More Flexibility for PPFs
30 May 2005 at 1:05 pm
Legislation has been introduced into Federal Parliament to amend the Income Tax Assessment Act (ITAA 1997) and introduce a number of amendments to increase flexibility for charitable funds and prescribed private funds (PPFs).
The second reading speech says the bill will implement a number of proposals to increase flexibility for charitable funds, ancillary funds and prescribed private funds, and hence further encourage charitable giving in Australia.
The bill expands the concessions relating to the capital gains tax provisions, distributions by charitable funds, the income tax exemption for charities and the refund of franking credits provisions. The measure gives effect to the government’s announcement in the 2004-05 budget.
The amendments will:
– remove the condition that testamentary gifts (ie gifts made under a will) of property to DGRs must be valued at greater than $5,000 before access to the CGT exemption is available
– allow charitable funds to claim income tax exemptions whether they provide money, property and benefits solely to charities based in Australia, solely to charities that are also DGRs, or to a combination of these charities
– allow prescribed private funds and ancillary funds that provide money, property and benefits solely to income tax exempt DGRs to qualify for income tax exemptions where the Tax Office has endorsed these funds as being eligible for tax exemptions, and
– allow ancillary fund and prescribed private funds that are endorsed as income tax exempt entities to be entitled to a refund of franking credits.
If you would like an electronic version of the Bill in PDFD format just send us an email with the words Tax Laws (2005 No 3) in the subject line to probono@probonoaustralia.com.au.
