Commonwealth Consolidated Acts Commonwealth Consolidated ActsIncome Tax Assessment Act 1997
1 At the end of section 50 - 1
Add:
Note 3: In all cases the exemption is subject to the special condition in section 50 - 47 (about an entity that is an ACNC type of entity).
2 After section 50 - 45
Insert:
50 - 47 Special condition for all items
An entity that:
(a) is covered by any item; and
(b) is an * ACNC type of entity;
is not exempt from income tax unless the entity is registered under the Australian Charities and Not - for - profits Commission Act 2012 .
3 At the end of subsection 50 - 110(5)
Add:
The entity must also satisfy section 50 - 47, if the entity is an * ACNC type of entity.
Income Tax (Transitional Provisions) Act 1997
4 Section 50 - 50
Omit ", as amended by Schedules 1 and 2 to the Tax Laws Amendment (Special Conditions for Not - for - profit Concessions) Act 2012 ".
Income Tax Assessment Act 1997
5 Paragraph 59 - 50(6)(b)
Omit "distributing bodies", substitute "Indigenous holding entities".
6 At the end of subsection 59 - 50(6)
Add:
; or (c) a * registered charity.
Income Tax (Transitional Provisions) Act 1997
7 Part 2 - 15 (heading)
Repeal the heading, substitute:
Part 2 - 15 -- Non - assessable income
8 At the end of Part 2 - 15
Add:
Division 59 -- Particular amounts of non - assessable non - exempt income
Table of Subdivisions
59 - N Native title benefits
Subdivision 59 - N -- Native title benefits
Table of sections
59 - 50 Indigenous holding entities
59 - 50 Indigenous holding entities
Without limiting subsection 59 - 50(6) of the Income Tax Assessment Act 1997 , an entity was an Indigenous holding entity at a time if:
(a) the time occurred:
(i) during an income year starting on or after 1 July 2008; and
(ii) before the commencement of Chapter 2 of the Australian Charities and Not - for - profits Commission Act 2012 ; and
(b) at that time, the entity was endorsed under Subdivision 50 - B of the Income Tax Assessment Act 1997 as exempt from income tax because the entity was covered by item 1.1, 1.5, 1.5A or 1.5B of the table in section 50 - 5 of that Act, as in force at that time.
9 Application of amendments
The amendments made by this Part apply in relation to income years starting on or after 1 July 2008.
Fringe Benefits Tax Assessment Act 1986
10 Subsection 5B(1E) (method statement, paragraph ( d) of step 2)
Omit "by non - profit societies and associations", substitute "by societies and associations that are rebatable employers".
11 Subparagraph 57A(2)(b)(iii)
Repeal the subparagraph, substitute:
(ii) a hospital carried on by a society or association that is a rebatable employer;
12 Subsection 57A(4)
Repeal the subsection, substitute:
(4) A benefit provided in respect of the employment of an employee is an exempt benefit if the employer of the employee is a hospital carried on by a society or association that is a rebatable employer.
13 Section 65J (heading)
Repeal the heading, substitute:
65J Rebate for certain not - for - profit employers etc.
14 Subsections 65J(1) and (1A)
Repeal the subsections, substitute:
Rebatable employer
(1) An employer is a rebatable employer for a year of tax if the employer:
(a) is exempt from income tax at any time during the year of tax under any of the provisions set out in the following table; and
(b) satisfies the special conditions (if any) set out in the following table.
Rebatable employer | ||
Item | Column 1 Type of employer | Column 2 Special conditions |
1 | a registered charity covered by item 1.1 of the table in section 50 - 5 of the Income Tax Assessment Act 1997 | The registered charity is not a rebatable employer for the year of tax if it: (a) is a registered public benevolent institution; or (b) is a registered health promotion charity; or (c) is an institution of the Commonwealth, a State or a Territory; or (d) has not been endorsed under subsection 123E(1); or (e) is not an institution. |
2 | a scientific institution covered by item 1.3 of the table in section 50 - 5 of the Income Tax Assessment Act 1997 | The institution is not an institution of the Commonwealth, a State or a Territory unless it: (a) is an institution established by a law of the Commonwealth, a State or a Territory; and (b) is not conducted by or on behalf of the Commonwealth, a State or a Territory; and (c) is engaged solely in research into the causes, prevention or cure of diseases in humans. |
a public educational institution covered by item 1.4 of the table in section 50 - 5 of the Income Tax Assessment Act 1997 | The institution is not an institution established by a law of the Commonwealth, a State or a Territory unless it: (a) is not conducted by or on behalf of the Commonwealth, a State or a Territory; and (b) is a preschool or school (other than a tertiary institution). | |
4 | a society, association or club: (a) established for the encouragement of science; and (b) covered by item 1.7 of the table in section 50 - 5 of the Income Tax Assessment Act 1997 | See subsection ( 5) of this section. |
5 | a society, association or club: (a) established for community service purposes (except political or lobbying purposes); and (b) covered by item 2.1 of the table in section 50 - 10 of the Income Tax Assessment Act 1997 | See subsection ( 5) of this section. |
