House of Representatives

Explanatory Memorandum

Circulated By the Authority of the Deputy Prime Minister and Treasurer, the Hon Wayne Swan MP

Chapter 1

Deductible gift recipients

Outline of chapter

1.1 Schedule 1 to this Bill amends the Income Tax Assessment Act 1997 (ITAA 1997) to update the list of deductible gift recipients (DGRs) by changing the name of one entity and making two entities deductible gift recipients.

Context of amendments

1.2 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 ITAA 1997, or be listed by name in that Division.

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

Summary of new law

1.4 These amendments add the Charlie Perkins Trust for Children & Students, and the Roberta Sykes Indigenous Education Foundation to the list of specifically listed DGRs, and change the name of a currently listed DGR from 'Guides Australia Incorporated' to 'Girl Guides Australia'.

Detailed explanation of new law

Charlie Perkins Trust for Children & Students (ABN 24 869 741 764)

1.5 Schedule 1 allows taxpayers to claim a deduction for gifts made to the Charlie Perkins Trust for Children & Students after 2 August 2010 and before 2 August 2013. [ Schedule 1, item 4, item 2 . 2 . 39 in the table in subsection 30 - 25(2 )]

1.6 The purpose of the Charlie Perkins Trust for Children & Students is to advance the education of Aboriginal and Torres Strait Islander people through the provision of scholarships to Indigenous Australians for study at overseas institutions, such as Oxford and Cambridge University.

1.7 It is a condition of the listing that the fund meets the requirements of the scholarship general DGR category, except for the provisions requiring that it must be provided by an Australian higher education provider and not target a predetermined section of the community. Also, as a condition of listing, that the Australian Educational International (AEI) raise no objections to the institutions to which the scholarship fund seeks to send scholars, and that the fund advise the Australian Government annually on those institutions to which scholars have been sent in a given year.

Roberta Sykes Indigenous Education Foundation (ABN 99 950 620 671)

1.8 This Schedule allows taxpayers to claim a deduction for gifts made to the Roberta Sykes Indigenous Education Foundation after 2 August 2010 and before 2 August 2013. [ Schedule 1, item 4, item 2 . 2 . 40 in the table in subsection 30 - 25(2 )]

1.9 The Roberta Sykes Indigenous Education Foundation works to advance the education and life opportunities for Aboriginal and Torres Strait Islanders, and provides additional assistance to female Indigenous scholars undertaking programs overseas, such as assisting with the cost of relocating families and partners.

1.10 It is a condition of the listing that the fund meets the requirements of the scholarship general DGR category, except for the provisions requiring that it must be provided by an Australian higher education provider and not target a predetermined section of the community. Also, as a condition of listing, that the AEI raise no objections to the institutions to which the scholarship fund seeks to send scholars, and that the fund advise the Australian Government annually on those institutions to which scholars have been sent in a given year.

Girl Guides Australia (ABN 62 477 364 942)

1.11 This Schedule also changes the name of 'Guides Australia Incorporated' to 'Girl Guides Australia'. [ Schedule 1, items 1 and 2, items 10 . 2 . 2 and 10 . 2 . 3 in the table in section 30 - 90 ]

1.12 The purpose and operation of the organisation has not changed.

Consequential amendments

1.13 Changes have been made to update the index in Division 30 of the ITAA 1997 to add Charlie Perkins Trust for Children & Students and the Roberta Sykes Indigenous Education Foundation. [ Schedule 1, items 5 and 6, items 30A and 97AA in the table in section 30 - 315 ].

1.14 Changes have been made to update the index in Division 30 to reflect the change in name to Girl Guides Australia. [ Schedule 1, item 3, item 53A in the table in section 30 - 315 ]