ATO Online Guidelines for Public Ancillary Funds
19 January 2012 at 9:41 am
The Australian Tax Office has launched new online guidelines and information to help Not for Profit organisations seeking deductible gift recipient (DGR) status as Public Ancillary Funds (Public AFs).
New legal requirements for this DGR category came into operation on 1 January 2012.
The online information includes a Public Ancillary Funds homepage that provides information about the DGR category and the requirements for endorsement. The transitional arrangements for Public AFs endorsed on or before 31 December 2011 are also discussed.
The home page provides links to the other information for public AFs, including the:
- Public ancillary fund model trust deed
- Public ancillary fund – schedule for deductible gift recipient applicants
- Agreement to comply with the public ancillary fund guidelines
- Revocation of agreement to comply with the public ancillary fund guidelines
- Notification of change to the governing rules of an endorsed public ancillary fund
- Public ancillary fund guidelines, which are located on the Federal Register of Legislative Instruments.
On 29 November 2011, the Tax Laws Amendment (2011 Measures No. 7) Bill 2011 received royal assent.
Approximately 1,600 Public Ancillary Funds in Australia solicit tax deductible donations from the public to distribute to deductible gift recipients (DGRs) and are a commonly used structure for community philanthropy.
The Federal Government says the reforms have been much anticipated by the sector and it hopes the changes will bring the standards of accountability and governance of Public Ancillary Funds in line with Private Ancillary Funds.
Under the reforms the Treasurer will have the power to make legislative guidelines to establish and maintain Public Ancillary Funds.
The changes also give the Commissioner of Taxation the power to impose administrative penalties on trustees who fail to comply with the guidelines and to remove or suspend trustees of non-complying funds.
More information can be found at the Australian Taxation Office website.
Read our coverage of Public Ancillary Funds here.