The federal government has introduced a new budget proposal that aims to change the tax credit rules for non-profit organizations (NPOs) running educational institutions.
Under the new plan, these NPOs will only be able to receive a tax credit of up to 80 percent if they charge fees to students. Currently, they can claim a 100 percent tax credit.
The government believes this change is necessary to prevent the misuse of tax credits by some schools and colleges. By reducing the tax credit to 80 percent, the government aims to ensure that the benefits are only available to those institutions that genuinely operate on a non-profit basis and support the community.
The proposal is intended to make sure that the tax credit system is fair and not exploited by educational institutions that charge students and still claim the full tax benefits.
Read more: Federal Budget 2024-25 Key Points
