Explanatory Memorandum
(Circulated by authority of the Assistant Treasurer, the Hon Stuart Robert MP)Chapter 2 Deductible gift recipients
Outline of chapter
2.1 Schedule 2 to this Bill amends the ITAA 1997 to update the list of specifically listed DGRs to include:
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- Australian Sports Foundation Charitable Fund;
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- Australian Women Donors Network;
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- Paul Ramsay Foundation Limited;
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- The Q Foundation Trust;
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- Smile Like Drake Foundation Limited; and
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- Victorian Pride Centre Ltd.
Context of amendments
Deductible gift recipient status
2.2 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.
2.3 DGR status helps eligible organisations attract public financial support for their activities.
Australian Sports Foundation Charitable Fund
2.4 Australian Sports Foundation Charitable Fund is a registered charity established to support projects where sport is the vehicle to achieve charitable aims.
Australian Women Donors Network
2.5 Australian Women Donors Network is a registered charity established to provide a voice for gender inclusive philanthropy across all focus areas including education, health, disability, youth and the arts.
Paul Ramsay Foundation Limited
2.6 Paul Ramsay Foundation Limited is a registered charity established to be the recipient of the Ramsay bequest from the Paul Ramsay Foundation to pursue one or more of the following charitable purposes in Australia: advancing health, advancing education and advancing social or public welfare.
The Q Foundation Trust
2.7 The Q Foundation Trust is a registered charity with the principal purpose of advancing education and engagement in science and technology in Australia.
Smile Like Drake Foundation Limited
2.8 Smile Like Drake Foundation Limited is a registered charity that supports research into preventing drowning and provides water safety education programs for schools.
Victorian Pride Centre Ltd
2.9 Victorian Pride Centre Ltd is a registered charity established to own and operate a centre in the State of Victoria to facilitate and host support services, facilities and resources for the lesbian, gay, bisexual, transgender, and/or intersex community.
Summary of new law
2.10 The amendments made by Schedule 2 make the Australian Sports Foundation Charitable Fund, Australian Women Donors Network, Paul Ramsay Foundation Limited, The Q Foundation Trust, Smile Like Drake Foundation Limited and Victorian Pride Centre Ltd DGRs.
Detailed explanation of new law
Australian Sports Foundation Charitable Fund (ABN 97 179 064 897)
2.11 Taxpayer may claim an income tax deduction for gifts of $2 or more to the Australian Sports Foundation Charitable Fund provided the gift complies with the existing requirements of the income tax law. [Schedule 2, item 3, item 10.2.9 in the table in section 30-90 of the ITAA 1997]
2.12 This amendment ensures that the Australian Sports Foundation Charitable Fund receives appropriate support through the Commonwealth tax system for supporting projects where sport is the vehicle to achieve charitable aims.
Australian Women Donors Network (ABN 28 141 197 471)
2.13 Taxpayers may claim an income tax deduction for gifts of $2 or more to the Australian Women Donors Network provided the gift complies with the existing requirements of the income tax law. [Schedule 2, item 4, table item 11.2.11 in section 30-95 of the ITAA 1997]
2.14 This amendment ensures that the Australian Women Donors Network receives appropriate support through the Commonwealth tax system for providing a voice for gender inclusive philanthropy across all focus areas.
Paul Ramsay Foundation Limited (ABN 32 623 132 472)
2.15 Taxpayers may claim an income tax deduction for gifts of $2 or more to the Paul Ramsay Foundation Limited provided the gift complies with the existing requirements of the income tax law. [Schedule 2, item 5, table item 13.2.24 in section 30-105 of the ITAA 1997]
2.16 This amendment ensures that the Paul Ramsay Foundation Limited receives appropriate support through the Commonwealth tax system for pursuing its charitable purposes in Australia.
The Q Foundation Trust (ABN 95 941 852 608)
2.17 Taxpayers may claim an income tax deduction for gifts of $2 or more to The Q Foundation Trust provided the gift complies with the existing requirements of the income tax law. [Schedule 2, item 1, table item 2.2.46 in subsection 30-25(2) of the ITAA 1997]
2.18 This amendment ensures that The Q Foundation Trust receives appropriate support through the Commonwealth tax system for advancing education and engagement in science and technology in Australia.
Smile Like Drake Foundation Limited (ABN 33 164 893 261)
2.19 Taxpayers may claim an income tax deduction for gifts of $2 or more to the Smile Like Drake Foundation Limited provided the gift complies with the existing requirements of the income tax law. [Schedule 2, item 1, table item 2.2.45 in subsection 30-25(2) of the ITAA 1997]
2.20 This amendment ensures that the Smile Like Drake Foundation Limited receives appropriate support through the Commonwealth tax system for supporting research into preventing drowning and providing water safety education programs for schools.
Victorian Pride Centre Ltd (ABN 68 615 432 838)
2.21 Taxpayers may claim an income tax deduction for gifts of $2 or more to the Victorian Pride Centre Ltd provided the gift complies with the existing requirements of the income tax law. [Schedule 2, item 2, table item 4.2.44 in subsection 30-45(2) of the ITAA 1997]
2.22 This amendment ensures that the Victorian Pride Centre Ltd receives appropriate support through the Commonwealth tax system for facilitating and hosting support services, facilities and resources for the lesbian, gay, bisexual, transgender, and intersex community.
Consequential amendments
2.23 Schedule 2 also updates the index of DGRs in Division 30 of the ITAA 1997 to reflect the new listings. [Schedule 2, items 6 to 10, table items 27AAAA, 27AAAB, 83, 94AA, 111AB and 121B in section 30-315 of the ITAA 1997]
Application and transitional provisions
2.24 The amendments apply to gifts of $2 or more to the Australian Sports Foundation Charitable Fund after 30 June 2018 and before 1 July 2023. [Schedule 2, item 3, third column of table item 10.2.9 in section 30-90 of the ITAA 1997]
2.25 The amendments apply to gifts of $2 or more to the Australian Women Donors Network after 8 March 2018 and before 9 March 2023. [Schedule 2, item 4, third column of table item 11.2.11 in section 30-95 of the ITAA 1997]
2.26 The amendments apply to gifts of $2 or more to the Paul Ramsay Foundation Limited after 30 June 2018 and before 1 July 2020. [Schedule 2, item 5, third column of table item 13.2.24 in section 30-105 of the ITAA 1997]
2.27 The amendments apply to gifts of $2 or more to The Q Foundation Trust after 31 December 2017 and before 1 January 2023. [Schedule 2, item 1, third column of table item 2.2.46 in subsection 30-25(2) of the ITAA 1997]
2.28 The amendments apply to gifts of $2 or more to the Smile Like Drake Foundation Limited after 8 March 2018 and before 9 March 2023. [Schedule 2, item 1, third column of table item 2.2.45 in subsection 30-25(2) of the ITAA 1997]
2.29 The amendments apply to gifts of $2 or more to the Victorian Pride Centre Ltd after 8 March 2018 and before 9 March 2023. [Schedule 2, item 2, third column of table item 4.2.44 in subsection 30-45(2) of the ITAA 1997]
2.30 The amendments apply retrospectively. This ensures that gifts that have been made to the entities to which this Schedule applies qualify for income tax deductions from the above application dates provided the gifts comply with all requirements of the income tax law. The changes are wholly beneficial both to taxpayers making gifts of $2 or more to these DGRs and also to the DGR entities that receive these gifts.
2.31 The amendments commence on the first day of the first quarterly period following Royal Assent. [Clause 2]