Explanatory Memorandum
(Circulated by the authority of the Deputy Prime Minister and Treasurer, the Hon Wayne Swan MP)Chapter 7 - Deductible gift recipients
Outline of chapter
7.1 Schedule 6 to this Bill amends the Income Tax Assessment Act 1997 (ITAA 1997) to update the list of deductible gift recipients (DGRs) to make two entities deductible gift recipients, extend the period of listing of one entity and change the name of another entity.
7.2 All references to legislative provisions in this chapter are references to the ITAA 1997.
Context of amendments
7.3 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 in that Division.
7.4 DGR status assists eligible funds and organisations to attract public support for their activities.
Summary of new law
7.5 These amendments add One Laptop Per Child Australia Ltd (ABN 34 141 060 586) and the Mary MacKillop Canonisation Gift Fund (ABN 32 551 221 563) to the list of specifically listed DGRs, extend the period of listing of the Xanana Vocational Education Trust (ABN 31 516 142 700) until 30 December 2010 and change the name of a currently listed DGR from 'The Clontarf Foundation Inc.' to 'Clontarf Foundation' (ABN 77 131 909 405).
Detailed explanation of new law
One Laptop per Child Australia Ltd
7.6 Schedule 6 allows taxpayers to claim a deduction for gifts made to One Laptop per Child Australia Ltd after 26 May 2010 and before 1 July 2012. [Schedule 6, item 2, item 2.2.38 in the table in subsection 30-25(2)]
7.7 One Laptop per Child Australia Ltd was established in 2008 and aims to improve the lives of Indigenous children living in disadvantaged communities in rural and remote Australia. It is working to achieve this goal by giving remote Indigenous school children laptops. The laptops are designed to be durable, energy efficient and appropriate for children.
7.8 The listing is conditional on the laptops provided under the scheme remaining school property.
Mary MacKillop Canonisation Gift Fund
7.9 Schedule 6 allows taxpayers to claim a deduction for gifts made to the Mary MacKillop Canonisation Gift Fund after 4 August 2010 and before 1 July 2011. [Schedule 6, item 4, item 13.2.18 in the table in section 30-105]
7.10 The Gift Fund was established to raise funds in relation to the canonisation of Mary MacKillop in Rome on 17 October 2010 and related events in Australia. The canonisation of Mary MacKillop is a unique event as she is Australia's first recognised saint.
Xanana Vocational Educational Trust
7.11 Schedule 6 also extends the period of the specific listing of the Xanana Vocational Educational Trust. Donors will be able to claim a tax deduction in respect of a gift made after 20 July 2005 and before 1 January 2011. [Schedule 6, item 3, item 9.2.17 in the table in subsection 30-80(2)]
Clontarf Foundation
7.12 Schedule 6 changes the name of 'The Clontarf Foundation Inc.' to 'Clontarf Foundation'. [Schedule 6, item 1, item 2.2.32 in the table in subsection 30-25(2]
Application and transitional provisions
7.13 The change to the name of 'The Clontarf Foundation Inc.' has effect from 1 April 2010. The addition of One Laptop per Child Australia Ltd and the Mary MacKillop Canonisation Gift Fund, and the extension to the listing of Xanana Vocational Educational Trust have effect for gifts made after and before the dates outlined in paragraphs 7.6 and 7.11.
Consequential amendments
7.14 Changes have been made to update the index in Division 30 of the ITAA 1997 to add One Laptop per Australia Ltd and the Mary MacKillop Canonisation Gift Fund as well as reflect the change in name of The Clontarf Foundation Inc. [Schedule 6, items 5 to 7, items 31B, 70AA and 81A in the table in section 30-315]