Media Release - CSSA Welcomes the Government's Quick Action on Family Tax Benefits for Charity Workers

Catholic Social Services Australia's Executive Director, Frank Quinlan, tonight welcomed the Government's announcement that it will table legislation in the Senate next week to rectify the anomalies in legislation put in place under the previous government which would have reduced the income of low paid charitable workers with families.

Mr Quinlan said a lot of workers in the charitable sector will wake up tomorrow reassured by the news.

Family Services Minister, Jenny Macklin, and Treasurer, Wayne Swan, released a statement tonight outlining the Government's plan to restore the use of net reportable fringe benefits in income definitions for family assistance, ensuring people working in the charitable sector will not suffer a loss of family tax benefits or other family assistance payments after 1 July this year.

"We are pleased to see that the Government has recognised and is acting quickly to address the anomalies," Mr Quinlan said.

"I am sure that if these measures are reversed in legislation next week, none of our workers will be worse off.

"It is also encouraging to see the Treasurer has recognised the inordinate complexities in the tax treatment of the community sector.

"We are encouraged that the Treasurer is asking Ken Henry to review these issues and find ongoing solutions to the problem," Mr Quinlan said.

Mr Quinlan said he hopes the legislation will receive bipartisan support so the Centrelink changes can be put in place as quickly as possible to prevent any underpayments of charitable sector staff on 1 July.

Catholic Social Services Australia provides services to over a million Australians each year through its 64 member agencies in remote, regional and metropolitan Australia.

19 June 2008

CONTACT Judith Tokley 02 6285 1366 / 0408 824 306