Edited version of private advice

Authorisation Number: 1052458076443

Date of advice: 15 October 2025

Ruling

Subject: Income tax exempt entity

Question

Will X be income tax exempt under section 50-1 of the Income Tax Assessment Act 1997 (ITAA 1997) as an association established for the purpose of promoting the development of Australian industrial resources pursuant to item 8.2(c) of section 50-40 of the ITAA 1997?

Answer

Yes.

The ordinary and statutory income of X is exempt from income tax under section 50-1 of the ITAA 1997 on the basis that X was established for the purpose of promoting the development of Australian industrial resources under item 8.2(c) of the table in section 50-40 of the ITAA 1997, its activities are not carried on for the profit or gain of its individual members as outlined in its constitution, and it is not a charity

This ruling applies for the following periods:

1 July 20XX to 30 June 20XX

The scheme commenced on:

XX Month 20XX

Relevant facts and circumstances

X is a national organisation that is owned by the relevant industry and government.

X's objective is to improve production within the relevant industry.

X is a company limited by guarantee.

X is not an ACNC type of entity.

X is not carried on for the profit or gain of its individual members.

Relevant provisions of the Constitution of X

The Constitution of X contained a provision that the main purpose for which X is established is to promote the development of the industrial resources within the industry in Australia.

The Constitution of X contained a provision that stipulated that the entity must not be operated for the purpose of the profit or gain of any member, and stipulated that the entity could not apply, pay or transfer any portion of the income and property of the entity for the benefit of or to a member.

The Constitution of X also contained a provision that stipulated that if the entity was wound up, any surplus should be donated to a non-profit entity with similar purposes to X, whose constitution prohibits the distribution of its income and property to an extent at least as great as that imposed by the Constitution of X. In no circumstances were funds to be refunded to the members. The members had no right to participate in any distribution or payment of the assets or property of the company upon winding up.

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 50-40 item 8.2(c)

Income Tax Assessment Act 1997 section 50-47

Income Tax Assessment Act 1997 section 50-70

Income Tax Assessment Act 1997 subsection 995-1(1)

Income Tax Assessment Act 1936 former paragraph 23(h)

Australian Charities and Not-for profits Commission Act 2012 subsection 25-5(5)

Charities Act 2013 section 12

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