Members of a group set up to advise the Prime Minister on issues relating to philanthropy and giving have opposed a controversial Treasury recommendation to change the current distribution rates for ancillary funds.
The non-government members of the Prime Minister’s Community Business Partnership have made a submission to the Commonwealth’s Treasury amendments to the Private Ancillary Fund Guidelines 2009 and the Public Ancillary Fund Guidelines 2011. Treasury has recommended reducing the minimum annual distribution rate of Public and Private Ancillary Funds.
“We do not believe there is a strong case for changing the currently accepted rate of 5 per cent for PAFs and 4 per cent for PuAFs,” the submission said.
“Data provided by the Australian Taxation Office shows that 56 per cent of PuAFs and 46 per cent of PAFs distribute above the minimum distribution rate. Administration costs for PuAFs are 4.7 per cent of the fund’s net assets, with PAF administration costs at 1 per cent of the fund’s net assets.”
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