Tax Laws Amendment (2011 Measures No. 7) Act 2011 (147 of 2011)

Schedule 8   Ancillary funds

Part 1   Public ancillary funds

Division 1   Main amendment

Taxation Administration Act 1953

16   Before the group heading before section 426-105 in Schedule 1

Insert:

Public ancillary funds

426-102 Public ancillary funds

(1) A trust is a public ancillary fund if:

(a) at least one of the following subparagraphs applies:

(i) each trustee of the trust is a *constitutional corporation;

(ii) the only trustee of the trust is the Public Trustee of a State or Territory, or is prescribed by the regulations for the purposes of this subparagraph; and

(b) each trustee of the trust has agreed, in the *approved form given to the Commissioner, to comply with the rules in the *public ancillary fund guidelines, as in force from time to time; and

(c) none of the trustees has revoked that agreement in accordance with subsection (2).

(2) A trustee may revoke an agreement mentioned in paragraph (1)(b) only by giving the revocation to the Commissioner in the *approved form.

(3) Sections 426-125 to 426-165 do not apply to a *public ancillary fund if subparagraph (1)(a)(ii) of this section applies to the fund.

426-103 Public ancillary fund guidelines

The Minister must, by legislative instrument, formulate guidelines (the public ancillary fund guidelines ) setting out:

(a) rules that *public ancillary funds and their trustees must comply with if the funds are to be, or are to remain, endorsed as *deductible gift recipients; and

(b) the amount of the administrative penalty, or how to work out the amount of the administrative penalty, under subsection 426-120(1) in relation to public ancillary funds.

426-104 Australian Business Register must show public ancillary fund status

(1) If a *public ancillary fund has an *ABN, the *Australian Business Registrar may enter in the *Australian Business Register in relation to the fund a statement that it is a public ancillary fund.

Note 1: An entry (or lack of entry) of a statement required by this section does not affect whether a trust is a public ancillary fund.

Note 2: The Australian Business Register will also show if a public ancillary fund is endorsed as a deductible gift recipient: see section 30-229 of the Income Tax Assessment Act 1997.

(2) The *Australian Business Registrar must take reasonable steps to ensure that a statement appearing in the *Australian Business Register under this section is true. For this purpose, the Registrar may:

(a) change the statement; or

(b) remove the statement from the Register if the statement is not true.