A submission to the Australian Government Treasury
re  Exposure Draft, “In-Australia” Special Conditions for tax-concession entities
from
Africa Inland Mission International (Australia) Inc.
PO Box 328 GOSFORD, NSW 2250, Australia, T: (02) 4322 4777, W: www.aimint.org 

10 August 2011

Manager, Philanthropy and Exemptions Unit
The Treasury, Langton Cres, PARKES ACT 2600
E: NFPReform@ Treasury.gov.au

Thank you for the opportunity to respond to the above Exposure Draft. This organisation wishes to express its concerns at the proposed changes to the tax law and possible significant detrimental impact on currently tax-exempt charitable entities including this organisation.   It is likely other co-members of Missions Interlink will also be adversely impacted.

This organisation has been operating in Australia since 1916, following the foundation of Africa Inland Mission in other parts of the world from 1895. Our primary role in Australia is to procure people, prayer and financial resources for the ministry of Africa Inland Mission International in Africa and among African peoples in other parts of the world. 

We currently have Australian people involved in both short-term (up to 12 months) and long-term service in Africa in roles including medical work, evangelistic outreach, teaching, and community development. These people are volunteers supported financially primarily from Australian individuals and churches making payments through Africa Inland Mission Int. (Australia) Inc. We also currently provide funds for AIM-approved projects to assist the African church in providing emergency relief, education, medical work and other outreach ministries.

It seems our entire existence and operation could be jeopardised by the proposed legislation.  

Loss of “income –tax exempt charitable entity” status under 50-50 (d) of the Income Tax Assessment Act as a member of  the Australian Evangelical Alliance Inc (Missions Interlink) could mean this organisation may be unable to operate.  It would discourage donations from supporting churches and other organisations, as they would face losing their income-tax exempt charitable status.

The new legislation seems to be pre-empting the new charities commission. Under such an authority I would like to see tax concessions, as well as regulation, for funds sent overseas. Such provisions are received by our sister Africa Inland Mission International organisations in other parts of the world. In the United Kingdom this includes a gift to the charity of income-tax paid by donors in the Gift Aid scheme. In the USA all gifts are tax-deductible for donors.  

The new legislation is unclear about whether existing entities will retain their existing status, and also on how any new such entity can be established. This organisation seeks clarity that it will retain it’s charitable income-tax exempt status. We seek clarity on how future income-tax exempt charitable bodies can be established.  

Thank you for your consideration.
L Lesleighter, CEO/ Public Officer