Senate

Taxation Laws Amendment Bill (No. 2) 1994

Explanatory Memorandum

(Circulated by the authority of the Treasurer the Hon Ralph Willis, M.P.)

Chapter 20 - Gifts

Summary of proposed amendments

Purpose of amendments

20.1 To allow, for a limited period, income tax deductions for gifts of $2 or more made to:

·
The "Weary" Dunlop Statue Appeal; and
·
The Sandakan Memorials Trust Fund [Clause 115].

Dates of effect

20.2 Gifts made to The "Weary" Dunlop Statue Appeal after 15 July 1993 and before 16 July 1994.

20.3 Gifts made to The Sandakan Memorials Trust Fund after 29 July 1993 and before 30 July 1995 [Clause 116].

Background to the legislation

20.4 Broadly, section 78 of the Principal Act provides deductions for gifts of $2 or more to various funds and organisations. A deduction is allowable in the year of income in which the gift is made.

20.5 A fund or organisation can be granted tax deductible gift status in two ways. Firstly, a fund or organisation may qualify under one of the general categories listed in section 78 such as a public benevolent institution or a public hospital. Secondly, a fund or organisation may be specifically listed in section 78 or in a register kept for the purposes of that section as having tax deductible gift status.

20.6 In some circumstances, deductibility for a gift to a fund or organisation may only be available if the gift is made during a period specified in the law.

Explanation of proposed amendments

20.7 Gifts of $2 or more made to The "Weary" Dunlop Statue Appeal will be eligible for tax deductions under item 5.2.3 of table 5 in subsection 78(4). However, under the same item, the tax deductibility of gifts made to the Appeal under item 5.2.3 will be limited to those gifts that are made after 15 July 1993 and before 16 July 1994 [Clause 116 - new item 5.2.3 of table 5 in subsection 78(4)].

20.8 Gifts of $2 or more made to The Sandakan Memorials Trust Fund will be eligible for tax deductions under item 5.2.2 of table 5 in subsection 78(4). However, under the same item, the tax deductibility of gifts made to the Fund under item 5.2.2 will be limited to those gifts that are made after 29 July 1993 and before 30 July 1995 [Clause 116 - new item 5.2.2 of table 5 in subsection 78(4)].


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