House of Representatives

Explanatory Memorandum

(Circulated by authority of the Treasurer, the Hon Peter Costello, MP)

Chapter 11 - Specific gift recipients

Outline of chapter

11.1 Schedule 11 to this bill amends the ITAA 1997 to update the lists of specifically-listed deductible gift recipients (DGRs).

Context of amendments

11.2 Income tax law allows taxpayers to claim income tax deductions for certain gifts to DGRs. To be a DGR, an organisation must fall within a category of organisations set out in Division 30 of the ITAA 1997, or be specifically-listed under that Division.

11.3 The addition of organisations to the lists of specifically-listed DGRs will assist these organisations to attract public support for their activities.

Summary of new law

11.4 The amendments will allow income tax deductions for certain gifts to the value of $2 or more made to the funds and organisations listed in Table 11.1 from, and including, the date of effect.

11.5 The ITAA 1997 is also amended so that the period for which deductions are allowed for gifts made to Bowral Vietnam Memorial Walk Trust Incorporated is extended for an additional two years from 16 August 2003.

Detailed explanation of new law

11.6 The funds, authorities and institutions discussed in paragraphs 11.8 to 11.10 have been included in the gift provisions of the ITAA 1997. Gifts of $2 or more to these organisations will allow a donor to claim the gift as an income tax deduction.

11.7 The Dunn and Lewis Youth Development Foundation Limited was established to build a complex to serve as a memorial, as a recreational outlet and as a vocational training centre to link young people in Ulladulla with traineeships and other employment opportunities. [Schedule 11, items 4 and 6]

11.8 Crime Stoppers South Australia Incorporated was established to encourage community involvement in the apprehension and conviction of criminals, and the reduction in crime by the provision of information to the proper authorities. [Schedule 11, items 2 and 5]

11.9 Country Education Foundation of Australia Limited was established to help provide grants to disadvantaged young school leavers to help them into further education and to improve their career opportunities. [Schedule 11, items 1 and 5]

Extending an end date to deductibility

11.10 The ITAA 1997 is amended so that the period for which deductions are allowed for gifts made to the Bowral Vietnam Memorial Walk Trust Incorporated is extended for an additional two years from 16 August 2003. The Bowral Vietnam Memorial Walk Trust Incorporated was established to raise funds to provide a memorial for the recognition, comfort and benefit of the veterans of the Vietnam War and their families. [Schedule 11, item 3]

Application and transitional provisions

11.11 The amendments to include organisations in the gift provisions of the ITAA 1997 apply from the date of effect shown in Table 11.1.