6 | an employer association or an employee association covered by item 3.1 of the table in section 50 - 15 of the Income Tax Assessment Act 1997 | None. |
7 | a trade union covered by item 3.2 of the table in section 50 - 15 of the Income Tax Assessment Act 1997 | None. |
a society or association: (a) established for the purpose of promoting the development of: (i) aviation; or (ii) tourism; and (b) covered by item 8.1 of the table in section 50 - 40 of the Income Tax Assessment Act 1997 | See subsection ( 5) of this section. | |
9 | a society or association: (a) established for the purpose of promoting the development of any of the following Australian resources: (i) agricultural resources; (ii) horticultural resources; (iii) industrial resources; (iv) manufacturing resources; (v) pastoral resources; (vi) viticultural resources; (vii) aquacultural resources; (viii) fishing resources; and (b) covered by item 8.2 of the table in section 50 - 40 of the Income Tax Assessment Act 1997 | See subsection ( 5) of this section. |
10 | a society or association: (a) established for the purpose of promoting the development of Australian information and communications technology resources; and (b) covered by item 8.3 of the table in section 50 - 40 of the Income Tax Assessment Act 1997 | See subsection ( 5) of this section. |
11 | a society, association or club: (a) established for the encouragement of any of the following: (i) animal racing; (ii) art; (iii) a game or sport; (iv) literature; (v) music; and (b) covered by item 9.1 of the table in section 50 - 45 of the Income Tax Assessment Act 1997 | See subsection ( 5) of this section. |
12 | a society, association or club: (a) established for musical purposes; and (b) covered by item 9.2 of the table in section 50 - 45 of the Income Tax Assessment Act 1997 | See subsection ( 5) of this section. |
Note: Subsection ( 3) affects the kind of employers that may be considered to be an institution of government.
15 Subsection 65J(2)
Repeal the subsection.
16 Subsection 65J(2A) (definition of rebatable days in year )
Omit " paragraphs ( 1)(a) to (l) (inclusive)", substitute "the table items in subsection ( 1)".
17 Subsection 65J(5)
Repeal the subsection, substitute:
(5) A society, association or club is not covered by table item 4, 5, 8, 9, 10, 11 or 12 in subsection ( 1) for a year of tax if it is:
(a) an incorporated company where all the stock or shares in the capital of the company is or are beneficially owned by:
(i) the Commonwealth, a State or a Territory; or
(ii) an authority or institution of the Commonwealth, a State or a Territory; or
(b) an incorporated company where the company is limited by guarantee and the interests and rights of the members in or in relation to the company are beneficially owned by:
(i) the Commonwealth, a State or a Territory; or
(ii) an authority or institution of the Commonwealth, a State or a Territory.
18 Part XA (heading)
Omit " charitable institutions ", substitute " registered charities ".
19 Section 123E (heading)
Omit " charitable institution ", substitute " registered charity ".
20 Subsections 123E(1) and (2)
Omit "a charitable institution covered by paragraph 65J(1)(baa)" (wherever occurring), substitute "a registered charity covered by table item 1 in subsection 65J(1)".
21 Paragraph 123E(2)(a)
Repeal the paragraph, substitute:
(a) is a registered charity covered by column 1 of that table item; and
(aa) satisfies the special conditions set out in that table item (other than the condition relating to endorsement under subsection ( 1) of this section); and
22 Subsection 135Q(1) (note)
Omit "charitable institutions", substitute "registered charities".
23 Subsection 136(1)
Insert:
"rebatable employer" has the meaning given by section 65J.
24 Paragraph 140(1B)(c)
Repeal the paragraph, substitute:
(c) a hospital carried on by a society or association that is a rebatable employer;
25 Subparagraph 140(1C)(b)(iii)
Repeal the subparagraph, substitute:
(ii) a hospital carried on by a society or association that is a rebatable employer.
Taxation Administration Act 1953
26 Paragraphs 426 - 5(f) and 426 - 65(1)(f) in Schedule 1
Omit "a charitable institution covered by paragraph 65J(1)(baa)", substitute "a registered charity covered by table item 1 in subsection 65J(1)".
27 Application and transitional provisions
(1) The amendments made by this Part apply for the 2013 - 14 year of tax and later years of tax.
(2) However, those amendments apply to an entity for the 2014 - 15 year of tax and later years of tax if the entity is endorsed under subsection 123E(1) of the Fringe Benefits Tax Assessment Act 1986 immediately before the commencement of this Part.
(3) If:
(a) subitem ( 2) applies to an entity; and
(b) the entity's endorsement mentioned in that subitem is in force at the end of the 2013 - 14 year of tax;
that endorsement has effect after the end of that year of tax as if it were an endorsement under subsection 123E(1) of that Act as amended by this Part.
Part 4 -- Updating indexation provisions
Income Tax Assessment Act 1997
28 Subsection 960 - 275(1A) (formula)
Repeal the formula, substitute:
Superannuation (Government Co - contribution for Low Income Earners) Act 2003
29 Subsection 10A(5) (definition of current year )
Omit "31 March", substitute "31 December".
