Explanatory Memorandum
(Circulated by the authority of the Deputy Prime Minister and Treasurer, the Hon Wayne Swan MP)Chapter 4 - Deductible gift recipients
Outline of chapter
4.1 Schedule 4 to this Bill amends the Income Tax Assessment Act 1997 (ITAA 1997) to update the list of deductible gift recipients (DGRs) by adding six entities as DGRs.
Context of amendments
4.2 The income tax law allows income tax deductions for taxpayers who make gifts of $2 or more to DGRs. To be a DGR, an entity must fall within one of the general categories set out in Division 30 of the ITAA 1997 or be specifically listed by name in that Division.
4.3 DGR status helps eligible funds and entities attract public financial support for their activities.
Summary of new law
4.4 The amendments add The Conversation Trust, National Congress of Australia's First Peoples Limited, and Philanthropy Australia Inc. as specifically listed DGRs for an unlimited period. The amendments also add National Boer War Memorial Association Incorporated, the Anzac Centenary Public Fund and the Australian Peacekeeping Memorial Project Incorporated as specifically listed DGRs for a time limited period.
Detailed explanation of new law
The Conversation Trust (ABN 80 958 603 438)
4.5 Taxpayers may claim a deduction for gifts made to The Conversation Trust after 21 November 2012. [Schedule 4, item 1, item 2.2.42 in the table in subsection 30-25(2) of the ITAA 1997]
4.6 The Conversation is a charity that publishes analysis and commentary on current affairs from the university and research sector, written by experts and delivered directly to the public through its website, Twitter and Facebook.
National Congress of Australia's First Peoples Limited (ABN 47 143 207 587)
4.7 Taxpayers may claim a deduction for gifts made to National Congress of Australia's First Peoples Limited after 30 June 2013. [Schedule 4, item 2, item 4.2.42 in the table in subsection 30-45(2) of the ITAA 1997]
4.8 National Congress of Australia's First Peoples Limited is a national representative organisation of Aboriginal and Torres Strait Islander peoples. It works for the recognition of Aboriginal and Torres Strait Islander rights, and towards securing a better economic, social, cultural and environmental future for these peoples.
National Boer War Memorial Association Incorporated (ABN 29 293 433 202)
4.9 Taxpayers may claim a deduction for gifts made to National Boer War Memorial Association Incorporated after 31 December 2012 and before 1 January 2015. [Schedule 4, item 3, item 5.2.33 in the table in subsection 30-50(2) of the ITAA 1997]
4.10 National Boer War Memorial Association Incorporated is seeking donations to commemorate Australian service in the Boer War (1899 to 1902) by constructing a memorial on Anzac Parade in Canberra, ACT.
Anzac Centenary Public Fund (Operated by Department of Veterans' Affairs - ABN 23 964 290 824)
4.11 Taxpayers may claim a deduction for gifts made to the Anzac Centenary Public Fund after 30 November 2012 and before 1 May 2019. [Schedule 4, item 3, item 5.2.31 in the table in subsection 30-50(2) of the ITAA 1997]
4.12 Donations collected in the Anzac Centenary Public Fund will be used to fund a range of Anzac Centenary initiatives and projects as agreed by Government, for the commemoration of the Anzac Centenary and Australia's involvement in World War One (1914 to 1918).
The Australian Peacekeeping Memorial Project Incorporated (ABN 56 102 846 791)
4.13 Taxpayers may claim a deduction for gifts made to Australian Peacekeeping Memorial Project Incorporated after 31 December 2012 and before 1 January 2015. [Schedule 4, item 3, item 5.2.32 in the table in subsection 30-50(2) of the ITAA 1997] .
4.14 The Australian Peacekeeping Memorial Project Incorporated is seeking donations to build a memorial on Anzac Parade in Canberra, ACT to recognise the service of Australians who have served in peacekeeping missions.
Philanthropy Australia Inc. (ABN 79 578 875 531)
4.15 Taxpayers may claim a deduction for gifts made to Philanthropy Australia Inc. after 27 February 2013. [Schedule 4, item 5, item 13.2.19 in the table in section 30-105 of the ITAA 1997] .
4.16 Philanthropy Australia Inc. is a national membership body for the philanthropic sector, primarily servicing Australia's philanthropic trusts and foundations, and providing directory and information products on philanthropy.
Consequential amendments
4.17 An out-dated listing for the Australian Peacekeeping Memorial Project Incorporated has been removed. [Schedule 4, item 4, item 13.2.15 in the table in section 30-105 of the ITAA 1997] .
4.18 Changes have been made to update the index in Division 30 to add the new entities. [Schedule 4, items 6 to 11] .
4.19 Part 2 of Schedule 4 also provides for the repeal of the time limited DGRs after they cease to have effect.
4.20 Entries for National Boer War Memorial Association Incorporated and Australian Peacekeeping Memorial Project Incorporated will be repealed on 1 July 2019. The entry for the Anzac Centenary Public Fund will be repealed on 1 July 2023. [Schedule 4, items 12 to 15]
STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Deductible gift recipients
4.21 This Schedule is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011 .
Overview
4.22 This Schedule amends the list of DGRs in Division 30 of the ITAA 1997. The income tax law allows income tax deductions for taxpayers who make gifts of $2 or more to DGRs.
4.23 The amendments add The Conversation Trust, National Congress of Australia's First Peoples Limited and Philanthropy Australia Inc. as specifically listed DGRs for an indefinite period. The amendments also add National Boer War Memorial Association Incorporated, the Anzac Centenary Public Fund and the Australian Peacekeeping Memorial Project Incorporated as specifically listed DGRs for a time limited period.
Human rights implications
4.24 This Schedule does not engage any of the applicable rights or freedoms.
Conclusion
4.25 This Schedule is compatible with human rights as it does not raise any human rights issues.
Assistant Treasurer, the Hon David Bradbury