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Edited version of private advice
Authorisation Number: 1052254510208
Date of advice: 23 May 2024
Ruling
Subject: Income tax - exempt entity
Question
Is your ordinary and statutory income exempt from income tax under sections 50-1 and 50-40 of the Income Tax Assessment Act 1997 (ITAA 1997)?
Answer
Yes.
Your ordinary and statutory income is exempt from income tax under section 50-1 of the ITAA 1997 on the basis that you were established for the purpose of promoting the development of Australian industrial resources under item 8.2(c) and manufacturing resources under item 8.2(d) of section 50-40 of the ITAA 1997, your activities are not carried on for the profit or gain of your individual members as outlined in your constitution and you are not a charity.
This ruling applies for the following period:
Year ending 30 June 2024
The scheme commenced on:
1 July 2023
Relevant facts and circumstances
You are an unlisted Australian public company limited by guarantee.
You are a nationally focused not for profit company.
Your constitution outlines your purpose, which aligns with the requirements of section 50-40 of the ITAA 1997.
Your constitution confirms the entity is not-for-profit andmust not distribute any income or assets directly or indirectly to its members as members.
The winding up clause of your Constitution further confirms your status as not-for-profit:
If the Company is wound up, any surplus assets must not be distributed to a Member or a former Member of the Company.
Subject to the Corporations Act and any other applicable Act, and any court order, any surplus assets that remain after the Company is wound up must be distributed to one or more organisations:
a) with purposes similar to, or inclusive of, the Purposes; and
b) which also prohibit the distribution of any surplus assets to its members to at least the same extent as the Company.
The decision as to the organisation/s to be given the surplus assets must be made by a special resolution of Voting Members at or before the time of winding up. If the Voting Members do not make this decision, the Company may apply to the Supreme Court to make this decision.
You are not registered as a charity with the Australian Charities and Not-for-profits Commission.
You have provided evidence showing that you promote the development of Australian industrial and manufacturing resources through your activities.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 50-1
Income Tax Assessment Act 1997 section 50-40
Income Tax Assessment Act 1997 section 50-47
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