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Edited version of private advice
Authorisation Number: 1052400853687
Date of advice: 29 May 2025
Ruling
Subject: Not-for-profit - promoting development-tourism
Question 1
Is the Club exempt from income tax under section 50-1 of the Income Tax Assessment Act 1997 (ITAA 1997) because it is an exempt entity as described in item 8.1(b) of the table in section 50-40 of the ITAA 1997?
Answer 1
Yes. The club is an exempt entity as it was established for the purpose of promoting the development of tourism and satisfies the not for profit requirement set out as a special condition for item 8.1(b) of the table in section 50-40 of the ITAA 1997.
This ruling applies for the following period:
Year ending 30 June 20XX
Year ending 30 June 20XX
Year ending 30 June 20XX
Year ending 30 June 20XX
Year ending 30 June 20XX
Year ending 30 June 20XX
The scheme commenced on:
1 July 20XX
Relevant facts and circumstances
This private ruling is based on the facts and circumstances set out below. If your facts and circumstances are different from those set out below, this private ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling.
The Club is an Australian resident for income tax purposes.
The Club is a non-profit company limited by guarantee under the Corporations Act 2001.
Membership of the club is open to anyone who is interested in tourism undertaken by a specified means or the business of the club.
Financial members can attend, speak at, move motions, and vote at general meetings of the Club under the provisions of the Club constitution.
Club members pay a joining fee and subscription fees for the benefits they receive from club membership.
The purpose of the club is to develop, promote, and facilitate tourism by the specified mode of travel.
The Club is bound by its constitution to: improve conditions for travel by that mode of travel, provide technical advice on that mode of travel, foster and encourage safe travel, deal in such trade as will foster development of that mode of travel, liaise with government authorities on matters relating to that mode of travel, represent those undertaking tourism using that mode of travel, and provide social activities for those using that mode of travel.
Under the Club constitution the income and property of the Club is to be applied solely to the objects of its constitution.
On the winding up or dissolution of the Club any property remaining after satisfaction of debts and liabilities is to be transferred to an institution determined by the Club members or an institution with similar objects if no such determination is made.
Activities
Activities undertaken by the Club include:
• continuing to maintain a website and traveller apps to disseminate information on travel using the specified mode of travel.
• continuing to publish and distribute at no cost printed magazines and travel guides including information on locations that are suitable for, and have facilities suited to, travel by the specified means.
• continuing to promote and support the Clubs initiatives under which facilities compatible to the needs of those tourists using the specified means of travel are provided to local authorities and businesses free of charge.
• continuing to promote sustainable tourism and environmental awareness for tourists using the specified mode of travel.
• continuing to engage with public media to represent those tourists travelling by the specified mode of travel.
• engaging volunteer and professional lobbyists to identify and promote issues relevant to all tourists using the specified means of travel.
• attending local government conferences in all states to raise awareness of and promote the interests of those using the specified means of travel.
• attending tourism exhibits to educate customers and purchasers on issues and liaising with manufacturers and retailers.
• offering innovative insurance products for those undertaking tourist activity using the specified mode of travel.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 50-1
Income Tax Assessment Act 1997 section 50-40