Explanatory Memorandum
(Circulated by authority of the Assistant Treasurer, Minister for Housing and Minister for Homelessness, Social and Community Housing, the Hon Michael Sukkar MP)Chapter 5 - Deductible gift recipients-new specific recipients
Outline of chapter
5.1 Schedule 5 to the Bill amends the ITAA 1997 to allow the following entities to be deductible gift recipients under the income tax law:
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- Alliance for Journalists' Freedom Ltd;
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- The Andy Thomas Space Foundation Limited;
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- Youthsafe;
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- RAS Foundation Limited;
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- The Judith Neilson Institute for Journalism and Ideas; and
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- The Great Synagogue Foundation.
5.2 Schedule 5 to the Bill amends the ITAA 1997 to extend the period in which the following entities are deductible gift recipients under the income tax law:
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- The Centre for Entrepreneurial Research and Innovation Limited; and
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- Sydney Chevra Kadisha.
Context of amendments
5.3 The income tax law allows income tax deductions for taxpayers who make gifts of $2 or more to a deductible gift recipient. Deductible gift recipients are entities that 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. Legislative references in this Chapter are to the ITAA 1997 unless otherwise specified.
5.4 Deductible gift recipient status helps eligible organisations attract public financial support for their activities.
5.5 Alliance for Journalists' Freedom Ltd (ABN 59 622 234 799) is a charity that promotes media freedom and the right of journalists to report.
5.6 The Andy Thomas Space Foundation Limited (ABN 41 642 332 321) is a charity that promotes space-related education and training.
5.7 Youthsafe (ABN 91 068 371 022) is a charity that provides industry training and community support in the field of youth safety and wellbeing.
5.8 RAS Foundation Limited (ABN 99 637 243 853) is a charity committed to supporting agricultural development and rural communities in Australia.
5.9 The Judith Neilson Institute for Journalism and Ideas (ABN 97 518 065 568) is a charity that supports quality journalism and storytelling through grants, education initiatives and events.
5.10 The Great Synagogue Foundation (ABN 45 147 003 449) is a charity that maintains and preserves the building and facilities of The Great Synagogue.
5.11 The Centre for Entrepreneurial Research and Innovation Limited (ABN 46 606 007 952) is a charity that works with universities and research institutes to promote entrepreneurialism, in addition to commercialising research and innovative ideas.
5.12 Sydney Chevra Kadisha (ABN 65 000 029 541) is a charity that provides and attends to all funeral arrangements and services in accordance with Jewish law.
Summary of new law
5.13 Schedule 5 to the Bill amends the ITAA 1997 to allow the following entities to be deductible gift recipients under the income tax law:
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- Alliance for Journalists' Freedom Ltd;
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- The Andy Thomas Space Foundation Limited;
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- Youthsafe;
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- RAS Foundation Limited;
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- The Judith Neilson Institute for Journalism and Ideas; and
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- The Great Synagogue Foundation.
5.14 Schedule 5 to the Bill amends the ITAA 1997 to extend the period the following entities are deductible gift recipients under the income tax law:
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- The Centre for Entrepreneurial Research and Innovation Limited; and
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- Sydney Chevra Kadisha.
Detailed explanation of new law
5.15 Taxpayers may claim an income tax deduction for gifts made to Alliance for Journalists' Freedom Ltd (ABN 59 622 234 799) provided the gift complies with the existing requirements of the income tax law. This amendment ensures that Alliance for Journalists' Freedom Ltd receives appropriate support through the Commonwealth tax system. [Schedule 5, item 3, table item 4.2.49 in the table in section 30-45(2)]
5.16 Taxpayers may claim an income tax deduction for gifts made to The Andy Thomas Space Foundation Limited (ABN 41 642 332 321) provided the gift complies with the existing requirements of the income tax law. This amendment ensures that The Andy Thomas Space Foundation Limited receives appropriate support through the Commonwealth tax system. [Schedule 5, item 1, table item 2.2.51 in the table in section 30-25(2)]
5.17 Taxpayers may claim an income tax deduction for gifts made to Youthsafe (ABN 91 068 371 022) provided the gift complies with the existing requirements of the income tax law. This amendment ensures that Youthsafe receives appropriate support through the Commonwealth tax system. [Schedule 5, item 3, table item 4.2.50 in the table in section 30-45(2)]
5.18 Taxpayers may claim an income tax deduction for gifts made to RAS Foundation Limited (ABN 99 637 243 853) provided the gift complies with the existing requirements of the income tax law. This amendment ensures that RAS Foundation Limited receives appropriate support through the Commonwealth tax system. [Schedule 5, item 5, table item 13.2.27 in the table in section 30-105]
5.19 Taxpayers may claim an income tax deduction for gifts made to The Judith Neilson Institute for Journalism and Ideas (ABN 97 518 065 568) provided the gift complies with the existing requirements of the income tax law. This amendment ensures that The Judith Neilson Institute for Journalism and Ideas receives appropriate support through the Commonwealth tax system. [Schedule 5, item 1, table item 2.2.52 in the table in section 30-25(2)]
5.20 Taxpayers may claim an income tax deduction for gifts made to The Great Synagogue Foundation (ABN 45 147 003 449) provided the gift complies with the existing requirements of the income tax law. This amendment ensures that The Great Synagogue Foundation receives appropriate support through the Commonwealth tax system. [Schedule 5, item 5, table item 13.2.28 in the table in section 30-105]
5.21 Taxpayers may claim an income tax deduction for gifts made to The Centre for Entrepreneurial Research and Innovation Limited (ABN 46 606 007 952) for a longer period than initially provided when it was first listed as a deductible gift recipient provided the gift complies with the existing requirements of the income tax law. This amendment ensures that The Centre for Entrepreneurial Research and Innovation Limited continues to receive appropriate ongoing support through the Commonwealth tax system. [Schedule 5, item 2, table item 3.2.15 in the table in section 30-40(2)]
5.22 Taxpayers may claim an income tax deduction for gifts made to Sydney Chevra Kadisha (ABN 65 000 029 541) for a longer period than initially provided when it was first listed as a deductible gift recipient provided the gift complies with the existing requirements of the income tax law. This amendment ensures that Sydney Chevra Kadisha continues to receive appropriate support through the Commonwealth tax system. [Schedule 5, item 4, table item 12.2.5 in the table in section 30-100(2)]
Consequential amendments
5.23 Schedule 5 also amends the index for Division 30 of the ITAA 1997 to reflect the new listings. [Schedule 5, items 6 to 11, table items 2ACB, 4AA, 52B, 64AA, 94AC and 129 in the table in section 30-315]
Application and transitional provisions
Commencement
5.24 The amendments commence on the first day of the quarter following Royal Assent. [Clause 2]
Application
5.25 The following listings apply to gifts made on and after 1 July 2020:
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- Alliance for Journalists' Freedom Ltd;
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- The Andy Thomas Space Foundation Limited;
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- Youthsafe;
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- RAS Foundation Limited; and
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- The Judith Neilson Institute for Journalism and Ideas.
5.26 The listing of The Great Synagogue Foundation applies to gifts made on and after 1 July 2020 and before 1 July 2025.
5.27 The following listing of The Centre for Entrepreneurial Research and Innovation Limited applies to gifts made on and after 2 January 2017.
5.28 The listing of the Sydney Chevra Kadisha applies to gifts made on and after 1 January 2018 and before 1 July 2022.