House of Representatives

Explanatory Memorandum

(Circulated by the authority of the Deputy Prime Minister and Treasurer, the Hon Wayne Swan MP)

Chapter 7 - Deductible gift recipients

Outline of chapter

7.1 Schedule 5 to this Bill amends the Income Tax Assessment Act 1997 (ITAA 1997) to update the list of deductible gift recipients (DGRs) by adding one entity as a DGR, and changing the name of another entity already specifically listed.

7.2 All legislative references in this chapter are to the ITAA 1997 unless otherwise stated.

Context of amendments

7.3 The income tax law allows income tax deductions for taxpayers who make gifts of $2 or more to DGRs. To be a DGR, an organisation must fall within one of the general categories set out in Division 30 or be specifically listed by name in that Division.

7.4 DGR status assists eligible funds and organisations to attract public support for their activities. Summary of new law

7.5 These amendments add Rhodes Trust in Australia as a DGR, and amend the name of 'Playgroup Australia Incorporated' to 'Playgroup Australia Limited'.

Detailed explanation of new law

Rhodes Trust in Australia (ABN 24 218 682 610)

7.6 Taxpayers may claim a deduction for gifts made to Rhodes Trust in Australia after 20 October 2011. [Schedule 5, item 2, item 9.2.24 in the table in subsection 30-80(2)]

7.7 The purpose of Rhodes Trust in Australia is to raise monies in Australia to augment the existing Rhodes Scholarship program at Oxford University in the United Kingdom. All monies raised in Australia will be used to provide scholarships to Australians to undertake tertiary education at Oxford University in the United Kingdom.

Playgroup Australia Limited (ABN 31 142 795 695)

7.8 Playgroup Australia is currently listed as a DGR in the table in subsection 30-70(2) under Playgroup Australia Incorporated (ABN 22 512 105 603).

7.9 This Schedule changes the name of 'Playgroup Australia Incorporated' to 'Playgroup Australia Limited'. The entity has undertaken a restructure to become a company limited by guarantee, and has changed its name to reflect this. There has been no change to the objectives or purposes of Playgroup Australia, or the purposes for which it has been specifically listed as a DGR. [Schedule 5, item 1, item 8.2.12 in the table in section 30-70(2)]

Consequential amendments

7.10 Changes have been made to update the index in Division 30 to add Rhodes Trust in Australia, and to reflect the change in name of Playgroup Australia Limited. [Schedule 5, items 3 and 4, items 97AAA and 86AA in the table in section 30-315]