Treasury Laws Amendment (2022 Measures No. 5) Act 2023
No. 2, 2023
An Act to amend the law relating to taxation, and for related purposes
Contents
1 Short title
2 Commencement
3 Schedules
Schedule 1—Deductible gift recipients
Income Tax Assessment Act 1997
Treasury Laws Amendment (2022 Measures No. 5) Act 2023
No. 2, 2023
An Act to amend the law relating to taxation, and for related purposes
[Assented to 16 February 2023]
The Parliament of Australia enacts:
1 Short title
This Act is the Treasury Laws Amendment (2022 Measures No. 5) Act 2023.
2 Commencement
(1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.
Commencement information |
Column 1 | Column 2 | Column 3 |
Provisions | Commencement | Date/Details |
1. The whole of the Act | The first 1 January, 1 April, 1 July or 1 October to occur after the day this Act receives the Royal Assent. | 1 April 2023 |
Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.
(2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.
3 Schedules
Legislation that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.
Schedule 1—Deductible gift recipients
Income Tax Assessment Act 1997
1 Subsection 30‑25(2) (at the end of the cell at table item 2.2.24, column headed “Special conditions”)
Add “and before 1 January 2023”.
2 Subsection 30‑25(2) (at the end of the table)
Add:
2.2.56 | Australian Education Research Organisation Limited | the gift must be made after 30 June 2021 |
2.2.57 | Jewish Education Foundation (Vic) Ltd | the gift must be made after 30 June 2021 and before 1 July 2026 |
2.2.58 | Melbourne Business School Limited | the gift must be made after 30 June 2022 |
3 Section 30‑95 (table item 11.2.11)
Omit “9 March 2023”, substitute “9 March 2028”.
4 Subsection 30‑100(2) (table item 12.2.5)
Omit “1 July 2022”, substitute “1 July 2024”.
5 Section 30‑105 (at the end of the table)
Add:
13.2.34 | Australians for Indigenous Constitutional Recognition Ltd | the gift must be made after 30 June 2022 and before 1 July 2025 |
13.2.35 | Leaders Institute of South Australia Incorporated | the gift must be made after 30 June 2022 and before 1 July 2027 |
13.2.36 | St Patrick’s Cathedral Melbourne Restoration Fund | the gift must be made after 30 June 2022 and before 1 July 2027 |
6 Section 30‑315 (after table item 21)
Insert:
21AAA | Australian Education Research Organisation Limited | item 2.2.56 |
7 Section 30‑315 (after table item 26)
Insert:
26A | Australians for Indigenous Constitutional Recognition Ltd | item 13.2.34 |
8 Section 30‑315 (after table item 63B)
Insert:
63C | Jewish Education Foundation (Vic) Ltd | item 2.2.57 |
9 Section 30‑315 (after table item 65AA)
Insert:
65AB | Leaders Institute of South Australia Incorporated | item 13.2.35 |
10 Section 30‑315 (after table item 72)
Insert:
72AAAA | Melbourne Business School Limited | item 2.2.58 |
11 Section 30‑315 (after table item 112AA)
Insert:
112AB | St Patrick’s Cathedral Melbourne Restoration Fund | item 13.2.36 |
[Minister’s second reading speech made in—
House of Representatives on 30 November 2022
Senate on 1 December 2022]
Overview
The Treasury Laws Amendment (2022 Measures No. 5) Act 2023, enacted by the Parliament of Australia and assented to on 16 February 2023, serves to amend the law relating to taxation, specifically targeting the regulation of deductible gift recipients under the Income Tax Assessment Act 1997. This Act was introduced to address the need for updating and extending the eligibility periods for certain charitable institutions to receive tax-deductible gifts, thereby ensuring that these organisations can continue to operate and provide essential services without undue financial strain. The policy objective is to provide clarity and stability to these organisations by extending their eligibility periods and adjusting specific conditions for tax deductions.
The Act's amendments are detailed in the Schedule, which includes provisions for updating the dates and conditions under which certain organisations can receive tax-deductible gifts. For instance, the Act extends the period for the Australian Education Research Organisation Limited and the Jewish Education Foundation (Vic) Ltd, among others, to receive such gifts. The amendments reflect a commitment to supporting these entities in their ongoing charitable activities, ensuring they can effectively contribute to education and other societal benefits.
Scope and Application
The Treasury Laws Amendment (2022 Measures No. 5) Act 2023, which received royal assent on 16 February 2023, amends the law relating to taxation in Australia. This Act applies to the Commonwealth and is designed to impact entities that are eligible to receive deductible gift recipient (DGR) status under the Income Tax Assessment Act 1997. Specifically, the Act modifies the eligibility criteria for certain organisations to qualify as DGRs, thereby affecting their capacity to receive tax-deductible donations. The amendments set specific dates for when gifts must be made to be considered tax-deductible, thereby influencing the financial planning of these entities. The Act's provisions came into effect on 1 April 2023, as per the commencement date specified in the Act. The amendments are precise and do not extend to other areas beyond those explicitly stated within the Act; however, they may be further refined or expanded through subordinate instruments if necessary.
Key Provisions
The Treasury Laws Amendment (2022 Measures No. 5) Act 2023 amends the Income Tax Assessment Act 1997 to update the list of deductible gift recipients (DGRs) and modify the conditions under which gifts to these entities can be tax-deductible. Section 30-25(2) of the Income Tax Assessment Act 1997 is altered by adding the requirement that gifts must be made before 1 January 2023 for certain DGRs. Additionally, new DGRs are listed with specific time frames for when gifts can be made to qualify for tax deductions. For instance, gifts to the Australian Education Research Organisation Limited must be made after 30 June 2021, while gifts to the Jewish Education Foundation (Vic) Ltd must be made between 30 June 2021 and 1 July 2026.
The Act imposes certain obligations on donors and DGRs. Donors must ensure that their gifts are made within the specified timeframes to qualify for tax deductions. DGRs, on the other hand, must continue to meet the criteria set out in the Act to maintain their DGR status. This includes complying with any additional conditions or requirements that may be stipulated in the Act or by the Australian Taxation Office (ATO). The Act also requires DGRs to provide accurate and complete information to the ATO as needed, such as details about the gifts received and their intended use.
Breaches of the conditions for claiming tax-deductible gifts may result in the loss of the tax deduction. The Act does not explicitly outline penalties for non-compliance, but it is likely that the ATO could take action under the general provisions of the Income Tax Assessment Act 1997. This could include the imposition of penalties for providing false or misleading statements or failing to maintain proper records. In severe cases, criminal charges could be brought against individuals or entities found to have deliberately misled the ATO. These penalties could include fines and, in the case of criminal proceedings, imprisonment.