Notice under subsection 30-85(2) and 30-85(4) - World Vision Australia Overseas Aid Fund

Overview

The Income Tax Assessment Act 1997, enacted by the Parliament of Australia, serves to regulate and manage the taxation system within the country, including provisions for relief funds aimed at supporting developing nations. This specific legislative instrument amends the list of recognised developing country relief funds, which are entitled to certain tax benefits under the Act. The policy objective of this Act is to provide relief to developing countries by ensuring that certain funds established for their aid are eligible for favourable tax treatment. The Minister for Revenue and Financial Services, Kelly O’Dwyer, has declared and revoked the eligibility of specific funds to ensure they meet the criteria set out by the Act, thereby addressing any discrepancies in the recognition of these relief funds. This notice, published on 27 June 2018, updates the list of approved funds to maintain the integrity and purpose of the tax relief provisions intended for developing countries.

Scope and Application

The Income Tax Assessment Act 1997 applies to the establishment and operation of funds intended for the relief of persons in developing countries, as determined by the Minister for Foreign Affairs. In this context, the Act outlines the criteria for recognising certain funds as "developing country relief funds," which may provide tax benefits to donors. The Act applies to funds established by approved organisations and mandates that these funds must be exclusively dedicated to aiding individuals in countries recognised by the Minister for Foreign Affairs as developing nations. The geographic reach of this legislation is national, as it is governed by the Commonwealth of Australia and applies across all states and territories. The application of this Act can be extended or restricted through subordinate instruments, such as regulations or notices, which can specify additional criteria or alter the conditions under which certain funds qualify as developing country relief funds. This particular notice, issued by the Minister for Revenue and Financial Services, modifies the list of recognised funds by recognising one fund and revoking the status of another, with these changes taking effect from the date of publication in the Gazette.

Key Provisions

The Income Tax Assessment Act 1997 includes specific provisions that allow the Minister for Revenue and Financial Services to declare certain funds as developing country relief funds. Section 30-85(2) enables the Minister to declare funds that meet two criteria: they must be established by an organisation recognised by the Minister for Foreign Affairs as an approved organisation, and they must be intended solely for the relief of persons in countries recognised by the Minister for Foreign Affairs as developing countries (subsection 30-85(2)). The Act also provides the Minister with the authority to revoke such declarations if the conditions are no longer met, which is outlined in subsection 30-85(4). Under this Act, the obligations for parties or entities governed by it include ensuring that the funds established for relief efforts are indeed managed by an organisation approved by the Minister for Foreign Affairs and are used strictly for the intended purpose of providing relief to individuals in developing countries. This involves maintaining transparency in the establishment, management, and use of these funds to comply with the Act's requirements. Failure to comply with the provisions of the Income Tax Assessment Act 1997 can result in various consequences. The Act does not explicitly detail specific penalties or offences within the given notice; however, generally, breaches of tax legislation can lead to significant penalties. For example, under the Act, individuals or entities may face financial penalties, and in severe cases, criminal charges for fraudulent activities or misuse of funds. The exact penalties can vary based on the nature and extent of the breach, but they can include fines and imprisonment as stipulated by other relevant sections of the Act.