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Edited version of private advice
Authorisation Number: 1052011530171
Date of advice: 26 July 2022
Ruling
Subject: Exempt income - promoting development of manufacturing resources
Question
Are you exempt from income tax under section 50-1 of the Income Tax Assessment Act 1997 (ITAA 1997) as an association not carried on for purpose of profit or gain to the individual members, established for the purpose of promoting the development of a manufacturing resource of Australia under item 8.2(d) in section 50-40 of the ITAA 1997?
Answer
Yes.
This ruling applies for the following periods:
Year ended 30 June 20XX
Year ended 30 June 20XX
Year ended 30 June 20XX
The scheme commences on:
20XX
Relevant facts and circumstances
You previously received a private ruling, authorisation number XXXXXXXXXXXXX on this arrangement. The relevant facts remain the same.
You are a not-for-profit entity.
You are dedicated to the improvement of standards within your industry.
Membership is made up of various groups within your industry.
Members have a demonstrated history of and are bound by certain standards.
You are involved in self-regulation of the industry.
You also liaise with government entities.
You provide consumer protection.
You provide training open to everyone in the industry.
You are governed by your Constitution.
The objects for which you have been established are set out in your Constitution. Generally, they are to promote your industry, its activities, and further the standards and development of the industry.
Your Constitution contains a non-profit clause.
Your Constitution contains a dissolution clause.
You provide benefits to your members.
You provide advice on your website to the public.
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 50-47
Reasons for decision
The relevant facts remain the same, and the law and the Commissioner's view have not changed since the issue of private ruling authorisation number XXXXXXXXXXXXX.
The reasons for decision are the same as those contained in private ruling authorisation number XXXXXXXXXXXXX.
In addition, section 50-47 of the ITAA 1997 provides a special condition for all entities covered by section 50-1 of the ITAA 1997, it provides that an ACNC type of entity, will not be exempt from income tax unless they are registered under the Australian Charities and Not-for-profits Commission Act 2012.
Broadly, an entity capable of being a registered charity is an ACNC type of entity. You are not an ACNC type of entity.
Therefore, you are exempt from income tax under section 50-1 of the ITAA 1997 as an association not carried on for purpose of profit or gain to the individual members, established for the purpose of promoting the development of a manufacturing resource of Australia under item 8.2(d) in section 50-40 of the ITAA 1997.