Senate

Taxation Laws Amendment Bill (No. 3) 1994

Explanatory Memorandum

(Circulated by the authority of the Treasurer the Hon Ralph Willis, M.P.)
THIS MEMORANDUM TAKES ACCOUNT OF AMENDMENTS MADE BY THE HOUSE OF REPRESENTATIVES TO THE BILL AS INTRODUCED

CHAPTER 9 - GIFTS - TECHNICAL AMENDMENTS

Overview

9.1 The Bill will correct two typographical errors that occurred during the recent restructuring of the gift provisions. [Clause 86]

Summary of the amendments

Purpose of the amendments

9.2 To restore tax deductions for donations of $2 or more to public funds established and maintained for the comfort, recreation or welfare of members of the armed forces.

9.3 To correct a typographical error which occurred during the recent restructuring of the gift provisions.

Date of effect

9.4 1 July 1993 (to coincide with the date of effect of the gift provisions restructure). [Clause 88]

Background to the legislation

9.5 Broadly, section 78 of the Income Tax Assessment Act 1936 (the 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.

9.6 As part of Taxation Laws Amendment Act (No.2) 1993 (Act No.18 of 1993) , section 78 of the Act was restructured to improve the readability of the gift provisions.

9.7 During the restructure, two minor typographical errors were made in respect of two of the items listed in the tables in subsection 78(4).

Explanation of the amendments

9.8 The amendments are designed to return the legislation to a technically correct state and to ensure that any donations that have been made to the respective funds since the date of the section 78 restructure (1July1993) will not be denied deductibility due to these technical errors. [Clause 87]


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