Charities to receive grants boost to assist with GST

27/6/00

Premier Richard Court announced today that the State Government would provide a full 10 per cent increase in grants to charities which provide private social welfare services and which will have to pay the goods and services tax.
Mr Court said the 10 per cent increase would ensure that charities which had to pay the GST would not be out of pocket.
"We have been discussing this issue with the Federal Government for some time, but they would not provide financial assistance," he said.
"We were acutely aware of the impact of the GST on the bottom line of charities and have decided to provide a funding increase to ensure the services they provide are not impacted in any way.
"We are pleased to be able to increase our grants which, in the coming financial year, will see more than $2 million extra paid to charity groups, increasing to nearly $5 million in future years."
Taking into account the removal of wholesale sales tax, reduced fuel costs and other savings, many charity groups are expected to be better off overall.
Where savings from tax reform are identified in Government organisations, in non-Government schools, and in private hospitals, the Government will amend its funding accordingly.
Media contact: Justine Whittome - 9222 9475