The first few months of 2010 have been dominated by the potential impact of the Henry Review into the Australian taxation system and the response from the Federal Government. With both now in the public arena it appears that the major changes to be adopted at this stage relate largely to company tax rates. While we are pleased that fringe benefits tax exemptions for the charitable sector have been maintained we are disappointed that limits are not being indexed to inflation. Under current arrangements the benefit is being eroded over time and this will undermine the competitiveness of our sector in terms of salaries and wages.

A more important piece of work from our perspective has been the Productivity Commission review of the charitable sector. Its recommendations to simplify the incorporation processes and reporting for not for profit organisations as well as the establishment of a register for charities are welcomed. The charitable sector and its impact is largely misunderstood by the broader community and we believe the recommendations of the Productivity Commission if adopted, will greatly improve the understanding of our work.

Trade Unions have recently lodged a claim with Fair Work Australia seeking to increase the wage rates for the social and community services sector across Australia. In broad terms we support this claim but note that the capacity to meet any increases will depend almost entirely on a commensurate increase in funding from both the state and federal governments. We believe a decision will be handed down later this year.

One of the most pleasing aspects of Centacare is that regardless of the environment from a political or social view, our various services through management and staff simply get on with the job. This edition of “Footprints” highlights the ways in which this is happening. I trust you will enjoy the many articles that feature the vital work of Centacare.