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SVdP challenges Govt to keep promise on GST compensation

The St Vincent de Paul Society in Queensland has called on the re-elected Coalition Government to honour its promise on GST compensation for charities.

The Catholic Leader reports that Society said the Government had promised it would compensate charities for input tax credits lost when charities provide needy families with vouchers for such expenses as buying clothing or paying electricity bills.

The tax applies when the client uses the voucher to pay for items like those and some food and other lines which are not GST exempt.

It is effectively the charity that has paid this tax, according to the tax office, but it has been paid by the purchaser.

SVdP Queensland President Tim O'Connor said that they money donated to alleviate suffering in the community was instead going into Government coffers.

"John Howard, as the re-elected Prime Minister, has the opportunity to reduce of burden of the GST from charitable organisations that are helping the needy," he said.

Catholic Leader