Taxation Laws Amendment Act (No. 3) 1994 (138 of 1994)

Part 2   AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936

Division 9   Deductions for bequests of significant cultural value made to certain institutions

81   Deduction for gifts, pensions etc.

Section 78 of the Principal Act is amended:

(a) by omitting from the table in subsection (2):
              

"Gifts to The Australiana Fund, libraries, museums, or art galleries - (6), (13), (14), (15), (16)

and substituting:

"Gifts to The Australiana Fund, libraries, museums, or art galleries - (6), (6A), (13), (14), (15), (15A), (16), (16A)";

(b) by inserting in paragraph (4)(f) "(6A)," after "(6),";
              

(c) by inserting in paragraph (5)(f) "(6A)," after "(6),";
              

(d) by inserting after subsection (6) the following subsections:
              

Deductions for testamentary gifts of property-Cultural Bequests Program

"(6A) Subject to subsection (6F), a testamentary gift made by a taxpayer under the scheme formulated by the Australian Government and known as the Cultural Bequests Program to:

(a) The Australiana Fund; or

(b) a public library in Australia; or

(c) a public museum in Australia; or

(d) a public art gallery in Australia; or

(e) an institution in Australia consisting of a public library, a public museum and a public art gallery or any 2 of them;

is an allowable deduction if:

(f) the gift is property (other than an estate or interest in land or in a building or part of a building); and

(g) the property is given to, and accepted by, The Australiana Fund or the authority or institution concerned for inclusion in the collection, or any of the collections, maintained or being established by that Fund, authority or institution; and

(h) the Minister for Communications and the Arts has given the taxpayer a certificate under subsection (6B) approving the gift and specifying the value of the gift for the purposes of this subsection; and

(i) the value of the gift, as specified in the certificate, is $2 or more.

Gifts covered by subsection (6A)-issue of certificates

"(6B) Subject to subsections (6C) and (6E), the Minister for Communications and the Arts may, on written application by a taxpayer, give the taxpayer a certificate:

(a) approving a gift for the purposes of subsection (6A); and

(b) specifying the value of the gift for the purposes of that subsection; and

(c) containing such other information as the Commissioner, in writing, requires.

Gifts covered by subsection (6A)-approval to be in accordance with Ministerial guidelines

"(6C) A decision of the Minister for Communications and the Arts:

(a) to approve a gift for the purposes of subsection (6A); or

(b) to specify a particular value for a gift for the purposes of that

subsection;

must be made in accordance with written guidelines made by that Minister under this subsection.

Gifts covered by subsection (6A)-content of guidelines

"(6D) The guidelines made under subsection (6C) may require the Minister for Communications and the Arts, in approving gifts and specifying values, to take into account:

(a) specified criteria; or

(b) recommendations of particular bodies; or

(c) any other factors.

Gifts covered by subsection (6A)-restrictions on issue of certificates

"(6E) The Minister for Communications and the Arts:

(a) must determine, in writing, an amount as the maximum approval amount for certificates given under subsection (6B) for each financial year; and

(b) must not give any certificates under that subsection in a financial year before specifying the maximum approval amount for that financial year; and

(c) must not give a certificate under that subsection if the value specified in the certificate, when added to the values specified in all certificates previously given under that subsection in that financial year, would exceed the maximum approval amount for certificates given in that financial year.

Gifts covered by subsection (6A)-assessment in which deduction allowable

"(6F) Subject to subsection (6G), a deduction to which subsection (6A) applies is allowable in the assessment of the taxpayer in respect of income of the year of income in which the taxpayer died and not otherwise.

Gifts covered by subsection (6A)-when deduction allowable in assessment of taxpayer's estate

"(6G) If:

(a) an amount (the 'section 79C amount') of the deduction to which subsection (6A) applies is not allowable because of section 79C in the assessment of the taxpayer in respect of income of the year of income in which the taxpayer died; and

(b) the taxpayer died before the last day of a year of income;

the section 79C amount is allowable in the assessment of the taxpayer's estate in respect of income of the remainder of that year of income.";

(e) by inserting after subsection (15) the following subsection:

Value of gift-subsection (6A)

"(15A) For the purposes of subsection (6A), the value of a gift of property is the amount specified in the certificate given by the Minister for Communications and the Arts under subsection (6B) in relation to the gift.";

(f) by inserting after subsection (16) the following subsection:

Testamentary gifts made at time of death

"(16A) To avoid doubt, a testamentary gift is taken to be made at the time of death of the taxpayer who made the gift.";

(g) by inserting after subsection (25) the following subsection:

Disallowable instruments

"(25A) The following are disallowable instruments for the purposes of section 46A of the Acts Interpretation Act 1901:

(a) guidelines made under subsection (6C); and

(b) determinations under paragraph (6E)(a).".