House of Representatives

Explanatory Memorandum

(Circulated by the authority of the Treasurer, the Hon J. B. Hockey MP)

Chapter 5 - Deductible gift recipients - extension

Outline of chapter

5.1 Schedule 5 to this Bill amends the Income Tax Assessment Act 1997 (ITAA 1997) to update the list of specifically listed deductible gift recipients (DGRs).

Context of amendments

5.2 The income tax law allows income tax deductions for taxpayers who make gifts of two dollars 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 be name in that Division.

5.3 DGR status helps eligible entities attract public financial support for their activities.

Summary of new law

5.4 The amendments extend the listing of the Australian Peacekeeping Memorial Project Incorporated and the National Boer War Memorial Association Incorporated by three years.

Detailed explanation of new law

Australian Peacekeeping Memorial Project Incorporated (ABN 56 102 846 791)

5.5 Taxpayers may claim a tax deduction for gifts made to the Australian Peacekeeping Memorial Project Incorporated after 31 December 2012 and before 1 January 2018. [Schedule 5, item 1, table item 5.2.32 in subsection 30-50(2) of the ITAA 1997]

5.6 The Australian Peacekeeping Memorial Project Incorporated is seeking donations to build a memorial on Anzac Parade in Canberra, ACT to recognise the services of Australians who have served in peacekeeping missions.

National Boer War Memorial Association Incorporated (ABN 29 293 433 202)

5.7 Tax payers may claim a tax deduction for gifts made to the National Boer War Memorial Association Incorporated after 31 December 2012 and before 1 January 2018. [Schedule 5, item 1, table item 5.2.32 in subsection 30-50(2) of the ITAA 1997]

5.8 The National Boer War Memorial Association Incorporated is seeking donations to commemorate Australian service in the Boer War (1899 to 1902) by constructing a memorial on Anzac Parade in Canberra, ACT.

Consequential amendments

5.9 The provisions that automatically repeal the DGR listings after they cease to have effect have also been extended to account for the extension period of the listings. The DGR listings will automatically be repealed on 1 July 2022, which aligns with the general amendment periods for most taxpayers. [Schedule 5, items 2 and 3, table item 8 in subsection 2(1) and heading in Division 1 of Part 2 of Schedule 4 of the Tax and Superannuation Laws Amendment (2013 Measures No. 2) Act 2013]

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Schedule 5 - Deductible gift recipients - extension

5.10 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

5.11 The income tax law allows income tax deductions for taxpayers who make gifts of two dollars 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.

5.12 This Schedule extends the listing of the Australian Peacekeeping Memorial Project Incorporated and the National Boer War Memorial Association Incorporated by three years. This measure allows taxpayers to claim a tax deduction for gifts made to these organisations after 31 December 2012 and before 1 January 2018.

Human rights implications

5.13 This Schedule does not engage any of the applicable rights or freedoms.

Conclusion

5.14 This Schedule is compatible with human rights as it does not raise any human rights issues.