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Edited version of your written advice
Authorisation Number: 1012979522060
Date of advice: 2 March 2016
Ruling
Subject: Health Organisation and income tax exemption
Question 1
Is the health organisation a not-for-profit organisation?
Answer
Yes.
Question 2
Is the health organisation entitled to income tax exemption as a not-for-profit organisation?
Answer
No
This ruling applies for the following periods:
August 20XX to 30 June 20YY
July 20YY to 30 June 20ZZ
The scheme commences on:
August 20XX
Relevant facts and circumstances
The entity is a health organisation (the 'Association') seeking to confirm its status as an income tax exempt entity pursuant to section 50-30 of the ITAA 1997.
The Rules of the Association contain a non-profit clause and winding up clause, and records show it is incorporated in a particular state.
Hence, it is accepted the Association is not-for-profit.
Relevant legislative provisions
Income Tax Assessment Act 1997 50-5
Income Tax Assessment Act 1997 50-30
Reasons for decision
To be exempt from income tax under section 50-30 of the ITAA 1997, an organisation must be:
• Item 6.1: a public hospital that meets the special conditions of section 50-55, or
• Item 6.2: a hospital carried on by a society or association not carried on for the profit or gain of its individual members, or
• Item 6.3: a private health insurer within the meaning of the Private Health Insurance Act 2007 not carried on for the profit or gain of its individual members.
The objects of the Association as articulated in the constitution.
The Association's website states its purpose.
From the Association's governing document and the website, it is clear that whilst the Association in focused on health, it is not a public hospital, not-for-profit hospital or a not-for-profit private health insurer.
Therefore, the Association is not entitled to income tax exemption under section 50-30 of the ITAA 1997 as a health organisation.