TD 2025/D3 draft sets out the Commissioner of Taxation's view on when a private or public ancillary fund is considered to provide a 'benefit' under the Private Ancillary Fund Guidelines 2019 and Public Ancillary Fund Guidelines 2022.
Comments on this draft determination are open until 30 January 2026. Follow the instructions in paragraph 55 of the draft to submit your feedback.
The determination clarifies the meaning of:
- 'provision of … benefits' in subsection 15(4), which relates to meeting minimum annual distribution requirements to eligible deductible gift recipients (DGRs)
- 'provide any benefit, directly or indirectly' in subsection 22(3), which prohibits benefits to related entities.
The draft tax determination does not change the ATO's view on the meaning of ‘benefit’ in these sections.
The determination aims to give trustees greater certainty and guidance to ensure compliance and uphold the integrity of concessional treatment for deductible gifts, ensuring ancillary funds operate solely for philanthropic purposes and in support of eligible DGRs.
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