Friday February 2013

School buildingSummary – Taxation Ruling 2013/2 was released last week clarifying the way in which s 30-15 and Item 2.1.10 of the table in s 30-25(1) of ITAA1997 apply to persons who make a gift or contribution to a public fund which purports to be a school building fund.

Last week the ATO on behalf of the Commissioner of taxation released TR 2013/2 regarding school building funds.

In particular, the ruling discusses factors relevant to determining:

  • What a school or college is for the purposes of Item 2.1.10;
  • Whether a building is used as a school or college by an entity; and
  • Whether a fund has been established and is being maintained solely for providing money for the acquisition, construction or maintenance of a building used as a school or college.

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Snooze buttonSummary – The Gillard Government has announced that the 2011-12 budget measure “Better Targeting of NFP Tax Concessions” will now commence from 1 July 2014.

On 31 January 2013 the Gillard Government announced that the Better Targeting of Not-For-Profit tax concessions legislation will now commence from 1 July 2014. Assistant Treasurer, David Bradbury MP said “this extension will enable further consultation and engagement with the NFP sector on this measure and ensure there is an opportunity for detailed stakeholder input to be provided.”

The purpose of the legislation is to ensure that tax concessions provided to NFP entities are targeted only at those activities that directly further the NFP’s altruistic purposes. Any activity pursued by a NFP entity that is deemed to be “unrelated” business will not be eligible for the tax concessions that the entity is registered for (including FBT, GST and DGR).

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ACNC LogoSummary – The ACNC has posted the “Confirm your registered charity details” form online and is sending copies to registered charities in a mail-out, giving charities the opportunity to confirm a range of information.

The ACNC has just uploaded Form AB “Confirm your registered charity details”. This form will also be sent in a mail-out to all charities registered with the ACNC over the coming weeks. The form provides charities with an opportunity to inform the ACNC of:

  • their size (i.e. small, medium or large);
  • whether they are a charity for the advancement of religion;
  • whether they would like to apply for a substituted accounting period;
  • the names, addresses and DOB of responsible persons (e.g. directors, trustees or committee members);
  • the charity’s governing documents (by attachment); and
  • whether details regarding a responsible person or the charity’s details should be withheld from the ACNC register.

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AustraliaSummary – COAG has released the Regulatory Impact Assessment (RIA) of potential duplication of governance and reporting standards for charities.

On 25 January, COAG released a Regulatory Impact Assessment (RIA) concerning potential duplication of governance and reporting standards for charities.

COAG says the purpose of the RIA is to identify and quantify the extent of duplication between existing and proposed governance standards and reporting requirements on charities, with a view to assisting a final report to COAG to determine whether it is a problem that would warrant government action.

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