House of Representatives

Explanatory Memorandum

(Circulated by authority of the Treasurer, the Hon Scott Morrison MP)

Glossary

The following abbreviations and acronyms are used throughout this explanatory memorandum.

General outline and financial impact

Deductible gift recipients

Schedule 1 to this Bill amends the Income Tax Assessment Act 1997 to update the list of specifically listed deductible gift recipients. Two new organisations will be added, namely International Jewish Relief Limited and the National Apology Foundation Ltd.

Date of effect: These amendments apply to gifts made to each organisation on or after 1 January 2015.

Proposal announced: This measure was announced in the 2015-16 Budget.

Financial impact: These amendments will have the following financial impact ($m):

Human rights implications: This Schedule does not raise any human rights issues. See Statement of Compatibility with Human Rights - Chapter 1, paragraphs 1.12 to 1.15.

Compliance cost impact: Nil.

Chapter 1 - Deductible gift recipients

Outline of chapter

1.1 Schedule 1 to this Bill amends the Income Tax Assessment Act 1997 (ITAA 1997) to update the list of specifically listed deductible gift recipients (DGR). Two new organisations will be added, namely International Jewish Relief Limited and the National Apology Foundation Ltd.

Context of amendments

1.2 The income tax law allows income tax deductions for taxpayers who make gifts of $2 or more to a DGR. DGRs are entities which 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.

1.3 DGR status helps eligible funds and entities attract public financial support for their activities.

Summary of new law

1.4 The amendments add International Jewish Relief Limited and the National Apology Foundation Ltd as DGRs specifically listed by name.

1.5 This ensures that gifts of $2 or more, made to those organisations on or after 1 January 2015, will be tax deductible.

Detailed explanation of new law

International Jewish Relief Limited (ABN 27 165 739 748)

1.6 Taxpayers may claim a tax deduction for gifts made to International Jewish Relief Limited on or after 1 January 2015. [Schedule 1, item 1, item 9.2.26 in the table in subsection 30-80(2) of the ITAA 1997]

1.7 International Jewish Relief Limited is a public company limited by guarantee with objectives of helping impoverished Jews and struggling Jewish communities around the world, and strengthening Jewish response to worldwide humanitarian crises and disasters.

National Apology Foundation Ltd (ABN 99 601 082 553)

1.8 Taxpayers may claim a tax deduction for gifts made to the National Apology Foundation Ltd on or after 1 January 2015. [Schedule 1, item 2, item 13.2.22 in the table in section 30-105 of the ITAA 1997]

1.9 The National Apology Foundation Ltd aims to sustain the spirit and substance of the National Apology to Indigenous Australians for future generations of Australians.

Consequential amendments

1.10 Changes have been made to update the index in Division 30 of the ITAA 1997 to reflect the new listings. [Schedule 1, items 3 and 4, items 63AA and 73AAAA in the table in section 30-315 of the ITAA 1997]

Application and transitional provisions

1.11 The listing of International Jewish Relief Limited and the National Apology Foundation Ltd applies to gifts made on or after 1 January 2015.

STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Deductible gift recipients

1.12 Schedule 1 to this Bill 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

1.13 This Schedule amends the Income Tax Assessment Act 1997 to update the list of specifically listed deductible gift recipients to include International Jewish Relief Limited and the National Apology Foundation Ltd.

Human rights implications

1.14 This Schedule does not engage any of the applicable rights or freedoms.

Conclusion

1.15 This Schedule is compatible with human rights as it does not raise any human rights issues.

Index

Schedule 1: Deductible gift recipients