The ATO has reminded trustees of private ancillary funds that the transitional period to amend the fund’s governing rules to comply with the private ancillary fund guidelines closes on 1 October 2012. This applies to funds that were prescribed private funds on or before 30 September 2009.
The ATO said the funds and their trustees must comply with the guidelines to remain endorsed as deductible gift recipients (DGRs). It said failure to comply with the guidelines means that:
- the trustee and directors of trustees may incur administrative penalties; and
- the fund will no longer be entitled to endorsement.
Further, the ATO said the trustees of funds must notify it of any change in the fund’s governing rules in the approved form within 21 days of the change. Where a review has determined the fund can already comply with the guidelines under the existing rules, no changes are required.
[LTN 166, 28/8]