Senate

Revised Explanatory Memorandum

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

Chapter 9 - Deductible gift recipients

Outline of chapter

9.1 Schedule 9 to this Bill amends the Income Tax Assessment Act 1997 (ITAA 1997) to update the list of deductible gift recipients (DGRs) to include nine new entities and to extend the time period of DGR status for one entity.

Context of amendments

9.2 The income tax law allows taxpayers who make gifts of $2 or more to DGRs to claim income tax deductions. To be a DGR, an organisation must fall within a category of organisations set out in Division 30 of the ITAA 1997, or be listed by name under that Division.

9.3 DGR status assists relevant funds and organisations to attract public support for their activities.

Summary of new law

9.4 These amendments add nine organisations to the list of specifically listed DGRs and extend the time period for which deductions are allowed for gifts to the Shrine of Remembrance Restoration and Development Trust. Gifts of $2 or more, made to these entities within each entity's eligible time period, are tax deductible.

Detailed explanation of new law

9.5 Schedule 9 lists the organisations in Table 9.1 as DGRs. [Schedule 9, items 1, 4 to 6]

Table 9.1

9.6 The Bathurst War Memorial Carillon Public Fund Trust was established to raise funds to rebuild the Bathurst War Memorial Carillon to its original plans following damage caused by lightning in 2001. The Carillon was built in 1933 as a memorial to the men of Bathurst and district who served during the First World War, and in all conflicts since. [Schedule 9, items 4 to 5]

9.7 Kidsafe is a non-government, not-for-profit charitable organisation dedicated to preventing unintended injuries and reducing resulting deaths to children associated with childhood accidents. The national body, Child Accident Prevention Foundation of Australia is listed as a DGR. As the result of a restructure of the foundation, the individual state and territory associations will now be listed to better serve the community. [Schedule 9, items 1 and 6]

Extending periods for which gifts are deductible

9.8 Schedule 9 extends the period for which deductions are allowed for gifts to the organisation listed in Table 9.2. [Schedule 9, item 2]

Table 9.2

9.9 The Shrine of Remembrance in Melbourne, built between 1928 and 1934, is Victoria's largest war memorial to the men and women who served Australia in armed conflicts and in peacekeeping operations throughout our nation's history. The Shrine of Remembrance Restoration and Development Trust was established to raise funds for the restoration and development of the Shrine of Remembrance. [Schedule 9, item 2]

Application and transitional provisions

9.10 The amendments to list the organisations in Table 9.1 and Table 9.2 apply from the dates of effect shown in those tables. [Schedule 9, items 1 to 6]