Issues of Interest - Detailed View
Relinquishment of Brigade ABN’s
Much debate has arisen over the relinquishment of Brigade ABN’s and for brigades to operate under the CFA ABN. When the GST legislation came into effect many years ago, the CFA advised brigades to register with the Australian Taxation Office (ATO) and obtain their own Australian Business Number (ABN).
This position has now changed and the CFA intends to have all brigades operate under the CFA ABN.
In June 2007, the CFA Board resolved that all brigades must operate under the CFA ABN by the end of June 2008. In July CFA reiterated this decision. It is of concern that the CFA did not choose to consult with the Volunteer Associations prior to or immediately after the decision was taken to change their position on the ABN.
It has been the position of VFBV, VRFBA and VUFBA that it is a brigade decision whether or not to surrender their ABN and operate under the CFA ABN - the ATO is still of the view that brigades can have their own ABN.
During the Brigade Financial Management Project, the CFA discovered examples of some inadvertent errors and/or omissions in some brigade BAS returns and worked with those brigades and the ATO to rectify the situation.
Early in 2007, the CFA sought the support of VFBV to a program of actively encouraging brigades to surrender their ABN's and operate under the CFA ABN. VFBV agreed to this proposition but still maintained that the final decision rested with the brigades.
Brigades should be aware that by operating under the CFA ABN, brigade members have the legal protection of the CFA for unintentional errors or omissions in their financial transactions and BAS details. Brigades operating under a brigade ABN do not have the same level of protection.
Our position regarding ABN’s has not changed and VFBV will advise of any further information as it comes to hand.
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