House of Representatives

Explanatory Memorandum

(Circulated by the authority of the Treasurer, the Hon Wayne Swan MP)

Chapter 4 Deductible gift recipients

Outline of chapter

4.1 Schedule 4 to this Bill amends the Income Tax Assessment Act 1997 to update the list of deductible gift recipients (DGRs) to include three new entities.

Context of amendments

4.2 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 one of the general categories set out in Division 30 of the Income Tax Assessment Act 1997 , or be listed by name under that Division.

4.3 DGR status assists eligible funds and organisations to attract public support for their activities.

Summary of new law

4.4 The amendments add three organisations to the list of specifically listed DGRs. Gifts of $2 or more that are made to organisations that are specifically listed, are tax deductible.

Detailed explanation of new law

4.5 Schedule 4 allows deductions for gifts to the organisations listed in Table 4.1. [ Schedule 4, items 1 to 3 ]

4.6 The Royal Institution of Australia Incorporated is a charitable organisation established to promote science and scientific applications for the advancement of the Australian community. The Royal Institution of Australia Incorporated is the first international affiliate of the Royal Institution of Great Britain.

4.7 Diplomacy Training Program Limited is an independent not-for-profit organisation affiliated with the Faculty of Law at the University of New South Wales. Diplomacy Training Program Limited provides training for representatives of non-government organisations in the Asia-Pacific region. Its training program focuses on human rights, good governance and the rule of law, with the aim of ending poverty, distress, suffering and violations of human rights.

4.8 Leeuwin Ocean Adventure Foundation Limited provides an educational and self-development training program to young people, mainly throughout Western Australia, which stimulates personal development, self reliance, teamwork, confidence, responsibility and community spirit. Leeuwin Ocean Adventure Foundation Limited conducts its program on the STS Leeuwin II, a three-masted barquentine tall ship, maintained as a class 1A passenger ship.

Application and transitional provisions

4.9 The amendments listing the organisations named in Table 4.1 apply from the dates of effect shown in the table.

Consequential amendments

4.10 A number of changes have been made to update the index to include the new entities. [ Schedule 4, items 4 to 6 ]