Update to "In Australia" Conditions For Tax Concessions
18 April 2012
Consultation papers, including a second draft Restating and standardising the special conditions for tax concession entities (including the 'in Australia' conditions) were released yesterday. Information can be found at
http://www.treasury.gov.au/consultationsandreviews/submissions/2012/in-australia-special-conditions-for-tax-concession-entities-revised.
The information includes: 'Entities that are currently prescribed in the regulations under section 50-50 of the Income Tax Assessment Act 1997 will be grandfathered, and therefore unaffected by the changes to the 'in Australia' special conditions.' As Missions Interlink and its members are prescribed in section 50-50 of the Act, they will retain tax exemption under the new draft. However, exactly what is meant by 'grandfathered' is unclear from a brief look at the material provided and we will need to get legal clarification on this.
Submissions regarding the draft are due Friday 11 May and Treasury expects to introduce the measures to Parliament 'mid-2012' to commence from Royal Assent. While the ACNC will be responsible for the regulation of charities, the ATO will maintain responsibility for assessing any further conditions that are specific to eligibility for certain tax concessions, such as 'in Australia' special conditions. Missions Interlink will be responding to the consultation papers and will provide further information when it becomes available.
The information includes: 'Entities that are currently prescribed in the regulations under section 50-50 of the Income Tax Assessment Act 1997 will be grandfathered, and therefore unaffected by the changes to the 'in Australia' special conditions.' As Missions Interlink and its members are prescribed in section 50-50 of the Act, they will retain tax exemption under the new draft. However, exactly what is meant by 'grandfathered' is unclear from a brief look at the material provided and we will need to get legal clarification on this.
Submissions regarding the draft are due Friday 11 May and Treasury expects to introduce the measures to Parliament 'mid-2012' to commence from Royal Assent. While the ACNC will be responsible for the regulation of charities, the ATO will maintain responsibility for assessing any further conditions that are specific to eligibility for certain tax concessions, such as 'in Australia' special conditions. Missions Interlink will be responding to the consultation papers and will provide further information when it becomes available.
By Pam Thyer, National Director Missions Interlink
