Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 50.110

General rule

             (1)  An entity is entitled to be endorsed as exempt from income tax if the entity meets all the relevant requirements of this section.

Which entities are entitled to be endorsed?

             (2)  To be entitled, the entity must be an entity covered by item 1.1, 1.5, 1.5A or 1.5B of the table in section 50-5 or item 4.1 of the table in section 50-20.

Requirement for ABN

             (3)  To be entitled, the entity must have an * ABN.

             (4)  However, for a trust:

                     (a)  covered by item 1.5 of the table in section 50-5 because the trust is covered by paragraph 50-80(1)(d); or

                     (b)  covered by item 1.5A of the table in section 50-5 (because the trust is covered by paragraph 50-80(1)(c));

to be entitled, the existing trust mentioned in paragraph 50-80(1)(a) must have an * ABN.

Requirement to meet special conditions

             (5)  To be entitled:

                     (a)  the entity must meet the relevant conditions referred to in the column headed "Special conditions" of whichever of items 1.1, 1.5, 1.5A and 1.5B of the table in section 50-5 and item 4.1 of the table in section 50-20 covers the entity; or

                     (b)  both of the following conditions must be met:

                              (i)  the entity must not have carried on any activities as a charitable institution (if the entity is covered by item 1.1 of the table in section 50-5) or for public charitable purposes (if the entity is covered by item 1.5, 1.5A or 1.5B of that table);

                             (ii)  there must be reasonable grounds for believing that the entity will meet the relevant conditions referred to in the column headed "Special conditions" of whichever of items 1.1, 1.5, 1.5A or 1.5B of the table in section 50-5 covers the entity; or

                     (c)  if the entity is covered by item 4.1 of the table in section 50-20 and has not made any distributions--there must be reasonable grounds for believing that the entity will satisfy section 50-72.

             (6)  To avoid doubt, the condition set out in section 50-52 (requiring the entity to be endorsed under this Subdivision) is not a relevant condition for the purposes of subsection (5).

Table of sections

51-1          Amounts of ordinary income and statutory income that are exempt

51-5          Defence

51-10        Education and training

51-30        Welfare

51-32        Compensation payments for loss of deployment allowance for warlike service

51-33        Compensation payments for loss of pay and/or allowances as a Defence reservist

51-35        Payments to a full-time student at a school, college or university

51-40        Payments to a secondary student

51-42        Bonuses for early completion of an apprenticeship

51-43        Income collected or derived by copyright collecting society

51-45        Income collected or derived by resale royalty collecting society

51-50        Maintenance payments to a spouse or child

51-52        Income derived from eligible venture capital investments by ESVCLPs

51-54        Gain or profit from disposal of eligible venture capital investments

51-55        Gain or profit from disposal of venture capital equity

51-57        Interest on judgment debt relating to personal injury

51-60        Prime Minister's Prizes