The Assistant Treasurer on Tue 17.4.2012, released revised draft legislation for restating and standardising the special conditions for tax concession entities.
The Government announced in the 2009-10 Budget that it would amend the “in Australia” special conditions in Div 50 of the ITAA 1997 to ensure that Government retains the ability to maintain appropriate oversight over those organisations seeking to pass money to overseas charities and other entities.
After public consultation on the initial draft legislation, the Assistant Treasurer said changes had been made in the latest draft and explanatory materials. The latest draft amends the “in Australia” special conditions as they apply to deductible gift recipients, and standardises the term “not-for-profit” throughout the tax laws.
Mr Bradbury said that restating the “in Australia” special conditions provides that income tax exempt entities must operate and pursue objectives principally in Australia and for the broad benefit of the Australian community unless they are deductible gift recipients, which are subject to separate requirements, or are prescribed in the regulations as exempt.
Consultation on the revised draft is open until Friday, 11 May 2012. Copies of the revised draft and explanatory materials are on the Treasury website.
Source: Assistant Treasurer’s media release, 17 April 2012
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