Explanatory Memorandum
(Circulated by authority of the Treasurer, the Hon Peter Costello MP)General outline and financial impact
Deductible gift recipients
Schedule 1 to this Bill amends the Income Tax Assessment Act 1997 (ITAA 1997) to update the list of deductible gift recipients (DGRs) and extend the period for which deductions are allowed for gifts to certain funds that have time limited DGR status.
Date of effect: Deductions for gifts to the following organisations that are listed as DGRs under this Schedule, apply as follows:
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- Don Chipp Foundation Ltd from 27 June 2006;
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- Lingiari Policy Centre from 26 July 2006;
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- Nonprofit Australia Ltd from 29 June 2006 until 28 June 2009;
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- Playgroup SA Inc from 6 August 2006;
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- Point Nepean Community Trust from 27 June 2006 until 10 June 2009;
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- St Mary's Cathedral Restoration Appeal Incorporated from 27 April 2006 until 26 April 2007; and
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- The Ranfurly Library Service Incorporated from 3 May 2006.
In addition, this Schedule extends the DGR listing of:
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- Bowral Vietnam Memorial Walk Trust Incorporated until 15 August 2006;
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- Dunn and Lewis Youth Development Foundation Limited until 31 December 2006;
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- St Paul's Cathedral Restoration Fund until 22 April 2008; and
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- Yachad Accelerated Learning Project Limited until 30 June 2008.
Proposal announced: The deductibility of gifts to the Don Chipp Foundation Ltd was announced in the Minister for Revenue and Assistant Treasurer's Press Release No. 042 of 28 June 2006.
The deductibility of gifts to the Nonprofit Australia Ltd was announced in the Minister for Revenue and Assistant Treasurer's Press Release No. 045 of 30 June 2006.
The deductibility of gifts to the Lingiari Policy Centre was announced in the Minister for Revenue and Assistant Treasurer's Press Release No. 057 of 28 July 2006.
The deductibility of gifts to the Playgroup SA Inc was announced in the then Minister for Revenue and Assistant Treasurer's Press Release No. C059/04 of 25 June 2004.
The deductibility of gifts to the Point Nepean Community Trust was announced in the Minister for Revenue and Assistant Treasurer's Press Release No. 042 of 28 June 2006.
The extension for the deductibility of gifts to the Yachad Accelerated Learning Project Limited was announced in the Minister for Revenue and Assistant Treasurer's Press Release No. 042 of 28 June 2006.
Financial impact: The DGR listings will have these revenue implications:
| 2006-07 | 2007-08 | 2008-09 | 2009-10 | 2010-11 | Total |
| -$0.74m | -$3.06m | -$2.40m | -$2.84m | -$0.55m | -$9.59m |
Compliance cost impact: Nil.
Technical corrections, amendments and general improvements
Schedule 2 to this Bill makes minor corrections, amendments and general improvements to the usability of the taxation laws as part of the Government's ongoing commitment to improve the quality of those laws. Errors that are corrected include duplicated definitions, missing asterisks from defined terms and incorrect numbering.
A more substantive amendment is the formal transfer of power from the Prime Minister to the Treasurer to appoint a person to act as the Commissioner of Taxation or Second Commissioner of Taxation, during a vacancy in, or absence from, either office.
Date of effect: The amendments generally commence on Royal Assent. However, one amendment will apply retrospectively for the reasons set out in Chapter 2.
Proposal announced: Not previously announced.
Financial impact: Nil.
Compliance cost impact: Nil.