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Tax deadline looms for health centresThe State Government has yet to act to resolve uncertainty surrounding the future of community health centres, which face losing their tax-exempt status at the end of June. By Kevin Balshaw - 11th June 2008 - Back to News The Member for Eastern Victoria, Philip Davis, has called on the State Government to resolve uncertainty surrounding the future operation of country community health centres before the end of June when they are due to lose their tax-exempt status.
Following a meeting with Gippsland Lakes Community Health management at Lakes Entrance, Mr Davis set out the plight of the health centres in Parliament and asked that Health Minister Daniel Andrews move quickly to remove the threat hanging over them.
Gippsland Lakes Community Health is one of all but two of the 39 Victorian community health centres affected by a Tax Office decision and Federal Court ruling that removes their status as public benevolent institutions.
Mr Davis said this would have the effect of removing their tax exemption and prevent them from offering salary packaging options that are essential for centres in country areas to recruit and retain staff.
The deadline for the decision is now the end of June, but if it proceeds it would be backdated to the end of March.
"The Minister knew about the problem years ago and could have fixed it then," Mr Davis said.
"However, we have heard very little of substance from the Government that would provide any comfort for the health centres. The Department of Human Services has indicated it has put a case on behalf of the centres to the Federal Government and begun a review of the arrangements affecting them.
"This is a convoluted approach and is not the least bit helpful as the deadline nears."
It would cost Gippsland Lakes Community Health an extra $200,000 for the current financial year and increase its $14 million a year budget by $1 million from July onwards.
The group is already short of GPs and other professionals, and the tax decision would not only make it difficult to fill vacant positions and prevent an exodus of staff but jeopardise its plans for a GP clinic at Metung.
As the chairman of the group, Jeff Wilson, has commented, this is the biggest challenge to community health centres since their formation 32 years ago.
Source: http://gippsland.com/ Published by: kevin.balshaw@parliament.vic.gov.au
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