Explanatory Memorandum
Circulated By the Authority of the Treasurer, the Hon Wayne Swan 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 update the list of deductible gift recipients (DGRs) to include two new entities, and change the name of one entity.
Context of amendments
4.2 The income tax law allows taxpayers who make gifts of $2 or more to DGRs to claim income tax deductions. To be a DGR, an organisation must fall within one of the general categories set out in Division 30 of the ITAA 1997, or be listed by name under that Division.
4.3 DGR status assists eligible funds and organisations to attract public support for their activities.
Summary of new law
4.4 The amendments add two organisations to the list of specifically listed DGRs, and change the name of one. Gifts of $2 or more that are made to organisations that are specifically listed, are tax deductible.
Detailed explanation of new law
4.5 Schedule 4 allows deductions for gifts to the organisations listed in Table 4.1. [Schedule 4, item 3, items 3.2.12 and 3.2.13 in the table in subsection 30-40(2)]
| Name of Fund | Date of effect | Special conditions |
| The Green Institute Limited | 24 June 2009 | Gifts to this fund can be made after 23 June 2009. |
| United States Studies Centre Limited | 27 July 2009 | Gifts to this fund can be made after 26 July 2009. |
4.6 The Green Institute Limited provides a forum for education, exchange, research and debate on the principles of environment, social justice, non-violence and democracy. The key aim of the Green Institute is to promote those principles through training, networking, and research and policy development.
4.7 The United States Studies Centre Limited was established to promote friendship, cooperation and understanding between the peoples of the United States, Australia and New Zealand; and strengthen relations between these countries through creating a better understanding of their cultures and societies. It aims to research, debate and create new knowledge on American political, economic, social and cultural issues.
4.8 Schedule 4 changes the name of the organisation listed in table 4.2. [Schedule 4, item 1, item 2.2.21 in the table in subsection 30-25(2)]
| Current name of fund | New name of fund | Date of effect |
| Dymocks Literacy Foundation Limited | Dymocks Children's Charities Limited | 4 June 2009 |
Application and transitional provisions
4.9 The amendments listing the organisations named in Table 4.1 apply from the dates of effect shown in the table.
Consequential amendments
4.10 A number of changes have been made to update the index to include the new entities. [Schedule 4, items 2, 4 and 5, section 30-315]