Explanatory Memorandum
(Circulated by authority of the Treasurer, the Hon Peter Costello MP)Chapter 5 - Deductible gift recipients
Outline of chapter
5.1 Schedule 5 to this Bill amends the Income Tax Assessment Act 1997 (ITAA 1997) to update the lists of deductible gift recipients (DGRs).
Context of amendments
5.2 The income tax law allows taxpayers to claim income tax deductions for gifts of $2 or more to DGRs. To be a DGR, an organisation must fall within a category of organisations set out in Division 30 of the ITAA 1997, or be listed under that Division.
5.3 These amendments will assist relevant funds and organisations to attract public support for their activities.
Summary of new law
5.4 These amendments add certain organisations to the lists of DGRs.
Detailed explanation of new law
Listed deductible gift recipients
5.5 Schedule 5 lists the organisations in Table 5.1 as DGRs. [Schedule 5, items 1 to 9]
| Name of fund | Date of effect | Special conditions |
|---|---|---|
| Freedom Across Australia | 8 November 2004 | The gift must be made before 8 November 2006 |
| Rotary Leadership Victoria Australian Embassy for Timor-Leste Fund Limited | 8 November 2004 | The gift must be made before 8 November 2006 |
| National Police Memorial | 8 November 2004 | The gift must be made before 8 November 2006 |
| Page Research Centre Limited | 13 January 2005 | None |
| Russian Welfare Aid to Russia Fund | 23 December 2004 | The gift must be made before 23 December 2006 |
5.6 Freedom Across Australia is a medically supervised holiday travel organisation that provides low cost holidays within Australia for disabled Australians, including sufferers of cerebral palsy, brain damage, spinal injury, or severe mental disability. [Schedule 5, items 2 and 5]
5.7 The Rotary Leadership Victoria Australian Embassy for Timor-Leste Fund is established by Rotary in Australia and the Williamson Community Leadership Foundation, to construct an embassy for East Timor in Canberra on land provided by the Government. On completion, the embassy will be donated to the Government of East Timor. [Schedule 5, items 3 and 8]
5.8 The National Police Memorial (Company) is established for the construction of a national police memorial in Kings Park in Canberra, dedicated to Australian police officers killed in the line of duty. The memorial, the first of its kind in Australia, will serve as an appropriate memorial to focus community understanding of the important work of Australian Police in the community. [Schedule 5, items 4 and 6]
5.9 The Page Research Centre Limited was established to undertake research and develop policy aimed at enhancing the prosperity of regional Australia. The centre's research focuses on issues that improve the wellbeing of regional and rural Australia. [Schedule 5, items 1 and 7]
5.10 The Russian Welfare Aid to Russia Fund was established to provide support for children, and their families, who are victims of the terrorist atrocities in Beslan, Russia. [Schedule 5, items 3 and 9]
Application and transitional provisions
5.11 The amendments to list the organisations in Table 5.1 apply from the dates of effect shown in that table. [Schedule 5, items 1 to 9]