There are particular worries about the future for older people who do not own their own home. Fringe Benefits Tax changes COTA is most concerned about the impact of the proposed changes to Fringe Benefits Tax as these apply to charities and the delivery of aged care and welfare services. The proposed changes will have profound effects on the operating capacity of many charitable organisations. Changes in FBT arrangements will mean reductions in employment in the sector and consequent cuts to important services. It is COTA's experience that staff in the charitable sector are generally paid less than staff in equivalent private enterprise and the public sector.
Salary packaging helps to make up some of the difference and to attract high quality staff.
COTA recommends that the proposed changes to Fringe Benefits Tax be revised so that charitable organisations will not be disadvantaged in terms of salaries paid to staff and services delivered. Copyright 1999 Council on the Ageing. All rights reserved.