to the CFSVA projecting me as a needy charity case and playing the poor hard done by volunteer all the time

[Darren]

Having done some more research I think you will find its more to do with brigades own bank accounts...not your wage, which you clearly don't get!!

We shouldn't have to fundraise anyway, so it seems the ATO have a point, but I don't think its fair that none of your efforts are tax deductible, but I don't think anyone bothers claiming.

[bajdas]

Having done some more research I think you will find its more to do with brigades own bank accounts...not your wage, which you clearly don't get!!

We shouldn't have to fundraise anyway, so it seems the ATO have a point,.....

WOW, if a brigades fund-raisinbg account is enough to have tax implications (I assume interest) then it is huge.

But then Burnside CFS would have been affected while they raised funds for the Volvo Truck..

I was picking up this quote from the posting above "...Ms Shirley said the administrative burden for government paperwork like station audits fell on volunteers but brigades were increasingly keen on getting paid staff to help ease the workload...."

[THE RANGER]

Recently we attended a MVA, I spent 60 minutes, supporting the patients neck...

How do you support just the neck? Is it like an awesome choke hold?

I said neck not the throat, maybe a first aid course may help you understand , seriously I had some guidance from those SAAS dudes.

My point was to highlight the fact that the ATO, and other govt departments have no idea of what we actually do.

[boredmatrix]

I was picking up this quote from the posting above "...Ms Shirley said the administrative burden for government paperwork like station audits fell on volunteers but brigades were increasingly keen on getting paid staff to help ease the workload...."

so volunteers stop doing that sort of work - CFS and ultimately SAFECOM will have a dummy spit - but hey - as long as you've got appliances crewed and on the road and attending training - isn't that what the public wants/needs?

Government accountability should not be the responsibility of the volunteers who deliver the front-line service.

[kat]

So, I may have this wrong but - this will effect those "volunteers" out there who receive an "honorarium"? I won't be devastated if someone being paid $2000 a year to compile and distribute 4 sets of minutes is taxed on it.

[Darius]

Advice I received was there is no affect at all on any group or brigade (not even any volunteer receiving an honourium). This is apparently about losing "public benevolent institution" (PBI!) status which is all about salary sacrificing and fringe benefits tax. CFSHQ lost this a long time ago but now the CFSVA will lose it too apparently.

[crashndash]

Darius if that is the case, then the article in the paper is a shameful blight on the CFSVA. How dare they use us, the Brigades, and the public support for us to push their own financial gain....truly ordinary

Vote 1: No confidence in self seeking (so-called) representatives

[Darius]

that's bit harsh I think, don't forget "we" are the CFSVA. I think (my interpretation here) it just means the CFSVA will either "cost" more to run or those paid will lose benefits they have had until now.

[crashndash]

Darius, you're absolutely correct in your interpretation, in fact it will probably mean both of those things.......my (strong) objection is with the article that tries to use US and OUR work to feather THEIR nest. Go back and read the article again, it's a huge heartstring tug on the "poor volunteers" theme.

[mengcfs]

So, I may have this wrong but - this will effect those "volunteers" out there who receive an "honorarium"? I won't be devastated if someone being paid $2000 a year to compile and distribute 4 sets of minutes is taxed on it.

*insert thumbs up* LIKE!

[rescue5271]

Did we not remove HONORARIUMS to members who took uo positions years ago? I know our group and region did about 5/6 years ago......

[Darren]

What they don't know Bill 

[rescue5271]

So true Darren.......

[Alan J]

Tax Office website is interesting but not exactly easy to get simple info from.

http://www.ato.gov.au/nonprofit/content.asp?doc=/content/00236973.htm comments that
"Recent legal cases have led us to consider that volunteer bushfire brigades
do not meet the strict public benevolent institution (PBI) criteria, so we cannot
currently endorse individual bushfire brigades for DGR status as PBIs."

Must have been interesting cases.
Also, the ATO definition of a PBI is pretty restrictive, 60%+ of activity must be
dedicated to relieving suffering or etc. Maybe our prevention, training & other
activities count against us ?  Search the ATO website on Taxation Ruling TR 2003/5 if
you are interested in details, or amputate your own arm with a blunt pocket-knife if
you want to do something more enjoyable.


http://www.ato.gov.au/nonprofit/content.asp?doc=/content/00240399.htm
The Fed Govt is proposing: "Deductible gift recipient (DGR) support will be widened to
all entities providing volunteer-based, state-regulated emergency services, including
volunteer fire brigades (VFBs). The measure also extends DGR status to all state and
territory government bodies that coordinate VFBs and state emergency services that are
not already DGRs.  Individual brigades will be able to establish a public fund to
receive DGR support, or collect donations through a centralised state public fund.
The changes are planned to have effect from Royal Assent."

Nothing about PBI.
I note that there are four deductible gift recipient (DGR) registers, so maybe
volunteer fire brigades would qualify for one of the other 3 anyway.

All that of course is IF the senate passes whatever legislation it happens
to be bundled with on the day... A Good Thing in my view, but by no means certain
to happen. The loop-hole isn't there yet, & the Senate has been less-than-helpful of
late...

cheers