Improving the Integrity of PPFs
Friday, 5th December 2008 at 9:52 am
The Federal Government has released a discussion paper to provide a point of reference for public submissions on the Government’s 2008 Budget commitment to improve the integrity of Prescribed Private Funds (PPFs).
The Treasurer announced in the Budget that the Government will legislate guidelines to improve the integrity of PPFs and to provide the trustees of PPFs with greater certainty as to their philanthropic obligations.
This measure will come into effect from 1 July 2009.
Since their inception PPFs have received donations of over $1.3 billion, and made distributions of over $300 million.
The discussion paper outlines the Government’s views on the essential characteristics of a PPF and outlines a proposal for several changes to the current guidelines and regulatory system.
Some of the issues include:
• PPFs having to distribute 15% of their value annually (rather than 100% of their income)
• having a minimum start-up size of $500k
• having some sort of a register or access to PPFs so Not for Profits can approach them for funding
• having a mechanism of converting a PPF to a PAF (Public Ancillary Fund) specifically where the PPF wants to attract donations more broadly
Interested parties are invited to comment on the paper. While submissions may be lodged electronically or by post, electronic lodgement is preferred.
Closing date for submissions: Wednesday, 14 January 2009
Address written submissions to:
Philanthropy and Exemptions Unit
Personal and Retirement Income Division
PARKES ACT 2600
For inquiries, please call Chris Leggett (02) 6263 3208
The discussion paper is available on the Treasury website www.treasury.gov.au