Explanatory Memorandum
(Circulated by authority of the Minister for Revenue and Financial Services, the Hon Kelly O'Dwyer MP)Chapter 3 Deductible gift recipients
Outline of chapter
3.1 Schedule 3 to this Bill amends the ITAA 1997 to add six organisations as specifically listed deductible gift recipients (DGR): The Australasian College of Dermatologists, College of Intensive Care Medicine of Australia and New Zealand, The Royal Australian and New Zealand College of Ophthalmologists, Australian Science Innovations Incorporated, The Ethics Centre Incorporated and Cambridge Australia Scholarships Limited.
Context of amendments
3.2 The income tax law allows income tax deductions for taxpayers who make gifts of $2 or more to a DGR. DGRs are entities which fall within one of the general categories set out in Division 30 of the ITAA 1997 or are specifically listed by name in that Division.
3.3 DGR status helps eligible organisations attract public financial support for their activities.
Summary of new law
3.4 The amendments add The Australasian College of Dermatologists, College of Intensive Care Medicine of Australia and New Zealand, The Royal Australian and New Zealand College of Ophthalmologists, Australian Science Innovations Incorporated, The Ethics Centre Incorporated and Cambridge Australia Scholarships Limited as DGRs specifically listed by name.
3.5 This ensures that gifts of $2 or more to the organisations will be tax deductible.
Detailed explanation of new law
The Australasian College of Dermatologists
3.6 Taxpayers may claim a tax deduction for gifts to The Australian College of Dermatologists made for education or research in medical knowledge or science, from the day the bill commences. [Schedule 3, item 1, item 1.2.20 in the table in subsection 30-20(2) of the ITAA 1997; Schedule 3, item 11]
3.7 The Australasian College of Dermatologists trains and provides continuing professional development to dermatologists and supports scientific research in the field of dermatology. It also educates and advocates to the public, government and other health care professionals about dermatological matters.
College of Intensive Care Medicine of Australia and New Zealand
3.8 Taxpayers may claim a tax deduction for gifts to the College of Intensive Care Medicine of Australia and New Zealand Ltd made for education or research in medical knowledge or science, from the day the bill commences. [Schedule 3, item 1, item 1.2.21 in the table in subsection 30-20(2) of the ITAA 1997; Schedule 3, item 11]
3.9 The College of Intensive Care Medicine of Australia and New Zealand cultivates and encourages high principles of practice, ethics and professional integrity in relation to intensive care medicine practice, education, assessment, training and research. It has established fellowships and advocates on any issue which affects the ability of College members to meet their responsibilities to patients and to the community.
The Royal Australian and New Zealand College of Ophthalmologists
3.10 Taxpayers may claim a tax deduction for gifts to The Royal Australian and New Zealand College of Ophthalmologists made for education or research in medical knowledge or science, from the day the bill commences. [Schedule 3, item 1, item 1.2.22 in the table in subsection 30-20(2) of the ITAA 1997; Schedule 3, item 11]
3.11 The Royal Australian and New Zealand College of Ophthalmologists is responsible for the training and professional development of ophthalmologists in Australia and New Zealand. It leads improvements in eye health care in Australia and New Zealand through continuing professional training, education, research and advocacy. It also promotes and facilitates the improvement of eye health care internationally, particularly in developing countries, and in relation to indigenous populations.
Australian Science Innovations Incorporated
3.12 Taxpayers may claim a tax deduction for gifts made to Australian Science Innovations Incorporated from 1 January 2016. [Schedule 3, item 2, item 2.2.44 in the table in subsection 30-25(2) of the ITAA 1997]
3.13 Australian Science Innovations Incorporated (ASI) is a not-for-profit organisation whose mission is to inspire, challenge and raise the aspirations of students in science. ASI organises, fosters and promotes Australian participation in the International Biology, Chemistry, Physics and Earth Science Olympiads and related activities, as well as engaging in other activities designed to encourage science excellence in secondary education.
The Ethics Centre Incorporated
3.14 Taxpayers may claim a tax deduction for gifts made to The Ethics Centre Incorporated from 24 February 2016. [Schedule 3, item 3, item 3.2.14 in the table in subsection 30-40(2) of the ITAA 1997]
3.15 The Ethics Centre Incorporated is an independent not-for-profit organisation that has been working for over 25 years to improve lives and support communities built on strong ethical foundations. Its core objective is to relieve the significant distress faced by those struggling with complex ethical decisions and the personal and community suffering resulting from unethical behaviour.
3.16 It is expected that The Ethics Centre Incorporated will soon become a company limited by guarantee, and so its name will become The Ethics Centre Limited. When this occurs, the name will be updated in the ITAA 1997, and a commencement proclamation will be registered. If the name change does not occur within 12 months, the provisions are repealed. [Schedule 3, items 12 and 13, table item 3.2.14 in the table in subsection 30-40(2) of the ITAA1997 and table item 48AAA in the table in section 30-315 of the ITAA 1997; Schedule 3, item 14; Commencement information item 2.]
Cambridge Australia Scholarships Limited
3.17 Taxpayers may claim a tax deduction for gifts made to Cambridge Australia Scholarships Limited from 1 July 2016 to 1 July 2021. [Schedule 3, item 4, item 9.2.27 in the table in subsection 30-80(2) of the ITAA 1997]
3.18 Cambridge Australia Scholarships Limited is a not-for-profit entity established and located in Australia for the charitable purpose of advancing education by widening access to the University of Cambridge for outstanding Australian students from all backgrounds.
Consequential amendments
3.19 The index is updated for the six organisations gaining DGR specific listing. [Schedule 3, items 5, 6, 7, 8, 9 and 10, section 30-315 of the ITAA 1997; Schedule 3, item 11]
STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Deductible gift recipients
3.20 This Schedule is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview
3.21 Schedule 3 to this Bill amends the ITAA 1997 to update the list of specifically listed DGRs to include The Australasian College of Dermatologists, College of Intensive Care Medicine of Australia and New Zealand, The Royal Australian and New Zealand College of Ophthalmologists, Australian Science Innovations Incorporated, The Ethics Centre Incorporated and Cambridge Australia Scholarships Limited.
Human rights implications
3.22 This Schedule does not engage any of the applicable rights or freedoms.
Conclusion
3.23 This Schedule is compatible with human rights as it does not raise any human rights issues.