Tax system changed to protect charity workers

Updated June 20, 2008 08:01:10

The Australian Government will introduce an amendment next week to stop tax changes penalising low income earners working in charities or the not-for-profit sector.

In 2006 the previous government introduced changes to the way income is calculated for Fringe Benefits Tax.

The changes, however, would have left some charity and not-for-profit workers up to $AU100 a week worse off.

The government wants to reverse the measure by introducing an amendment in the Senate on Monday, and the Treasurer Wayne Swan is expecting Opposition support.

"It's imperative that it goes through quickly," Mr Swan said.

The Opposition's Tony Abbott says it's likely to be passed.

"Obviously we'll have to look at detail," he said.

The government's also asked a review of taxation to look at simplifying the fringe benefits system.

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