The introduction of the GST under the New Tax System led to Gosford City Council and many of its local voluntary organisations to rethink the relationship they had had up until that time.
Council’s community facilities were being managed largely by these volunteer organisations. They had been granted Delegated Authority by Council under the Local Government Act. Effectively these groups had become Committees of Council.
“The introduction of the GST, by definition, brought the financial operations of these committees under Council’s responsibilities with regard to the Tax System,” said Council’s Manager Community Development, John Van Esveld. “Council wanted to put in place a system that would meet both the tax obligations of Council and voluntary organisations, and for these organisations to maintain as much autonomy as possible.”
Prior to the introduction of the GST, Council staff from Community Development, Recreation, Property and Legal areas consulted widely with some 70 community organisations. Agreement was reached that the best approach for the voluntary organisations was for them to become incorporated entities and enter into formal agreements to occupy Council facilities.
“For some organisations this meant the severing of long term ‘informal’ ties with Council, but it was believed that any disadvantages were outweighed by a number of benefits,” John Van Esveld. “The formal agreements allowed greater protection and security of tenure over community buildings than previously existed. All, apart from some four or five organisations, have now completed this process and are continuing to provide valuable community services with greater security and protection than was previously the case, whilst also dealing well with complicated taxation matters.”
For further information, contact John Van Esveld on (02) 4325 8348.
