Senate

Supplementary Explanatory Memorandum

(Circulated by authority of the Assistant Treasurer, the Hon. Stuart Robert MP)

General outline and financial impact

Amendments to the Treasury Laws Amendment (2018 Measures No. 4) Bill 2018: Further deductible gift recipients

The amendments insert Schedule 10 to the Bill that amends the ITAA 1997 to update the list of specifically listed DGRs to include:

•

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.

The amendments to Schedule 9 to the Bill extend the end date for DGR listing for Sydney Chevra Kadisha from 31 December 2019 until 31 December 2020.

Date of effect: The amendments apply to gifts made to Australian Sports Foundation Charitable Fund after 30 June 2018 and before 1 July 2023.

The amendments apply to gifts made to Australian Women Donors Network, Smile Like Drake Foundation Limited and Victorian Pride Centre Ltd after 8 March 2018 and before 9 March 2023.

The amendments apply to gifts made to Paul Ramsay Foundation Limited after 30 June 2018 and before 1 July 2020.

The amendments apply to gifts made to The Q Foundation Trust after 31 December 2017 and before 1 January 2023.

The amendments apply to gifts made to Sydney Chevra Kadisha to extend the end date from 31 December 2019 until 31 December 2020.

Proposal announced: The amendments fully implement the measure 'Philanthropy - updates to the list of specifically listed deductible gift recipients' from the 2018-19 Budget. The amendment to extend the end date from 31 December 2019 until 31 December 2020 for Sydney Chevra Kadisha to be listed as a DGR has not previously been announced.

Financial impact: As at the 2018-19 Budget, the cost to revenue of adding the six new DGRs was estimated to be $0.6 million over the forward estimates period to 2021-22. Extending Sydney Chevra Kadisha's DGR status has an estimated cost to revenue of $0.1 million. The total estimated financial impact comprises ($m):

- nil .. not zero but rounded to zero

Human rights implications: The amendments do not raise any human rights issues. See Statement of Compatibility with Human Rights - Chapter 3, paragraphs 3.1 to 3.5.

Compliance cost impact: Nil.

Amendments to the Treasury Laws Amendment (2018 Measures No. 4) Bill 2018: Extending DGR status to entities promoting Indigenous languages

The amendments insert Schedule 11 to this Bill to amend the ITAA 1997 to enable entities that promote Indigenous languages to be endorsed as a DGR.

Date of effect: The amendments commence from 1 July 2019.

Proposal announced: The amendments implement the measure 'Extending deductible gift recipient eligibility to organisations promoting Indigenous languages' which was announced in the 2017-18 Mid-Year Economic and Fiscal Outlook.

Financial impact: As at the 2017-18 Mid-Year Economic and Fiscal Outlook, this measure was estimated to have a negligible cost to revenue over the then forward estimates period comprising:

- nil

.. not zero but rounded to zero

Human rights implications: The amendments do not raise any human rights issues. See Statement of Compatibility with Human Rights - Chapter 3, paragraphs 3.6 to 3.12.

Compliance cost impact: Nil.