House of Representatives

Explanatory Memorandum

(Circulated by authority of the Assistant Minister for Competition, Charities and Treasury, the Hon Dr Andrew Leigh MP)

General outline and financial impact

Schedule 1 - Deductible gift recipients

Outline

Schedule 1 to the Bill amends the ITAA 1997 to:

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list Melbourne Business School Limited, Leaders Institute of South Australia Incorporated, St Patrick's Cathedral Melbourne Restoration Fund, Jewish Education Foundation (Vic) Ltd, Australian Education Research Organisation Limited, and Australians for Indigenous Constitutional Recognition Ltd as deductible gift recipients;

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extend the deductible gift recipient listings of Sydney Chevra Kadisha and Australian Women Donors Network; and

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remove the deductible gift recipient listing of the Mt Eliza Graduate School of Business and Government Limited.

Date of effect

The amendments in Schedule 1 apply to gifts made:

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on or after 1 July 2022 to the Melbourne Business School Limited;

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in the period 1 July 2022 to 30 June 2027 inclusive to Leaders Institute of South Australia Incorporated;

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in the period 1 July 2022 to 30 June 2027 inclusive to St Patrick's Cathedral Melbourne Restoration Fund;

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in the period 1 July 2021 to 30 June 2026 inclusive to Jewish Education Foundation (Vic) Ltd;

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on or after 1 July 2021 to the Australian Education Research Organisation Limited; and

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in the period 1 July 2022 to 30 June 2025 inclusive to Australians for Indigenous Constitutional Recognition Ltd.

The amendments extend the period of the listing of Sydney Chevra Kadisha so that it applies to gifts made on or after 31 December 2017 and on or before 30 June 2024.

The amendments extend the period of the listing of Australian Women Donors Network so that is applies to gifts made on or after 8 March 2018 and on or before 8 March 2028.

The amendments remove the listing of Mt Eliza Graduate School of Business and Government Limited apply on and after 1 January 2023.

Proposal announced

Schedule 1 to the Bill partially implements:

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the measure Philanthropy - updates to specifically listed deductible gift recipients from the March 2022-23 Budget; and

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the measure Philanthropy - updates to the list of specifically listed deductible gift recipients from the 2021-22 MYEFO.

Schedule 1 to the Bill fully implements the measure Philanthropy - updates to specifically listed deductible gift recipients from the October 2022-23 Budget.

Financial impact

The listing of the Jewish Education Foundation (Vic) Ltd and Australian Education Research Organisation Limited was part of the 2021-22 MYEFO and was estimated to have a negligible cost from 2022-23 to 2025-26.

All figures in this table represent amounts in $m.

.. Not zero but rounded to zero

The listing of the Melbourne Business School Limited, Leaders Institute of South Australia Incorporated, St Patrick's Cathedral Melbourne Restoration Fund, extending the listing for the Sydney Chevra Kadisha and removing the listing of Mt Eliza Graduate School of Business and Government Ltd was part of the March 2022-23 Budget and was estimated to decrease receipts by $6.3 million from 2023-24 to 2025-26.

All figures in this table represent amounts in $m.

The listing of the Australians for Indigenous Constitutional Recognition Ltd and extending the listing of Australian Women Donors Network was part of the October 2022-23 Budget and was estimated to decrease receipts by $0.8 million from 2023-24 to 2025-26.

All figures in this table represent amounts in $m.

Human rights implications

Schedule 1 does not raise any human rights issue. See Statement of Compatibility with Human Rights - Chapter 2.

Compliance cost impact

The measure has a low compliance cost impact.