House of Representatives

Explanatory Memorandum

(Circulated by authority of the Treasurer, the Hon Peter Costello, MP)

Chapter 4 - Gifts or contributions

Outline of chapter

4.1 Schedule 4 to this bill amends Division 30 of the ITAA 1997. These amendments will allow an income tax deduction to the donor for certain gifts to the value of $2 or more to a number of funds and organisations listed in Table 4.1.

Summary of new law

4.2 The amendments will allow income tax deductions for certain gifts to the value of $2 or more made to the following funds and organisations from, and including, the day of announcement.

Note A: The Prime Minister announced in Parliament on 7 December 2000 during the presentation of the final report to Parliament by the Council for Aboriginal Reconciliation that gifts of $2 or more to Reconciliation Australia would attract an income tax deduction from that date.

4.3 In addition, the amendments listed in Table 4.2 change the name of a fund, authority or institution where that organisation has changed its name. This will ensure the organisation continues to qualify for gift deductibility status.

Detailed explanation of new law

4.4 The funds, authorities and institutions discussed in paragraphs 4.5 to 4.19 have been included in the tables in Subdivision 30-B of the ITAA 1997. Gifts of $2 or more to these organisations will qualify for deduction in accordance with section 30-15.

4.5 The Southcare Helicopter Fund has been established to raise funds for the Southcare Helicopter Service, which provides emergency medical rescue and retrieval services to the ACT and south-eastern NSW. [Schedule 4, item 1, subsection 30-20(2)]

4.6 The Breast Cancer Network Australia will raise funds to improve the treatment and care of those diagnosed with breast cancer and work towards preventing breast cancer for the benefit of the Australian community. [Schedule 4, item 1, subsection 30-20(2)]

4.7 The Australian Nuffield Farming Scholars Association offers a range of scholarships to young farmers. This funds support of Australian agriculturists will encourage excellence in all aspects of Australian agricultural production, distribution and management. [Schedule 4, item 2, subsection 30-25(2)]

4.8 The Dymocks Literacy Foundation Limited will raise funds to provide appropriate literacy programs for children and adults in Australia. [Schedule 4, item 2, subsection 30-25(2)]

4.9 The Sir Earl Page Memorial Trust will promote and encourage research into public policy issues with particular relevance to rural and regional Australia. [Schedule 4, item 3, subsection 30-40(2)]

4.10 Research Australia Limited advances health and medical research to inform the public about the nature of, and stimulate interest in, health and medical research. [Schedule 4, item 3, subsection 30-40(2)]

4.11 Reconciliation Australia Limited will raise funds to provide a national focus and national leadership in working towards reconciliation between all members of the Australian community. [Schedule 4, item 4, subsection 30-45(2)]

4.12 The RSL Foundation will raise monies for the benefit of returned services personnel. The Foundation will help the RSL in its enormous commitments in the next decade in caring for our fast-ageing World War II veterans. [Schedule 4, item 5, subsection 30-50(2)]

4.13 The Australian Chinese Ex-Services National Reunion War Memorial Fund will raise funds to erect a memorial dedicated to Australians of Chinese descent who have served in the Australian Defence Force since World War I. The proposed memorial will ensure that the wartime service to Australia by Chinese Australians is appropriately honoured and acknowledged. [Schedule 4, item 5, subsection 30-50(2)]

4.14 The Royal Australian Airforce (RAAF) Memorial Trust Fund will raise funds to redevelop the existing national memorial dedicated to members of the RAAF so that it more adequately reflects the sacrifice and service of members of the RAAF. [Schedule 4, item 5, subsection 30-50(2)]

4.15 The Voluntary Service to Indigenous Communities Foundation will assist indigenous Australian communities access volunteers with professional, business and technical skills. [Schedule 4, item 10, section 30-65]

4.16 The Australia for UNHCR will conduct educational, promotional and fundraising activities on behalf of the UNHCR in Australia to support the work of the United Nations High Commissioner for Refugees. [Schedule 4, item 11, subsection 30-80(2)]

4.17 The Bradman Memorial Fund will raise funds to promote the education and sporting development of young cricketers from disadvantaged communities. [Schedule 4, item 12, section 30-90]

4.18 The Foundation for Young Australians will support a range of projects aimed at assisting young Australians to reach their full potential. The Foundations work has a particular emphasis on assistance and education of disadvantaged young people. It is the successor to the Queen Elizabeth II Silver Jubilee Trust for Young Australians and the Australian Youth Foundation. [Schedule 4, item 14, section 30-95]

4.19 Visy Cares will raise funds primarily for the development of projects which enhance the quality of life and aid disadvantaged minority and special interest groups. [Schedule 4, item 14, section 30-95]

Change of names

4.20 This bill updates the tables in Subdivision 30-B to reflect the change of names of the following funds:

•

National Parks Foundation of South Australia Incorporated to Nature Foundation SA Incorporated from, and including, 10 March 2000 [Schedule 4, items 6 and 7, subsection 30-55(2)] ;

•

Work Skill Australia Foundation to WorldSkills Australia Inc from, and including, 11 January 2001 [Schedule 4, items 8 and 9, section 30-65] ; and

•

Australian Foundation for Culture and the Humanities Ltd to Australia Business Arts Foundation Ltd from, and including, 24 July 2000 [Schedule 4, items 15 and 16, subsection 30-100] .

4.21 The index to Division 30 is also updated to include the new funds, authorities and institutions. [Schedule 4, items 17 to 31, section 30-315]

Application provisions

4.22 The amendments will apply from the public announcement date for each fund, as itemised in Tables 4.1 and 4.2.