• Introduction

    Attention

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    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    The Tax Laws Amendment (2009 Measures No 4) Act 2009 was granted Royal Assent on 18 September 2009. Schedule 2 of that Act contained amendments to improve the integrity of PPFs.

    The amendments to the Income Tax Assessment Act 1997 (ITAA 1997) and the Taxation Administration Act 1953 (TAA) took effect on 1 October 2009 and amendments to the A New Tax System (Australian Business Number) Act 1999 took effect on 1 January 2010.

    The amendments, among other things have:

    • re-named prescribed private funds (PPFs) as PAFs
    • given the Treasurer the power to make legislative guidelines about the establishment and maintenance of PAFs.

    For a PAF to be entitled to endorsement as a deductible gift recipient (DGR), section 30-125 Entitlement to endorsement in the ITAA 1997 requires that the fund and the trustees comply with the rules in the PAF guidelines.

    Private ancillary fund guidelines 2009

    The Private ancillary fund guidelines 2009 (PAF guidelines), a legislative instrument formulated by the Minister, took effect on 1 October 2009.

    The PAF guidelines set out the rules PAFs and the trustees must comply with if the funds are to be, or are to remain, endorsed as a DGR. They also set out the amount of the administrative penalty, or how to work out the amount of the administrative penalty.

    The rules supplement or extend those in tax law and address such issues as distribution, valuation, accounts, and documents that a trustee may have to provide to the Commissioner. They also include transitional rules for former PPFs.

    Further Information

    The PAF guidelines are available on the Federal Register of Legislative Instruments website at www.frli.gov.au

    End of further information
    Last modified: 01 Nov 2010QC 23525