Edited version of private advice

Authorisation number: 1052503370678

Date of advice: 18 February 2026

Ruling

Subject: Income tax exempt entity - public authority

Question 1

Is the ordinary and statutory income of Entity X exempt from income tax pursuant to section 50-1 of the Income Tax Assessment 1997 (ITAA 1997) on the basis that it is a public authority constituted under an Australian law pursuant to item 5.2 of the table in section 50-25 of the ITAA 1997?

Answer 1

Yes.Section 50-1 of the ITAA 1997 exempts from income tax entities which are covered in the tables in Division 50 of the ITAA 1997. This includes an entity which is considered a public authority constituted under an Australian law under item 5.2 in section 50-25 of the ITAA 1997 as an exempt entity.

We have concluded that you are a public authority constituted under an Australian law for the purposes of item 5.2 in section 50-25 of the ITAA 1997 for the following reasons:

1.            You carry on some undertaking of a public nature for the benefit of the community, as a national organisation responsible for establishing, coordinating and advocating national standards in the practice of a particular profession for the benefit of the Australian community.

2.            You operate as a not-for-profit entity and do not make private profits for your members.

3.            You have legislative power to do acts in relation to the public which would otherwise be beyond your power, based on your power under State and Territory legislation to recognise the qualifications in the profession that must be held by a person to be eligible for registration in a State or Territory, and

4.            You do have exceptional powers of doing what an ordinary private individual may not do, being the power to mandate relevant qualifications as a prerequisite for registration in the profession in a State or Territory.

Also, as you have a non-charitable purpose, you are not capable of being a registered charity. You are therefore not an ACNC type of entity and section 50-47 is not applicable. You are then an exempt entity and therefore satisfies the requirements of section 50-1 of the ITAA 1997.

Therefore, you are exempt from tax income tax pursuant to section 50-1 of the ITAA 1997.

Question 2

If Question 1 is no, will Entity X be exempt from income tax pursuant to another provision within Sub-Division 50-A of the ITAA 1997?

Answer 2

Not applicable, as we have ruled positively to question 1

This ruling applies for the following periods:

Year ended 30 June 202X

Year ending 30 June 202X

Tear ending 30 June 202X.

The scheme commenced on:

1 July 202X

Relevant facts and circumstances

Entity X is a company limited by guarantee that was established by the State and Territory boards for registration of a specific profession, and is a national organisation responsible for establishing, coordinating, and advocating national standards in the profession for the benefit of the Australian community.

The profession is regulated by a number of State and Territory registration boards, with each jurisdiction having its own Act and Regulations.

The boards are collectively the owners of Entity X and they each appoint representatives to serve on the board of Entity X.

A copy of the governing rules for Entity X has been provided.

It is a requirement of each State and Territory that members of the profession hold a qualification recognised by Entity X in order to be qualified for registration.

Relevant legislative provisions

Income Tax Assessment Act 1997 Division 50

Income Tax Assessment Act 1997 section 50-1

Income Tax Assessment Act 1997 section 50-25

Income Tax Assessment Act 1997 section 50-47

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

Income Tax Assessment Act 1936 section 23(d)

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