Australia: KPMG comments on proposed food donation tax offset legislation
KPMG tax professionals submitted a document with comments, generally supporting the core features of the legislation, but made some recommendations.
September 5, 2024
New legislation introduced July 2, 2024, proposes a food donation tax offset for companies incurring expenses related to food donation activities for registered food charities. The Senate Economics Legislation Committee is set to report on the bill by November 15, 2024, with submissions of comments due by August 20, 2024.
In response, KPMG tax professionals submitted a document with comments, generally supporting the core features of the legislation, but recommending the following:
- Expansion of the availability of the offset to trusts and partnerships (rather than only companies), so that most small businesses in the agricultural sector can claim the offset
- Increasing the $50 million* aggregated turnover threshold to allow for all businesses classified as medium sized businesses (defined by the ATO as turnover of between $10 million and $250 million) to be eligible for the 40% rate
- Extending qualified recipients to include public benevolent institutions (not just charities that advance social or public welfare)
*$=Australian dollar