Explanatory Memorandum
(Circulated by the authority of the Deputy Prime Minister and Treasurer, the Hon Wayne Swan MP)Chapter 4 - Deductible gift recipients
Outline of chapter
4.1 Schedule 5 to this Bill amends the Income Tax Assessment Act 1997 (ITAA 1997) to update the list of deductible gift recipients (DGRs) by adding one entity as a DGR.
4.2 All references to legislative provisions in this chapter are to the ITAA 1997.
Context of amendments
4.3 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 or be specifically listed by name in that Division.
4.4 DGR status assists eligible funds and organisations to attract public support for their activities.
4.5 The Diamond Jubilee Trust Australia has been established to raise funds in Australia for the commemoration of Her Majesty Queen Elizabeth II's Diamond Jubilee. It will collect funds for the purpose of delivering charitable projects for the support and advancement of individuals of all ages, with a focus on the poor and disadvantaged, through supporting the work of the Queen Elizabeth Diamond Jubilee Trust in the UK.
4.6 The listing is time limited, and will allow The Diamond Jubilee Trust Australia to collect tax deductible donations after 31 October 2012 and before 1 July 2015. This is to reflect the period of fundraising for Her Majesty's Diamond Jubilee.
Summary of new law
4.7 The amendment adds The Diamond Jubilee Trust Australia as a DGR to Division 30 of the ITAA 1997 for a time limited period.
Detailed explanation of new law
The Diamond Jubilee Trust Australia (ACN 159 853 460)
4.8 Taxpayers may claim a deduction for gifts made to The Diamond Jubilee Trust Australia after 31 October 2012 and before 1 July 2015. [Schedule 5, item 1, item 9 . 2 . 2 in the table in subsection 30-80(2) of the ITAA 1997]
Consequential amendments
4.9 Changes have been made to update the index in Division 30 of the ITAA 1997 to add The Diamond Jubilee Trust Australia. [Schedule 5, item 2, item 44AAAA in subsection 30-315]
STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Deductible gift recipients
4.10 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
4.11 This Schedule adds The Diamond Jubilee Trust Australia as a DGR to Division 30 of the ITAA 1997 for a time limited period.
Human rights implications
4.12 This Schedule does not engage any of the applicable rights or freedoms.
Conclusion
4.13 This Schedule is compatible with human rights as it does not raise any human rights issues.
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