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  • Minimum annual distribution requirements

    Each financial year, public ancillary funds must distribute at least 4% of the market value of their net assets (as at the end of the previous financial year). A newly established fund is not required to make a distribution in its first four years of operation.

    The fund must distribute at least $8,800 (or the remainder of the fund if that is worth less than $8,800) during that financial year, if both of the following applies:

    • the 4% is less than $8,800
    • any of the expenses of the fund in relation to that financial year are paid directly or indirectly from the fund's assets or income.

    A distribution includes the provision of money, property or benefits.

    Penalties may apply for not meeting the minimum annual distribution requirements, but funds can apply to reduce the minimum annual distribution rate.

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    How to confirm endorsement details

    Public AFs endorsed as DGRs should receive a notice of Endorsement as a deductible gift recipient stating:

    Endorsement as a deductible gift recipient under Subdivision 30-BA of the Income Tax Assessment Act 1997 is provided as detailed below.

    You can also confirm your endorsement details by visiting the ABR look for the term 'Item 2' in the 'Deductible gift recipient status' section of the 'Current details' screen.

    You should phone us on 1300 130 248 if any of the following apply:

    • you need to change your fund's contact details
    • the name of the fund on the notice or the ABR is incorrect
    • your fund is no longer entitled to endorsement
    • you cannot confirm your fund's DGR endorsement as explained above and you believe that your fund should be endorsed, including where    
      • your fund's notice of endorsement states 'Endorsement as a deductible gift recipient under Subdivision 30-BA of the Income Tax Assessment Act 1997 is provided for the operation of a fund, authority or institution'
       
    • the ABR indicates that your fund is covered by 'item 2', but your fund is listed as a fund, authority or institution operated by another entity.

    When you phone us, you will need to meet proof of identity requirements, including quoting your organisation's ABN.

    Once we confirm your fund's details, we will send you a replacement notice of endorsement if required. The 'Endorsement date of effect' on the replacement notice will show the date from which your fund was entitled to endorsement. The date will not be changed to 1 January 2012 as a result of the changes to public AF DGR category.

    Closing your fund

    If you choose to wind up your fund, you will need to provide us with a final audit report which includes financial statements indicating a zero balance in the fund.

      Last modified: 23 Jun 2020QC 25252