Special conditions for tax concession entities

Treasury has released for consultation an Exposure Draft Tax and Superannuation Laws Amendment Bill 2014 which will implement the long overdue 2009-10 Budget measure to restate and centralise the special conditions for tax concession entities (such as not for profits and charities).

It incorporates the results of a review of tax concessions provided to the NFP sector including deductible gift recipients.

The draft Bill:
• re-states the ‘in Australia’ special conditions for income tax exempt entities, ensuring that they generally must be operated principally in Australia and for the broad benefit of the Australian community (with some exceptions);
• centralises the other special conditions entities must meet to be income tax exempt, such as complying with all the substantive requirements in their governing rules; and
• codifies the ‘in Australia’ special conditions for deductible gift recipients ensuring that they must generally operate solely in Australia, and pursue their purposes solely in Australia (with some exceptions, such as overseas aid funds, some environmental organisations, some touring arts organisations and medical research institutes).

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