Cultural Bequests Program (Maximum Approval Amounts) Determination (No. 1) 1997

Overview

The Cultural Bequests Program (Maximum Approval Amounts) Determination (No. 1) 1997, enacted by the Commonwealth of Australia under the Income Tax Assessment Act 1997, was introduced to address the need for establishing specific financial limits for the approval of bequests under the Cultural Bequests Program. This Determination was made by the Minister for Communications, the Information Economy and the Arts, Richard Kenneth Robert Alston, and it aims to provide clarity and governance around the maximum amounts that can be approved for bequests in support of cultural institutions for certain financial years. The policy objective is to ensure that the Cultural Bequests Program operates within defined financial parameters, thereby supporting the preservation and promotion of Australia's cultural heritage while maintaining fiscal responsibility and transparency in the allocation of funds.

Scope and Application

The Cultural Bequests Program (Maximum Approval Amounts) Determination (No. 1) 1997 applies to the Cultural Bequests Program under section 30-240 of the Income Tax Assessment Act 1997, establishing specific financial limits for the approval of bequests during the designated financial years. This determination sets the maximum amount that can be approved for bequests, specifically $1,000 for the 1995-96 and 1996-97 financial years, and increases to $5,000,000 for the 1997-98, 1998-99, and 1999-2000 financial years. This legislation impacts entities and individuals participating in the Cultural Bequests Program, particularly those making donations of cultural property to approved institutions. The geographic reach of this Act is national, applying across the Commonwealth of Australia, and it does not specify any exclusions, exemptions, or thresholds beyond those outlined in the determination. The Act revokes the earlier determination dated 29 January 1996, ensuring that only the latest determination governs the maximum approval amounts for the specified financial years.

Key Provisions

The Cultural Bequests Program (Maximum Approval Amounts) Determination (No. 1) 1997 provides specific financial limits for cultural bequests under the Income Tax Assessment Act 1997. This legislative instrument, made by the Minister for Communications, the Information Economy and the Arts, outlines the maximum approval amounts for cultural bequests for certain financial years. Specifically, section 3(1) states that the maximum approval amount for the 1995-96 and 1996-97 financial years is $1,000, while section 3(2) specifies that the maximum approval amount for the 1997-98, 1998-99, and 1999-2000 financial years is $5,000,000. The determination also revokes a previous determination made on 29 January 1996, thereby ensuring that the new financial limits are in effect. Under this determination, entities or individuals involved in the Cultural Bequests Program must adhere to the specified maximum approval amounts for the relevant financial years. This means that any bequests made during the 1995-96 and 1996-97 financial years cannot exceed $1,000, while those made during the 1997-98, 1998-99, and 1999-2000 financial years cannot exceed $5,000,000. The determination applies to all entities and individuals who are subject to the Act and are participating in the Cultural Bequests Program, ensuring that they comply with the set financial limits. Non-compliance with these limits may result in the bequest not being approved or the application being rejected. There are no explicit offences, penalties, or consequences mentioned in this determination. However, non-compliance with the maximum approval amounts could potentially lead to the bequest not receiving the intended tax benefits or exemptions, as provided under section 30-240 of the Income Tax Assessment Act 1997. Although specific penalties are not stated, any breach of the Act's provisions could result in legal consequences, including the potential for the Commissioner of Taxation to disallow the bequest, which would impact the donor's tax position.