A TAX slug that threatened MonashLink's community health services has been put on hold.
Under an Australian Tax Office ruling, MonashLink and 36 other Victorian community health centres were set to lose their charitable status - and valuable tax concessions - from today.
The peak body Victorian Healthcare Association warned the tax changes would have "disastrous" implications, including a loss of doctors and dentists, a higher tax bill and the loss of funding.
Last week, VHA chief executive Trevor Carr said the ATO had given the centres a temporary reprieve while the State Government conducted its review of its governance arrangements.
"The ATO has said if there were no significant changes, then its ruling would stand."
Health Minister Daniel Andrews said he was concerned by the impact of the tax ruling.
"Our priority is to ensure that the delivery of important services can be maintained, which is why I have also commenced a review of arrangements."
An ATO spokeswoman said the Tax Office would provide advice to the review, if requested.
"[The ATO] will advise the affected parties of their future taxation treatment once the outcomes of the review are known."
The tax ruling stemmed from a 2003 Federal Court decision, which stated a government instrumentality could not be a public benevolent institution.