Senate

Supplementary Explanatory Memorandum

(Circulated by authority of the Treasurer, the Hon Peter Costello, MP)

Chapter 1 Amendments to Schedule 10 - endorsement of charities

Explanation of amendments

1. 1.1 These amendments change the start date of the measure in Schedule 10 of the Tax Laws Amendment (2004 Measures No. 1) Bill 2004 to 1 July 2005. Schedule 10 introduces changes to require charities, public benevolent institutions and health promotion charities to be endorsed by the Commissioner of Taxation in order to access relevant taxation concessions.

2. 1.2 It was initially proposed that this measure would take effect on 1 July 2004. These amendments will provide affected organisations with more time to comply with the new arrangements.

3. 1.3 In the interim, charities, public benevolent institutions and health promotion charities may continue to self-assess their eligibility for fringe benefits tax and goods and services tax concessions. Charities will continue to require endorsement under the provisions set out in the Income Tax Assessment Act 1997 in order to access the income tax exemption for charities and deductible gift recipient status.