A New Tax System (Tax Administration) Act 1999 (179 of 1999)

Schedule 8   Endorsing entities as exempt from income tax

Income Tax Assessment Act 1997

9   After section 50-50

Insert:

50-52 Special condition for items 1.1, 1.5, 1.5A and 1.5B

(1) An entity covered by item 1.1, 1.5, 1.5A or 1.5B is not exempt from income tax unless the entity is endorsed as exempt from income tax under Subdivision 50-B.

Note: The entity will not be exempt from income tax unless it also meets other conditions: see section 50-50 (for an entity covered by item 1.1), 50-57 (for an entity covered by item 1.5) or section 50-60 (for an entity covered by item 1.5A or 1.5B).

(2) However, an entity that is a charitable institution prescribed for the purposes of paragraph 50-50(c) or (d) may be exempt from income tax even if the entity is not endorsed as exempt from income tax under Subdivision 50-B (as long as the entity meets the other requirements of this Division).

(3) This section has effect despite all the other sections of this Subdivision.

Note: This means that an entity covered both by an item other than 1.1, 1.5, 1.5A or 1.5B and by one of those items is not exempt from income tax unless the entity is endorsed under Subdivision 50-B as exempt from income tax (or is prescribed for the purposes of paragraph 50-50(c) or (d)) and the entity meets the requirements of whichever of sections 50-50, 50-57 and 50-60 is relevant.