Tax Laws Amendment (2006 Measures No. 3) Act 2006 (80 of 2006)

Schedule 12   GST treatment of gift-deductible entities

A New Tax System (Goods and Services Tax) Act 1999

10   At the end of section 40-160

Add:

(3) Subsection (1) does not apply to a supply by a *gift-deductible entity endorsed as a deductible gift recipient (within the meaning of the *ITAA 1997) under section 30-120 of the ITAA 1997, unless:

(a) the supplier is:

(i) a charitable institution or a trustee of a charitable fund; or

(ii) a *government school; or

(iii) a fund, authority or institution of a kind referred to in paragraph 30-125(1)(b) of the ITAA 1997; or

(b) each purpose to which the supply relates is a *gift-deductible purpose of the supplier.

Note: This subsection denies input taxed status under this section to supplies by certain (but not all) gift-deductible entities that are only endorsed for the operation of a fund, authority or institution. However, supplies can be input taxed under this section if they relate to the principal purpose of the fund, authority or institution.