Tax Laws Amendment (Incentivising Food Donations to Charitable Organisations) Bill 2024

High-Level Summary
The bill proposes to amend tax laws to introduce a food donations tax offset for companies, incentivizing the donation of food to registered food charities to combat food insecurity and reduce food waste in Australia.

Summary
The Tax Laws Amendment (Incentivising Food Donations to Charitable Organisations) Bill 2024 amends the Income Tax Assessment Act 1997 and the Income Tax (Transitional Provisions) Act 1997 by introducing a food donations tax offset for companies deemed constitutional corporations. This offset applies to expenditure incurred in undertaking food donations activities for registered food charities. Companies with an aggregated turnover of less than $20 million can claim a refundable tax offset, whereas companies with larger turnovers are eligible for a non-refundable offset. The offset is capped at the lower of $5 million or a specified percentage of the expenditure, which varies based on the company's turnover. The bill includes integrity measures to prevent abuse and requires an independent review after three years to assess the potential continuation of the incentive.

Argument For
Normative Bases
  1. Utilitarian Ground Truth
  2. Environmentalism

The bill addresses both food insecurity and food wastage, two pressing issues in Australia. By incentivizing corporations to donate edible food that would otherwise be wasted, the bill aims to maximize overall well-being by providing essential support to those in need [Judgment]. The environmental benefits of reducing food waste further bolster its utility, as less food waste means lower environmental impact, aligning with sustainability goals.

This tax incentive also provides a practical and immediate solution to food stress, helping charities meet the growing demand for food assistance without waiting for long-term policy changes.


Argument Against
Normative Bases
  1. Propertarianism

From a propertarian perspective, government intervention in the form of tax incentives could be seen as an unnecessary intrusion into the free market. Companies should have the autonomy to decide how to manage their resources, and a tax offset may distort market dynamics by encouraging behavior that the market does not naturally sustain [Judgment].

Moreover, there's a concern about the potential for misuse or manipulation of the tax offset, despite the integrity measures included in the bill. Ensuring compliance and monitoring could result in additional administrative burdens and costs.


Date:

2024-07-02

Status:

Before Senate

Sponsor:

SMITH, Sen Dean

Portfolio:

Unspecified

Categories:

Taxation, Social Support / Welfare, Climate Change / Environment

Timeline:
02/07/2024

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