Explanatory Memorandum(Circulated by the authority of the Treasurer, the Hon Wayne Swan 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 list of the deductible gift recipients (DGRs) to include four new entities and to extend the time period of three organisations currently listed in the ITAA 1997.
Context of amendments
5.2 The income tax law allows taxpayers who make gifts of $2 or more to DGRs to claim income tax deductions. To be a DGR, an organisation must fall within one of the general categories set out in Division 30 of the ITAA 1997, or be listed by name under that Division.
5.3 DGR status assists eligible funds and organisations to attract public support for their activities.
Summary of new law
5.4 The amendments add four organisations to the list of specifically listed DGRs and extend the time period for which deductions are allowed for gifts made to three organisations. Gifts of $2 or more that are made to organisations during their period of specific listing, are tax deductible.
Detailed explanation of new law
5.5 Schedule 5 allows deductions for gifts to the organisations listed in Table 5.1. [ Schedule 5, items 1, 3, 4 and 7 ]
|Name of Fund||Date of Effect||Special Conditions|
|The Australasian College for Emergency Medicine||3 February 2009.||The gift must be made after 2 February 2009.|
|Grattan Institute||5 March 2009.||The gift must be made after 4 March 2009 and before 5 March 2011.|
|ACT Region Crime Stoppers Limited||13 February 2009.||The gift must be made after 12 February 2009.|
|PWR Melbourne 2009 Limited||3 February 2009.||The gift must be made after 2 February 2009 and before 1 January 2010.|
5.6 The Grattan Institute is a policy research institute that will be established at the University of Melbourne. The Institute is being established as a research body providing an independent voice in Australian public policy debate and will not be aligned with any political movement. The Institute will focus on the major challenges and opportunities facing Australia as a liberal democracy in a globalised economy.
5.7 The Australasian College for Emergency Medicine is the administrative institution in Australia and New Zealand for the practice of emergency medicine. The College is distinguished as an educational institution for the teaching and accreditation of physicians in the speciality of emergency medicine. The College's specialist education program in emergency medicine aims to improve standards and training in emergency departments in hospital systems across Australia and New Zealand.
5.8 PWR Melbourne 2009 Limited (The Parliament of the World's Religions) is an international forum which aims to promote interfaith interaction and to encourage peace and understanding between different faiths and people with no faith. The Parliament is held every five years in different locations around the world. The Parliament's conference in Melbourne in 2009 will be specifically listed as a DGR in the tax law until 31 December 2009.
5.9 Crime Stoppers is a crime information operation, which enables anyone with information about any crime and who wishes to remain anonymous to pass that information to Police. Crime Stoppers operates in all states and territories of Australia. ACT Region Crime Stoppers Limited is a partnership between the community, media and police. Like all Crime Stoppers programs, ACT Region Crime Stoppers Limited is a program designed to assist in the detection, and hence the reduction of crime.
5.10 Schedule 5 extends the period for which deductions are allowed for gifts to the organisation listed in Table 5.2. [ Schedule 5, items 2, 5 and 6 ]
|Name of Fund||Date of Effect||Special Conditions|
|Yachad Accelerated Learning Project Limited||1 July 2008.||The gift must be made after 30 June 2008 and before 1 July 2009.|
|St George's Cathedral Restoration Fund||31 December 2007.||The gift must be made after 30 December 2007 and before 1 January 2011.|
|Bunbury Diocese Cathedral Rebuilding Fund||19 December 2008.||The gift must be made after 18 December 2008 and before 19 December 2010.|
5.11 Yachad Accelerated Learning Project Limited is a program of educational intervention aimed at raising the scholastic achievements of students in remote and rural locations in Australia. Under Yachad, Israeli educators work with Indigenous communities and their local leaders, as well as school principals and their staff, to combat patterns of educational disadvantage.
5.12 The Bunbury Diocese Cathedral Rebuilding Fund was established to rebuild the St. Patrick's Cathedral in Bunbury, Western Australia which was destroyed by a tornado in 2005. Extending the period of DGR status of the Fund recognises the heritage significance of the St. Patrick's Cathedral.
5.13 St. George's Cathedral Restoration Fund is undertaking the restoration of the St. George's Cathedral precinct which involves urgent repairs and conservation work to the Cathedral, the Burt Memorial Hall and the Deanery. The St. George's Cathedral precinct has significant historical and heritage significance and has been permanently listed on the Western Australia Register of Heritage since 1995.
Application and transitional provisions
5.14 The amendments to list the organisations listed in Table 5.1 and Table 5.2 apply from the dates of effect shown in those tables.
5.15 A number of changes have been made to update the index to include the new entities. [ Schedule 5, items 8, 9, 11 and 12 ]