Explanatory Memorandum
(Circulated by authority of the Treasurer, the Hon Peter Costello MP)Chapter 4 Deductible gift recipients
Outline of chapter
4.1 Schedule 4 to this Bill amends the Income Tax Assessment Act 1997 (ITAA 1997) to extend the period for which deductions are allowed for gifts to certain funds that have time limited deductible gift recipient (DGR) status.
Context of amendments
4.2 The income tax law allows taxpayers to claim income tax deductions for gifts of $2 or more to DGRs. To be a DGR, an organisation must fall within a category of organisations set out in Division 30 of the ITAA 1997, or be listed by name under that Division.
4.3 DGR status assists relevant funds and organisations to attract public support for their activities.
Summary of new law
4.4 These amendments extend the period for which deductions are allowed for gifts to certain funds that have time limited DGR status. The extension will support the completion of work of the relevant organisation.
Comparison of key features of new law and current law
4.5 Schedule 4 extends the period for which deductions are allowed for gifts to the organisation listed in Table 4.1. [ Schedule 4, items 1 to 4 ]
| Name of fund | New special conditions | Current special conditions |
| Dunn and Lewis Youth Development Foundation Limited | The gift must be made on or after 10 November 2003 and before 1 January 2008. | The gift must be made on or after 10 November 2003 and before 1 January 2007. |
| The Rotary Leadership Victoria Australian Embassy for Timor-Leste Fund Limited | The gift must be made after 7 November 2004 and before 1 January 2010. | The gift must be made after 7 November 2004 and before 8 November 2006. |
| St George's Cathedral Restoration Fund | The gift must be made after 27 September 2004 and before 1 January 2008. | The gift must be made after 27 September 2004 and before 28 September 2006. |
| St Michael's Church Restoration Fund | The gift must be made after 23 January 2006 and before 24 February 2008. | The gift must be made after 23 January 2006 and before 24 February 2007. |
4.6 The Dunn and Lewis Youth Development Foundation Limited was granted a 12-month extension to support the construction of a complex that will serve as a memorial, a recreational outlet and a vocational training centre to link young people in Ulladulla with traineeships and other employment opportunities. [ Schedule 4, item 2 ]
4.7 The Rotary Leadership Victoria Australian Embassy for Timor-Leste Fund Limited was granted an extension to assist the Rotary Club of Melbourne and Leadership Victoria, to raise funds to complete the construction of an embassy for East Timor in Canberra on land provided by the Government. [ Schedule 4, item 1 ]
4.8 St George's Cathedral Restoration Fund was granted an extension to assist St George's Anglican Cathedral in Perth to raise funds to complete the urgent and critical components of the reconstruction and conservation work on the Cathedral and Burt Memorial Hall. [ Schedule 4, item 3 ]
4.9 St Michael's Church Restoration Fund was granted a 12-month extension to assist St Michael's Uniting Church in Melbourne to support urgent critical repair work to the Church building. [ Schedule 4, item 4 ]