Explanatory Memorandum
(Circulated by the authority of the Deputy Prime Minister and Treasurer, the Hon Wayne Swan MP)Chapter 3 - Deductible gift recipients
Outline of chapter
3.1 Schedule 3 amends the Income Tax Assessment Act 1997 (ITAA 1997) to update the list of specifically listed deductible gift recipients (DGRs).
Context of amendments
3.2 The income tax law allows income tax deductions for taxpayers who make gifts of $2 or more to DGRs. To be a DGR, an entity must fall within one of the general categories set out in Division 30 of the ITAA 1997 or be specifically listed by name in that Division.
3.3 DGR status helps eligible funds and entities attract public financial support for their activities.
Summary of new law
3.4 The amendment adds the Australian Council of Social Service Incorporated and Make a Mark Australia Incorporated as specifically listed DGRs.
Detailed explanation of new law
The Australian Council of Social Service Incorporated (ABN 72 757 927 533)
3.5 The Bill adds the Australian Council of Social Service Incorporated as a specifically listed DGR. Taxpayers may claim a deduction for gifts made to the Australian Council of Social Service Incorporated after 30 June 2013. [Schedule 3, item 1, item 4.2.15 in the table in subsection 30-45(2) of the ITAA 1997]
3.6 The purposes of the Australian Council of Social Service Incorporated are to develop and promote socially, economically and environmentally responsible public policy and action by government, community and private sectors, support the role of non-government organisations in providing assistance to vulnerable people and groups in Australia, and contribute to national policy making.
Make a Mark Australia Incorporated (ABN 24 546 286 505)
3.7 The Bill adds Make a Mark Australia Incorporated as a specifically listed DGR. Taxpayers may claim a deduction for gifts made to Make a Mark Australia Incorporated after 30 June 2013. [Schedule 3, item 2, item 9.2.14 in the table in subsection 30-80(2) of the ITAA 1997]
3.8 Make a Mark Australia Incorporated provides books and computers to primary school aged children in developing countries
Application and transitional provisions
3.9 The listings of the Australian Council of Social Service Incorporated and Make a Mark Australia Incorporated apply to gifts made after 30 June 2013.
Consequential amendments
3.10 A change has been made to update the index in Division 30 to add the new listings. [Schedule 3, items 3 and 4] STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Deductible gift recipients
3.11 This Schedule is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011 .
Overview
3.12 This Schedule amends the list of deductible gift recipients (DGRs) in Division 30 of the Income Tax Assessment Act 1997 . The income tax law allows income tax deductions for taxpayers who make gifts of $2 or more to DGRs.
3.13 The amendments add the Australian Council of Social Service Incorporated and Make a Mark Australia Incorporated as specifically listed DGRs on an ongoing basis.
Human rights implications
3.14 This Schedule does not engage any of the applicable rights or freedoms.
Conclusion
3.15 This Schedule is compatible with human rights as it does not raise any human rights issues.
Assistant Treasurer, the Hon David Bradbury
Copyright notice
© Australian Taxation Office for the Commonwealth of Australia
You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).
