House of Representatives

Explanatory Memorandum

(Circulated by authority of the Treasurer, the Hon. Josh Frydenberg MP)

Chapter 3: Deductible gift recipients-new specific recipients

Outline of chapter

3.1 Schedule 3 to the main Bill amends the ITAA 1997 to allow the following entities to be deductible gift recipients under the income tax law:

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Royal Humane Society of New South Wales Incorporated;

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Perth Korean War Memorial Committee Incorporated;

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Greek Orthodox Archdiocese of Australia Consolidated Trust Cathedral of the Annunciation of our Lady Restoration Fund;

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The Australian Future Leaders Foundation Limited;

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Lord Mayor's Charitable Foundation; and

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The Ramsay Centre for Western Civilisation Limited.

Context of amendments

3.2 The income tax law allows income tax deductions for taxpayers who make gifts of $2 or more to a deductible gift recipient. Deductible gift recipients are entities that fall within one of the general categories set out in Division 30 of the ITAA 1997 or are specifically listed by name in that Division. Legislative references in this Chapter are to the ITAA 1997 unless otherwise specified.

3.3 Deductible gift recipient status helps eligible organisations attract public financial support for their activities.

3.4 Royal Humane Society of New South Wales Incorporated (ABN 68 581 296 689) is a charity committed to publicly recognising acts of bravery by bestowing awards on those who risk their own lives in saving or attempting to save the lives of others.

3.5 Perth Korean War Memorial Committee Incorporated (ABN 90 608 024 391) is a charity created to establish a war memorial in Perth to honour the service and sacrifices of the Australians who served in the Korean War between 1950 and 1953.

3.6 Greek Orthodox Archdiocese of Australia Consolidated Trust Cathedral of the Annunciation of our Lady Restoration Fund (ABN 32 574 064 265) is operated by a registered charity and was created to restore the Cathedral of the Annunciation of our Lady which was damaged by fire in September 2021.

3.7 The Australian Future Leaders Foundation Limited (ABN 28 649 403 654) is a charity committed to advancing education, with a focus on building the skills, experience and capability of Australia's future leaders.

3.8 Lord Mayor's Charitable Foundation (ABN 48 042 414 556) is a charity that is committed to responding to social, economic, cultural, educational, environmental and other charitable needs of the community for the public benefit.

3.9 The Ramsay Centre for Western Civilisation Limited (ABN 22 617 686 905) is a charity that promotes studies and discussion associated with the establishment and development of western civilisation, including through establishing and administering scholarship funds and educational courses in collaboration and partnership with universities and other educational providers.

Summary of new law

3.10 Schedule 3 to the main Bill amends the ITAA 1997 to allow the following entities to be deductible gift recipients under the income tax law:

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Royal Humane Society of New South Wales Incorporated;

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Perth Korean War Memorial Committee Incorporated;

•

Greek Orthodox Archdiocese of Australia Consolidated Trust Cathedral of the Annunciation of our Lady Restoration Fund;

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The Australian Future Leaders Foundation Limited;

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Lord Mayor's Charitable Foundation; and

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The Ramsay Centre for Western Civilisation Limited.

Detailed explanation of new law

3.11 Taxpayers may claim an income tax deduction for gifts made to Royal Humane Society of New South Wales Incorporated (ABN 68 581 296 689) provided the gift complies with the existing requirements of the income tax law. This amendment ensures that Royal Humane Society of New South Wales Incorporated receives appropriate support through the Commonwealth tax system. [Schedule 3, item 3, table item 13.2.33 in the table in section 30-105]

3.12 Taxpayers may claim an income tax deduction for gifts made to Perth Korean War Memorial Committee Incorporated (ABN 90 608 024 391) provided the gift complies with the existing requirements of the income tax law. This amendment ensures that Perth Korean War Memorial Committee Incorporated receives appropriate support through the Commonwealth tax system. [Schedule 3, item 2, table item 5.2.37 in the table in section 30-50(2)]

3.13 Taxpayers may claim an income tax deduction for gifts made to Greek Orthodox Archdiocese of Australia Consolidated Trust Cathedral of the Annunciation of our Lady Restoration Fund (ABN 32 574 064 265) provided the gift complies with the existing requirements of the income tax law. This amendment ensures that Greek Orthodox Archdiocese of Australia Consolidated Trust Cathedral of the Annunciation of our Lady Restoration Fund receives appropriate support through the Commonwealth tax system. [Schedule 3, item 3, table item 13.2.31 in the table in section 30-105]

3.14 Taxpayers may claim an income tax deduction for gifts made to The Australian Future Leaders Foundation Limited (ABN 28 649 403 654) provided the gift complies with the existing requirements of the income tax law. This amendment ensures that The Australian Future Leaders Foundation Limited receives appropriate support through the Commonwealth tax system. [Schedule 3, item 1, table item 2.2.54 in the table in section 30-25(2)]

3.15 Taxpayers may claim an income tax deduction for gifts made to Lord Mayor's Charitable Foundation (ABN 48 042 414 556) provided the gift complies with the existing requirements of the income tax law. This amendment ensures that Lord Mayor's Charitable Foundation receives appropriate support through the Commonwealth tax system. [Schedule 3, item 3, table item 13.2.32 in the table in section 30-105]

3.16 Taxpayers may claim an income tax deduction for gifts made to The Ramsay Centre for Western Civilisation Limited (ABN 22 617 686 905) provided the gift complies with the existing requirements of the income tax law. This amendment ensures that The Ramsay Centre for Western Civilisation Limited receives appropriate support through the Commonwealth tax system. [Schedule 3, item 1, table item 2.2.55 in the table in section 30-25(2)]

Consequential amendments

3.17 Schedule 3 also amends the index for Division 30 of the ITAA 1997 to reflect the new listings. [Schedule 3, items 4 to 9, table items 21AA, 52BA, 68A, 84A, 94AAA and 103AA in the table in section 30-315]

Commencement, application, and transitional provisions

Commencement

3.18 The amendments commence on the first day of the quarter following Royal Assent. [Clause 2]

Application

3.19 The listing of Royal Humane Society of New South Wales Incorporated applies to gifts made on and after 1 July 2020.

3.20 The following listings apply to gifts made on and after 1 July 2021 and before 1 July 2024:

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Perth Korean War Memorial Committee Incorporated; and

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Greek Orthodox Archdiocese of Australia Consolidated Trust Cathedral of the Annunciation of our Lady Restoration Fund.

3.21 The following listings apply to gifts made on and after 1 July 2021:

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The Australian Future Leaders Foundation Limited;

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Lord Mayor's Charitable Foundation; and

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The Ramsay Centre for Western Civilisation Limited.