Explanatory Memorandum
(Circulated by the authority of the Deputy Prime Minister and Treasurer, the Hon Wayne Swan MP)Chapter 2 - Deductible gift recipients
Outline of chapter
2.1 Schedule 2 to this Bill amends the Income Tax Assessment Act 1997 (ITAA 1997) to update the list of deductible gift recipients (DGRs) by adding two entities as DGRs and extending the listing of a further three entities.
Context of amendments
2.2 The income tax law allows income tax deductions for taxpayers who make gifts of $2 or more to DGRs. To be a DGR, an organisation must fall within one of the general categories set out in Division 30 of the ITAA 1997 or be specifically listed by name in that Division.
2.3 DGR status assists eligible funds and organisations to attract public support for their activities.
Summary of new law
2.4 The amendments add AE1 Incorporated as a DGR for a time limited period and Teach for Australia for an indefinite period, extend the DGR listing of Australia for UNHCR indefinitely and extend the DGR listings of Yachad Accelerated Learning Project Limited and One Laptop per Child Australia Ltd for a time limited period.
Detailed explanation of new law
AE1 Incorporated (ABN 65 173 229 050)
2.5 AE1 Incorporated is specifically listed as a DGR. This allows taxpayers to claim a deduction for gifts made to AE1 Incorporated after 25 September 2011 and before 26 September 2014. [Schedule 2, item 4, item 9.2.9 in the table in subsection 30-80(2) of the ITAA 1997]
2.6 AE1 Incorporated has been given DGR listing for the purpose of raising funds to search for the AE1, Australia's first submarine, which was lost off the coast of Papua New Guinea in 1914.
Australia for UNHCR (ABN 35 092 843 322)
2.7 The limit on the period of time for which taxpayers may claim a deduction for gifts made to Australia for UNHCR is removed. This allows taxpayers to claim a deduction for gifts made to Australia for UNHCR for an indefinite period of time after 27 June 2007. [Schedule 2, item 5, item 9.2.10 in the table in subsection 30-80(2) of the ITAA 1997]
One Laptop per Child Australia Ltd (ABN 34 141 060 586)
2.8 The limit on the period of time for which taxpayers may claim a deduction for gifts made to One Laptop per Child Australia Ltd is modified to 1 July 2016. Taxpayers may claim a deduction for gifts made to One Laptop per Child Australia Ltd after 26 May 2010 and before 1 July 2016. [Schedule 2, item 2, item 2.2.38 in the table in subsection 30-25(2) of the ITAA 1997]
Teach for Australia (ABN 27 133 833 762)
2.9 Teach for Australia is specifically listed as a DGR. This allows taxpayers to claim a deduction for gifts made to Teach for Australia after 31 December 2012. [Schedule 2, item 3, item 2.2.41 in the table in subsection 30-25(2) of the ITAA 1997]
2.10 Teach for Australia operates a post-graduate conversion program for graduates of any discipline. Participants receive a teaching qualification and undertake a placement in a disadvantaged secondary school.
Yachad Accelerated Learning Project Limited (ABN 20 111 105 401)
2.11 The limit on the period of time for which taxpayers may claim a deduction for gifts made to Yachad Accelerated Learning Project Limited is modified to 1 July 2015. Taxpayers may claim a deduction for gifts made to Yachad Accelerated Learning Project Limited after 29 June 2005 and before 1 July 2015. [Schedule 2, item 1, item 2.2.34 in the table in subsection 30-25(2) of the ITAA 1997]
Consequential amendments
2.12 Duplicated numbering has been corrected for the table item reference for Rhodes Trust in Australia. [Schedule 2, item6, item 9.2.2 in the table in subsection 30-80(2) of the ITAA 1997]
2.13 Changes have been made to update the Index in Division 30 to add AE1 Incorporated and Teach for Australia and correct the table reference for Rhodes Trust in Australia. [Schedule 2, items7, 8 and 9, items 2AAC, 97AAA and 114A in the table in section 30-315 of the ITAA 1997]
STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Deductible gift recipients
2.14 This Schedule 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
2.15 This Schedule amends the list of deductible gift recipients (DGRs) in Division 30 of the Income Tax Assessment Act 1997 . The income tax law allows income tax deductions for taxpayers who make gifts of $2 or more to DGRs.
2.16 AE1 Incorporated is listed as a DGR for a time limited period, Teach for Australia is listed as a DGR for an indefinite period of time, the DGR listing of Australia for UNHCR is extended indefinitely and the listings of Yachad Accelerated Learning Project Limited and One Laptop per Child Australia Ltd are extended for a time limited period.
Human rights implications
2.17 This Schedule does not engage any of the applicable rights or freedoms.
Conclusion
2.18 This Schedule is compatible with human rights as it does not raise any human rights issues.
Assistant Treasurer, the Hon David Bradbury
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