‘MONEY POURING OUT OF ITS EARS’: ON THE TAXATION OF REALLY PROFITABLE NON-PROFIT ORGANISATIONS IN AUSTRALIA

Under current law Australia appears to be a tax haven for certain non-governmental institutions. Millions of ordinary business income may go untaxed and the deductibility for donations is unlimited – both are very generous tax measures in an international context. The basic problems of most Australian non-profit organisations are not taxation; it is their non-profit status and lack of funds. Anybody interested in the non-governmental sector should be willing to face the question: What is an equitable tax treatment? The short-term tactic of ducking the question may not be the best or most beneficial long-term strategy.