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

14   After Division 156

Insert:

Division 157 - Accounting basis of charitable institutions etc.

157-1 What this Division is about

The choice available to a charitable institution, trustee of a charitable fund, gift-deductible entity or government school to account on a cash basis is not restricted as it is for other entities, but other restrictions may apply.

157-5 Charitable institutions etc. choosing to account on a cash basis

(1) A charitable institution, a trustee of a charitable fund, a *gift-deductible entity or a *government school may choose to *account on a cash basis, with effect from the first day of the tax period that the institution, trustee or entity chooses.

(2) This section does not apply in relation to a charitable institution or a trustee of a charitable fund unless the institution or trustee is an *endorsed charitable institution or an *endorsed trustee of a charitable fund.

Example: This section does not apply in relation to an entity that is both a charitable institution and a gift-deductible entity unless the entity is an endorsed charitable institution.

(3) This section does not apply in relation to 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 the entity is:

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

(b) a *government school; or

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

Note: This subsection excludes from this section certain (but not all) gift-deductible entities that are only endorsed for the operation of a fund, authority or institution.

(4) This section has effect despite section 29-40 (which is about choosing to account on a cash basis).

157-10 Charitable institutions etc. ceasing to account on a cash basis

(1) Paragraph 29-50(1)(a) and subsection 29-50(3) do not apply in relation to any charitable institution, any trustee of a charitable fund, any *gift-deductible entity or any *government school.

(2) This section does not apply in relation to a charitable institution or a trustee of a charitable fund unless the institution or trustee is an *endorsed charitable institution or an *endorsed trustee of a charitable fund.

Example: This section does not apply in relation to an entity that is both a charitable institution and a gift-deductible entity unless the entity is an endorsed charitable institution.

(3) This section does not apply in relation to 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 the entity is:

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

(b) a *government school; or

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

Note: This subsection excludes from this section certain (but not all) gift-deductible entities that are only endorsed for the operation of a fund, authority or institution.