Superannuation Guarantee (Administration) Act 1992
30 Paragraph 9(1)(b)
Omit "March quarter" (wherever occurring), substitute "December quarter".
31 Subsection 9(1) (note)
Repeal the note, substitute:
Note: The December quarter is a quarter beginning on 1 October.
32 Application of amendments
(1) The amendment made by item 28 applies in relation to working out the indexation factor for the 2013 - 14 income year and later income years.
(2) The amendment made by item 29 applies in relation to working out the indexation factor for the 2013 - 14 income year and later income years.
(3) The amendments made by items 30 and 31 apply in relation to working out the indexation factor for the 2013 - 14 year and later years.
Income Tax Assessment Act 1936
33 Paragraph 23AG(1AA)(c)
Omit "50 - 50(c)", substitute "50 - 50(1)(c)".
34 Section 24AT ( paragraphs ( c) and (d) of the definition of excluded STB )
Omit "50 - 55(a)", substitute "50 - 55(1)(a)".
Income Tax Assessment Act 1997
35 Section 30 - 60
Repeal the section, substitute:
30 - 60 Gifts to a National Parks body or conservation body must satisfy certain requirements
You can deduct a gift that you make to an environmental institution covered by any of table items 6.2.1 to 6.2.12 or 6.2.22 in subsection 30 - 55(2) only if, at the time of making the gift:
(a) if the institution is not a * registered charity--the institution has agreed to give the * Environment Secretary, within a reasonable period after the end of the income year in which you made the gift, statistical information about gifts made to the institution during that income year; and
(b) the institution has a policy of not acting as a mere conduit for the donation of money or property to other entities.
36 Section 50 - 15 (at the end of the cell at table item 3.1, column headed "Special conditions")
Add:
; and (c) complies with all the substantive requirements in its governing rules; and (d) applies its income and assets solely for the purpose for which the association is established |
37 Section 50 - 15 (cell at table item 3.2, column headed "Special conditions")
Repeal the cell, substitute:
the trade union: (a) is located in Australia, and incurs its expenditure and pursues its objectives principally in Australia; and (b) complies with all the substantive requirements in its governing rules; and (c) applies its income and assets solely for the purpose for which the trade union is established |
38 Section 50 - 50
Omit "An entity covered by item 1.1 or 1.2", substitute "(1) An entity covered by item 1.1".
39 Paragraph 50 - 50(d)
Omit "Australia.", substitute "Australia;".
40 After paragraph 50 - 50(d) (before the notes)
Insert:
and the entity satisfies the conditions in subsection ( 2).
41 At the end of section 50 - 50
Add:
(2) The entity must:
(a) comply with all the substantive requirements in its governing rules; and
(b) apply its income and assets solely for the purpose for which the entity is established.
42 Section 50 - 55
Before "An", insert "(1)".
43 Paragraph 50 - 55(c)
Omit "resident.", substitute "resident;".
44 After paragraph 50 - 55(c) (before the note)
Insert:
and the entity satisfies the conditions in subsection ( 2).
45 At the end of section 50 - 55
Add:
(2) The entity must:
(a) comply with all the substantive requirements in its governing rules; and
(b) apply its income and assets solely for the purpose for which the entity is established.
46 Section 50 - 65
Before "A fund", insert "(1)".
47 Paragraph 50 - 65(b)
Omit "section 30 - 15.", substitute "section 30 - 15;".
48 After paragraph 50 - 65(b) (before the note)
Insert:
and the fund satisfies the conditions in subsection ( 2).
49 At the end of section 50 - 65
Add:
(2) The fund must:
(a) comply with all the substantive requirements in its governing rules; and
(b) apply its income and assets solely for the purpose for which the fund is established.
50 Section 50 - 70
Before "An", insert "(1)".
51 Paragraph 50 - 70(c)
Omit "resident.", substitute "resident;".
52 After paragraph 50 - 70(c) (before the note)
Insert:
and the entity satisfies the conditions in subsection ( 2).
53 At the end of section 50 - 70
Add:
(2) The entity must:
(a) comply with all the substantive requirements in its governing rules; and
(b) apply its income and assets solely for the purpose for which the entity is established.
54 At the end of subsection 50 - 72(1)
Add:
; and (c) complies with all the substantive requirements in its governing rules; and
(d) applies its income and assets solely for the purpose for which the fund is established.
55 Subsection 355 - 100(1) (table item 2)
Before "an * exempt entity", insert "at any time during the income year".
56 Application of amendments
(1) The amendments made by this Part (other than item 55) apply in relation to income years starting on or after the commencement of this Part.
(2) The amendment made by item 55 applies in relation to an R&D entity's assessments for income years commencing on or after 1 July 2013.
(3) The amendment made by item 55 does not affect by implication the interpretation of the Income Tax Assessment Act 1997 in relation to assessments for earlier income years.
