Explanatory Memorandum
(Circulated by authority of the Minister for Housing and Assistant Treasurer, the Hon. Michael Sukkar MP)Chapter 2 Deductible gift recipients - new specific recipients
Outline of chapter
2.1 Schedule 2 to the Bill amends the ITAA 1997 to allow the following entities to be deductible gift recipients under the income tax law:
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- The Samuel Griffith Society Inc. (ABN 50 670 165 165);
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- Friends of Myall Creek Memorial Incorporated (ABN 87 040 729 116); and
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- Toy Libraries Australia Inc. (ABN 40 557 982 129).
Context of amendments
2.2 The income tax law allows income tax deductions for taxpayers who make gifts of $2 or more to a deductible gift recipient. Deductible gift recipients are entities that fall within one of the general categories set out in Division 30 of the ITAA 1997 or are specifically listed by name in that Division. Legislative references in this Chapter are to the ITAA 1997 unless otherwise specified.
2.3 Deductible gift recipient status helps eligible organisations attract public financial support for their activities.
2.4 The Samuel Griffith Society Inc. (ABN 50 670 165 165) is a charity that promotes the understanding of the Australian Constitution.
2.5 Friends of Myall Creek Memorial Incorporated (ABN 87 040 729 116) is a charity that maintains and develops the memorial efforts of the Myall Creek Station massacre.
2.6 Toy Libraries Australia Inc. (ABN 40 557 982 129) is a charity that supports not-for-profit toy libraries by encouraging families to play and learn together in a sustainable way.
Summary of new law
2.7 Schedule 2 to the Bill amends the ITAA 1997 to allow the following entities to be deductible gift recipients under the income tax law:
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- The Samuel Griffith Society Inc. (ABN 50 670 165 165);
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- Friends of Myall Creek Memorial Incorporated (ABN 87 040 729 116); and
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- Toy Libraries Australia Inc. (ABN 40 557 982 129).
Detailed explanation of new law
2.8 Taxpayers may claim an income tax deduction for gifts made to the Samuel Griffith Society Inc. (ABN 50 670 165 165) provided the gift complies with the existing requirements of the income tax law. This amendment ensures that the Samuel Griffith Society Inc. receives appropriate support through the Commonwealth tax system for supporting research. [Schedule 2, item 1, table item 3.2.16 in the table in subsection 30-40(2)]
2.9 Taxpayers may claim an income tax deduction for gifts made to the Friends of Myall Creek Memorial Incorporated (ABN 87 040 729 116) provided the gift complies with the existing requirements of the income tax law. This amendment ensures that the Friends of Myall Creek Memorial Incorporated receives appropriate support through the Commonwealth tax system. [Schedule 2, item 2, table item 13.2.25 in the table in section 30-105]
2.10 Taxpayers may claim an income tax deduction for gifts made to the Toy Libraries Australia Inc. (ABN 40 557 982 129) provided the gift complies with the existing requirements of the income tax law. This amendment ensures that the Toy Libraries Australia Inc. receives appropriate support through the Commonwealth tax system. [Schedule 2, item 2, table item 13.2.26 in the table in section 30-105]
Consequential amendments
2.11 Schedule 2 to the Bill so amends the index for Division 30 of the ITAA 1997 to reflect the new listings. [Schedule 2, items 3, 4 and 5, table items 50D, 106 and 116AA in the table in section 30-315]
Application and transitional provisions
2.12 The amendments commence on the first day of the quarter following Royal Assent. [Clause 2]
2.13 The following listings apply to gifts made on and after 1 July 2019:
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- The Samuel Griffith Society Inc. (ABN 50 670 165 165);
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- Friends of Myall Creek Memorial Incorporated (ABN 87 040 729 116); and
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- Toy Libraries Australia Inc. (ABN 40 557 982 129).
[Schedule 2, items 1 and 2, column 3 of table item 3.2.16 in the table in subsection 30-40(2), and column 3 of table items 13.2.25 and 13.2.26 in the table in section 30-105]
2.14 The amendments apply retrospectively. This ensures that gifts made to the entities from the above application dates qualify for income tax deductions provided the gifts comply with all requirements of the income tax law. The changes are wholly beneficial both to taxpayers making gifts of $2 or more to these entities and to the entities that receive these gifts.