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  • Finalised ruling – 'In Australia' condition

    Taxation Ruling TR 2019/6 Income tax: the ‘in Australia’ requirement for certain deductible gift recipients and income tax exempt entities is now available.

    Taxation Ruling TR 2019/6 sets out the Commissioner’s view on what the phrase ‘in Australia’ means where it is used in Divisions 30 and 50 of the Income Tax Assessment Act 1997. Those Divisions set out rules for working out whether certain funds, authorities and institutions are eligible to be Deductible Gift Recipients (DGR) and whether the income of certain NFPs is tax exempt.

    The DGR 'in Australia' condition refers to the special condition that NFPs must be in Australia to be entitled to DGR endorsement. The ruling provides examples of when an entity:

    • is established or legally recognised in Australia, and
    • makes operational or strategic decisions mainly in Australia.

    The 'in Australia' condition for exempt entities refers to the special conditions that certain NFPs need to meet in order to be tax exempt. The ruling provides examples of how an entity:

    • meets the physical presence requirement, and
    • demonstrates that it incurs expenditure and pursues objectives principally in Australia.

    The finalised ruling is consistent with our guidance published in Draft Taxation Ruling TR 2018/D1 in July 2018.

    We consulted with key NFP stakeholders, including the NFP Stewardship Group, to develop public guidance that includes contemporary and practical examples that makes it easier for users to understand and apply the law in practice.

    See also:

    Last modified: 18 Dec 2019QC 61027