Subscribe to News
Close Search
 
MEDIA, JOBS & RESOURCES for the COMMON GOOD
News  | 

Tax Office Targets School Funds


30 August 2004 at 1:08 pm
Staff Reporter
The Australian Tax Office is about to target School Building Funds in its latest compliance investigations.

Staff Reporter | 30 August 2004 at 1:08 pm


0 Comments


 Print
Tax Office Targets School Funds
30 August 2004 at 1:08 pm

The Australian Tax Office is about to target School Building Funds in its latest compliance investigations.

The ATO’s says it will be looking at the operation of school building funds (SBFs) as part of its 2004-05 compliance activities around reviewing entitlement to endorsements.

Organisations selected for review will receive a letter in coming weeks.

Pro Bono Australia reported in June that a study by the public interest think tank The Australia Institute called “Tax Deductibility of Donations to School Building Funds” revealed that payments into some private and public school building funds may not meet the conditions required by the Australian Tax Office and that claims for tax deductions are not legitimate.

The Institute says demands for parents to pay into school building funds are often thinly disguised tax abuses and should be reined in by the Australian Taxation Office.

Executive Director Dr Clive Hamilton says tax deductibility for voluntary donations to school building funds was introduced to assist private schools in particular fund buildings such as libraries and other facilities.

According to the study there is evidence to suggest donations to some private schools are not being given freely either because parents are unaware that the payment is voluntary or because they are pressured by the school to give.

These pressures may include perceptions that their child may be disadvantaged if they fail to make a ‘donation’.

The Tax Office says it is required to carry out regular reviews of endorsed organisations and their operations to ensure they continue to meet the requirements of endorsement.

He ATO will be reviewing endorsed SBFs to confirm their status as deductible gift recipients and the tax deductibility of donations made to them, including examination of:

– whether gifted money has been used for purposes other than the acquisition, construction and maintenance of a school building, and
– practices in relation to soliciting donations and whether accepted gifts satisfy the requirements for tax deductibility.

The ATO points out that a school building fund is solely for providing money for the acquisition, construction or maintenance of the school or college buildings. It cannot be used for any other purpose.

To be tax deductible, gifts to the SBF must:
– be made voluntarily, and
– not provide any material benefit to the donor such as a reduction in school fees.

If you would like to comment on this review why not have Your Say on our website Forum. Just click on “FORUM” in the left hand side home page menu.



PB Careers
Get your biweekly dose of news, opinion and analysis to keep you up to date with what’s happening and why it matters for you, sent every Tuesday and Thursday morning.

Got a story to share?

Got a news tip or article idea for Pro Bono News? Or perhaps you would like to write an article and join a growing community of sector leaders sharing their thoughts and analysis with Pro Bono News readers? Get in touch at news@probonoaustralia.com.au or download our contributor guidelines.

Tags : Taxation,

 Print

Get more stories like this

FREE SOCIAL
SECTOR NEWS

Your email address will not be published. Required fields are marked *



YOU MAY ALSO LIKE

How to stay motivated in your job search

Maggie Coggan

Friday, 10th July 2020 at 7:04 pm

COVID crisis forces closure of charity co-op medical clinic

Luke Michael

Friday, 10th July 2020 at 3:42 pm

It’s time to help migrants and refugees bearing the brunt of COVID-19

Ezekiel Simperingham

Thursday, 9th July 2020 at 3:21 pm

Ask Izzy gets government funding boost amid rising service demand

Luke Michael

Wednesday, 8th July 2020 at 5:39 pm

Subscribe to News
pba inverse logo
Subscribe Twitter Facebook
×

We need your help.

Since the outbreak of COVID-19, Pro Bono Australia has seen a devastating fall in advertising and less people posting on our job board, which is how we fund our free news service. You can show us that you value the work we do by making a contribution.

 Make a contribution 

You have Successfully Subscribed!