Explanatory Memorandum
(Circulated by the authority of the Deputy Prime Minister and Treasurer, the Hon Wayne Swan MP)Chapter 3 - Deductible gift recipients
Outline of chapter
3.1 Schedule 3 to this Bill amends the Income Tax Assessment Act 1997 (ITAA 1997) to update the list of deductible gift recipients (DGRs) by adding two entities as DGRs, changing the name of one entity, and removing two other entities from the list.
Context of amendments
3.2 The income tax law allows income tax deductions for taxpayers who make gifts of $2 or more to DGRs. 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 specifically listed by name in that Division.
3.3 DGR status assists eligible funds and organisations to attract public support for their activities.
Summary of new law
3.4 The amendments add the New Zealand Government's Christchurch Earthquake Appeal Trust, and the Cancer Australia Gift Fund as DGRs, amend the name of 'WorldSkills Australia Inc' to 'WorldSkills Australia', and repeal the now redundant listings of the National Breast Cancer Centre Gift Fund and The Bionic Ear Institute.
Detailed explanation of new law
New Zealand Government's Christchurch Earthquake Appeal Trust (New Zealand charity number CC46329)
3.5 Taxpayers may claim a deduction for gifts made to the New Zealand Government's Christchurch Earthquake Appeal Trust after 21 March 2011 and before 22 March 2013. [ Schedule 3, item 6, item 9 . 2 . 24 in the table in subsection 30 - 80(2 )]
3.6 The purpose of the New Zealand Government's Christchurch Earthquake Appeal Trust is to help the communities, families and people of Christchurch and the Canterbury region in the wake of the devastating earthquake which hit Christchurch on 22 February 2011.
Cancer Australia Gift Fund (ABN 21 075 951 918)
3.7 Taxpayers may claim a deduction for gifts made to the Cancer Australia Gift Fund after 8 June 2011. This Gift Fund will be set up as a separate cost centre within Cancer Australia. [ Schedule 3, item 5, item 1 . 2 . 19 in the table in subsection 30 - 20(2 )]
3.8 The Government announced the amalgamation of the National Breast and Ovarian Cancer Centre (NBOCC) with Cancer Australia on 15 June 2010. DGR specific listing for the Cancer Australia Gift Fund is required to give effect to this merger, and allow National Breast Cancer Centre Gift Fund assets to be transferred to the joint entity.
3.9 The specific listing of the Cancer Australia Gift Fund is subject to special conditions; namely that it will only use donated funds to work directly with stakeholders to improve breast cancer outcomes for women, reduce mortalities from breast cancer, and improve the wellbeing of women diagnosed with the disease.
National Breast Cancer Centre Gift Fund (ABN 85 094 118 902)
3.10 The National Breast Cancer Centre Gift Fund is currently listed as a DGR.
3.11 This Schedule repeals the National Breast Cancer Centre Gift Fund, with effect from 1 August 2011. [ Schedule 3, item 3, item 1 . 2 . 16 in the table in subsection 30 - 20(2 )]
3.12 This allows the assets of this Gift Fund to be transferred to the Cancer Australia Gift Fund. As the Cancer Australia Gift Fund will be specifically listed as a DGR, the National Breast Cancer Centre Gift Fund DGR listing is no longer needed and is therefore being repealed.
WorldSkills Australia (ABN 43 147 075 714)
3.13 WorldSkills Australia is currently listed as a DGR in the table in section 30-65.
3.14 This Schedule changes the name of 'WorldSkills Australia Inc' to 'WorldSkills Australia'. [ Schedule 3, items 1 and 2, item 7 . 2 . 3 in the table in section 30 - 65 ]
3.15 The purpose and operation of the organisation has not changed.
The Bionic Ear Institute (ABN 56 006 580 883)
3.16 The Bionic Ear Institute is currently listed in the table in subsection 30-20(2).
3.17 This Schedule repeals The Bionic Ear Institute as a specifically listed DGR, as effective from 10 November 2010. This Institute was endorsed as a DGR under the general category of health promotion, and therefore the specific listing is redundant. [ Schedule 3, item 4, item 1 . 2 . 17 in the table in subsection 30 - 20(2 )]
Consequential amendments
3.18 Changes have been made to update the index in Division 30 to add the New Zealand Government's Christchurch Earthquake Appeal Trust, and the Cancer Australia Gift Fund, and to reflect the change in name of WorldSkills Australia. [ Schedule 3, items 1, 2, 5 and 6, item 126 in the table in section 30 - 315 ]