Edited version of private advice

Authorisation Number: 1052340173060

Date of advice: 11 December 2024

Ruling

Subject: Income tax exempt - promotion of the development of industrial resources

Question 1

Is the Company exempt from income tax under section 50-1 of the Income Tax Assessment Act 1997 (ITAA 1997) as a society or association established for the purpose of promoting the development of an Australian industrial resources in accordance with item 8.2(c) of the table in section 50-40 of the ITAA 1997?

Answer 1

Yes

The Company's ordinary and statutory income is exempt from income tax under section 50-1 of the ITAA 1997 on the basis that you were established for the purpose of promoting the development of Australian industrial resources under item 8.2(c) of the table in section 50-40 of the ITAA 1997. The Company's activities are not carried on for the profit or gain of the individual members as outlined in the constitution, and the Company is not a charity.

This ruling applies for the following periods:

XX July 20XX to XX June 20XX

The scheme commenced on:

XX July 20XX

Relevant facts and circumstances

The company is involved in collaborating with stakeholders to achieve certain aims within an industry.

It is not registered as a charity with the Australian Charities and Not-for-Profits Commission (ACNC).

The Company conducts its main activities in Australia.

The Company is governed by its Constitution which was adopted on X.

The Company has provided a copy of its constitution and details of its activities.

The Company's Constitution (Constitution) outlines the Company's objectives, which aligns with the requirements of item 8.2(c) of the table in section 50-40 of the ITAA 1997.

The Constitution confirms the entity is not-for-profit and must not distribute any income or assets directly or indirectly to its members as members.

The application of surplus assets articles of the Constitution further confirms the Company status as not-for-profit.

On winding up the Company will not distribute property to or distribute among the Members:

Winding up and application of surplus assets

If upon the winding up or dissolution of the Company there remains, after satisfaction of all its debts and liabilities, any property whatsoever, the same shall not be paid to or distributed among the Members, but shall be given to, transferred to, some other institution or institutions having objects similar to the objects of the Company, and whose constitution shall prohibit the distribution of its or their income and property among its or their members to an extent at least as great as is imposed on the Company or by virtue of Article X hereof, such institution or institutions to be determined by the Members at or before the time of dissolution and in default thereof by application to the Supreme Court for determination.

The Company further confirms that it complies with all the substantive requirements of its governing rules and applies its income and assets solely for the purposes for which it was established.

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 50-40 item 8.2(c)

Income Tax Assessment Act 1997 section 50-47

Income Tax Assessment Act 1997 section 50-70

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

Income Tax Assessment Act 1936 former paragraph 23(h)

Australian Charities and Not-for profits Commission Act 2012 subsection 25-5(5)

Charities Act 2013 section 5